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The stuff about Warren Buffet's frugality is exaggerated by the media. The truth is, Buffet owned a 2nd beach house in Laguna Beach for many years. That doesn't get as much media attention, because it ruins the "frugal billionaire" image they like to create.
Absurd. Choose the Buick vs the BMW = action and meaning. Done.
The questions are about why and mostly what to do with what is saved.
Absurd. It means exactly as much as you want it to mean...
and are willing to act to make it your reality.
When push comes to shove, it's your savings rate and how you invest it that matters.
Personally, I've always had a very large chunk of discretionary spending. It's a lifestyle choice. Some people collect things. Some people collect wealth. I've always tried to collect memories. I never saw the point of being frugal. I don't have infinite resources so I never picked the BMW but that's because I picked the ski condo or the sailboat or the 20 month sabbatical. I didn't create a huge pile of wealth worth millions but I'm 60 and I have enough that I don't have to work if I don't want to and I'll live comfortably.
My definition of frugality is getting the best value for your money. And also not buying things you don't need or want. #2 is important because some people just focus on getting a good deal then they buy so much they are burdened with the "stuff".
I'm not sure I count living within your means. Someone can have plenty of income but spend it on overpriced things - I don't consider that frugal even if it is below their means.
or the reverse . they buy things that have good value , need them ,but can't really afford to buy them because it will leave their budget with out enough slack for the next awe crap even though dollar wise there is free cash at the end of the month .
but with a low ratio of discretionary spending there will be little you can cut out if you reduce that spending budget buying things you should not be buying even though you are under budget at the moment .
or the reverse . they buy things that have good value , need them ,but can't really afford to buy them because it will leave their budget with out enough slack for the next awe crap even though dollar wise there is free cash at the end of the month .
I think you are saying people should have an emergency fund to be frugal. I see this when people are restricted to using repair people that take credit cards - not only the cost is usually higher but there is interest on the CCs as well. So having an emergency fund will enable someone to be frugal. Sometimes people buy a new appliance or car because they can't afford the immediate cost of repair and financing is easily available.
no , an emergency fund is a one shot deal for emergencies .
the point i am trying to get across is just because your bills are less then you have it is not a good thing and it does not mean you are living below your means , which to me is meaningless as a statement .
if almost everything is a "need " and you have few "wants " then when bad things happen you have little to cut back on . you can't cut back much if 80% of your budget is needs .
when you set up a lifestyle you need to have a good ratio of needs to wants .
the budget in dollars may be the same amount but the make up and ability to cut back is totally different
Last edited by mathjak107; 11-14-2018 at 03:32 PM..
I don't know that frugal means living below your means. What about just not living above your means? And that would mean investing a portion of your income, not spending it all. Delayed gratification, too. Good things are worth waiting for.
the point i am trying to get across is just because your bills are less then you have it is not a good thing and it does not mean you are living below your means , which to me is meaningless as a statement .
For me, "living below your means" is when your bill plus necessities (like food & gas, etc) plus discretionary expenses are less than your usual income. How is that not a good thing?
Quote:
if almost everything is a "need " and you have few "wants " then when bad things happen you have little to cut back on
I get the impression that your financial style is to cut back on discretionary outlay when an unusual expense occurs. Which seems to work well for you. But most households don't have such a large buffer of discretionary outgo so it is good to set back a little each month for an "emergency fund" for non routine expenses.
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