The “Latte Factor” is a popular money-saving strategy that entails saving large amounts of money by cutting down on small things — like daily lattes. Personal finance blog The Simple Dollar explains why this strategy can fail and how to rethink it. More »
Advertisers would have us believe that we need a lot of things that we really only want, and that brand names are always better. This simple purchasing flowchart walks you through your purchasing decision-making process to help you make the smart choice. More »
Whether it’s a diet or frugality, the problem with placing extreme limitations on yourself is always the same: Once we feel too deprived, here comes the inevitable binge. Personal finance weblog The Simple Dollar discusses frugality and binge buying, pointing out the difference between frugality designed to improve your financial state and frugality as a tradeoff for financial binges. Many people view frugality as exactly that – a bunch of little steps they can take in areas of their life that are less important so that they can afford to splurge in other areas. “If I eat a cheap meal the next few nights, I can afford to go out to that steak house with my date on Saturday.” “If I carpool, I can afford to buy that new gadget in a few months.” Instead of helping you build a financially stable life, frugal tactics are sometimes used as bartering trinkets to help you keep living the high life. And that’s okay, as long as you’re honest with yourself about what you’re doing. This type of frugality doesn’t serve to put you in a better financial state – instead, it serves to help you maintain a lifestyle that, in some regards, is beyond your means.
I’m sure we’ve all done the financial binge, but it’s not as though the two are mutually exclusive, either. You can be thrifty, save tons of money, and still survive a binge or two without negating all the work you put into saving. Still, let’s hear what kind of frugality you practice more often in the comments.Photo by Alan_D.
Frugality and Binge Buying [The Simple Dollar]Author of new book The Power of Less Leo Babauta advises readers to simplify and focus only on the essential. Today he stopped by to tell us more about his timely message.
So you’ve just finished paying off (or mostly paying down) your holiday expenses, and now Valentine’s Day looks like it’s going to break your frugal stride. Not necessarily so, says Trent at The Simple Dollar personal finance blog. Rather than taking the easy-but-expensive route, he recommends both a few nuggets of common wisdom (thoughtful cards, secluded spots) and an idea that’s new to me: Take time off. If you both have some vacation time built up, put in for a day off and spend it together. Do some simple and purely fun things that you wouldn’t ordinarily get to do. Cuddle together for a big chunk of the day and just enjoy each other instead of stressing out at work.
If you’re the type who frequently has to use up vacation time at year-end, spending one day with a significant other is both realistic and a great way to show commitment. What do you have planned for the holiday that’s more thoughtful than bank-breaking? Spread the love in the comments. Nine Tactics for a Frugal Valentine’s Day [The Simple Dollar]
