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The big issue today is inflation. In my view, frugality can beat all inflation. I still don’t own a car, I don’t have a mobile. Ours is now an economy based on waste. If you change that, other factors will correct themselves.
Source: A senior citizen’s quote in the latest issue of Outlook Money when asked about his life experiences.
- Frugality can beat all inflation, and
- Ours is now an economy based on waste.
How many times have you heard dumb advise on the lines of “In the long run, equity is your only hedge against inflation?” But, no one really wants to admit what “the long run” is. Is “your long run” different from “my long run?” Frugality, on the other hand, has an immediate impact. You and I can feel it’s good effects today, right now. Brilliant thought.
And when I look at my own spending patterns, about 15 to 20 percent of my expenses each month easily classifies as “waste.” In the past, I have bought expensive stuff that I really did not need, kept them for a long time falsely convincing myself that I will use them one day, and then finally selling them at a deep discount to their purchase price. My 80GB iPod with video is a great example. When I recently sold it, I had used it for a grand total of 54 hours in just under two years!
How about you? How much do you waste each month?
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.