Frugal Living Mantras

The philosophy of how to live frugally and be happy.

  • Frugal living is our rake to bring in more money so we can invest it and make more money!
  • Only buy what you need
  • Only buy what you can afford in cash. Try to pay in real cash to see if you really want it. Cash in hand is hard to spend versus plastic.
  • Return things you don’t need
  • Sell things you don’t need
  • Don’t shop out of boredom or for enjoyment. Get hobbies or activities instead of distract you
  • Save 15% via 401K or at least try to get a company match if there is one
  • Save bonuses and windfalls such as tax returns. You are allowed to keep 20% as a treat.
  • Hold no debt other than mortgages
  • Pay off student loans asap as they are not dischargeable in bankruptcy.
  • Don’t take on too much student debt. Look at the ROI. When you do this you will see not all education and schooling pays off
  • No credit card debt allowed
  • No car loans, pay off asap. Only buy what you can afford. Cars are depreciating assets so don’t waste money on them. We want them to be appreciating assets. By depreciating assets I mean the value goes down over time. Appreciating assets like the market and housing go up over time.
  • Treat yourself the small things to make it bearable. For example buy nice beers or wine at the store instead of drinking while out.
  • Rule of mama: When shopping put the item you want in the cart. Walk around for thirty minutes. If you still want it and can afford it then buy it. If not put it back as you have had it. This cuts down on impulse purchases. (This doesn’t apply to frozen and refrigerated food)
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