301: The Difference Between Being Frugal and Smart Spending

Learn why frugality is not the way to wealth.

Sometimes I grow weary from hearing people advise others to be frugal in order to build wealth.

Frugality is not spending money. Definition is skimping, sparing, and meager. To me what frugality is is spending less or nothing. If all you do is spend less and less, pretty soon you're living in the woods!

I'm all for careful spending, but I realized there's a difference between "not spending" and "making dollars go farther".

To me, I've always been about getting more for a dollar, rather than not spending a dollar.

That's a huge difference!

Make your dollars last longer. Buy at the right price…on sale, at a discount, a deal, wholesale, etc. Buy it at the right price. It's not about doing without or living in a shed.

I don't think that's living life! That's giving money too much power and creating misery in your life. I'd rather see you choose a few things you want and find a way to get them at a discount.

I play a game with myself to figure out how to get anything at a discount. Sometimes if it never goes on sale, it might be saving tax (about 10%) by buying it online.

You want to stay away from spending a lot on furniture, cars, vehicles, figurines, decorations, etc.

I have a friend who keeps buying furniture and remodeling, then complains there is no money! It's a downward spiral!

There's a big difference between not spending (being a miser = bad) and spending wisely = smart shopping.

I'm a stickler for quality though. I don't buy cheap things that won't last. I buy quality at a discount.

I don't want bad diamonds full of inclusions and that are supposed to be white or colorless and are yellow! I want great quality diamonds at a discount! Get it?

Do you really need a new paddle board or could you find one gently used? Do you need a $5,000 Italian bicycle or can you get a used one? Do you need a new couch? Could you find one gently used?

These large purchases harm you a lot more than a latte! Do you need to own a boat? Can you rent one?

These are big purchases and price tags that will kill your retirement. Soooo, make your dollars go farther! Have what you want and buy it at the right price!

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OR

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