Spending Series Part 1: Our Frugal Habits

Frugality is a cornerstone of Financial Independence.  While most of the world may view frugality as foolish, restrictive, or even a fruitless waste of time, most of us in the FI community actually treat it as a badge of honor.  We’re here to confirm that both of us are indeed proud of our frugalness and we’d like to share some of our own frugal habits.

Scout

I grew up practicing frugal habits before I even knew what that word meant.  When I did finally hear people use the term “frugal” I initially felt a little ashamed or embarrassed because I associated it with being poor or cheap.  But after all these years I’ve come to embrace the term and define it for myself as: being conscious of how & where I spend my money, not spending on frivolous things, trying to get the most use/life out of everything, and/or trying to get the best deal for something (usually meaning lowest price for a minimal-level of product quality).  With that definition in mind, here are some of my frugal habits that I’m proud of.

• I brought my own lunch to work (most of the time).  Nothing groundbreaking here – so many people do this and it’s probably one of the most common frugal habits out there.  What I really wanted to mention is that I didn’t always bring my own lunch.  At one point in my career I had a very high-pressure/time-consuming job, so my friend and I would go out for lunch every day just to decompress for about an hour.  We were working a lot of overtime, so I justified this to myself by saying that these lunches were bought using my OT pay (not my base salary).  I honestly have no regrets about this short period in my life, because while I could have been saving money by bringing a lunch from home, going out to eat did help get me through the day and it helped build a stronger relationship with my friend.  And for anyone who is curious, besides the few years I spent at this specific job, I did always bring my own lunch otherwise.

• We eat mostly at home.  This means not dining at restaurants or ordering food for takeout, and we’ve never used a delivery service like DoorDash.  The primary driver is saving money, due to higher prices of the food itself and an obligation to tip at sit-down restaurants.  But another reason is the time and hassle it takes to go to a restaurant; sometimes it’s easier & more comfortable to just stay at home and make dinner in our pajamas.  Doug Cunnington from the Mile High FI podcast actually has a great concept that we’ve been trying to implement recently: In most cases, the best quality food at the grocery store is still way cheaper than the equivalent item at most restaurants, so go ahead and buy the higher-priced item at the store without worrying much about price since you’ll still save money and most likely have a better meal.  A good example of this are steaks – even top-of-the-line steaks from a grocery store/butcher will be cheaper (and equivalent or better in quality) than what most restaurants offer.  We still go to restaurants on special occasions and from time-to-time, but we don’t go on a regular basis like so many others (2 or 3 or more times each week). 

• Avoiding large home improvement/remodeling projects.  In my view, having a plain yet functional house is way more important than having a house that is visually appealing with all the latest trends.  Don’t get me wrong, I don’t want a house that is falling apart and that needs major repairs, but I’m okay with some slightly outdated trends (such as granite countertops or dark cabinets) and even a little paint chipping.  Similar to passing on the latest electronics or gadgets, I’m okay being a little “behind the times” as long as I can feel comfortable at home.  Because house projects usually tend to be high-price, I’d rather save that money and use it elsewhere.  I also tend to look at any potential projects analytically and try to evaluate “resale value” or “return on investment” – I always wonder if I’ll get my money back, because I can never just enjoy something for what it is.

• Saying no to home decorations (especially seasonal).  I have the same attitude towards home decorations as I do towards home improvement/remodeling projects, especially seasonal decorations or items that are displayed only inside the house.  Unless something is functional and perhaps makes my life easier, I’m okay with a plain house and not spending money for aesthetics only.  This is an area where my wife and I disagree because she’s all about home decorations.  Unlike big home improvements which tend to take a lot of time and cost a lot of money, this is an area we’ve compromised on and have come to an unspoken agreement – she still decorates for every major holiday and buys general household decorations on occasion, the caveat is that she buys lower-cost items at Target, Walmart, or the dollar store.  I’m fine with this because she can still enjoy something important to her, yet do it in a way that has no real impact on our finances.

• I cut my hair at home.  Well, technically my wife cuts my hair while I sit on a stool in our bathroom.  We’ve been doing this so long that I literally have not set foot in a barbershop in almost 20 years.  Lest you think my wife is a professional hairdresser, she is absolutely not and has never even bothered to learn how to cut hair (not even by watching YouTube).  We just break out the trusty Wahl trimmers every 4-6 weeks and 10 minutes later, voila, automatic $20+ saved.  For those who know me, I bet this is something that nobody even knew (probably because I tend to wear a hat 97.3% of the time anyways).  Similar to my attitude towards home improvements or decorating, aesthetics aren’t something I care too much about, not even my own aesthetics!  Bonus frugal points: In 20 years of cutting my hair, we’re still only on our 2nd trimmer!

• I drive a 28-year-old car.  Driving an old car is another fairly common frugal habit so nothing really innovative here.  What I’m really most proud of is the long history this car has had in my family – my parents bought a 2-year-old car in 1998 for me to drive during my senior year of high school, I subsequently drove it through college, my parents took the car back when I got a new car after graduation, it was eventually passed on to my younger brother to drive throughout his high school/college/early working career, and then I took possession of the car once again in 2018 when my brother bought his first new car.  I was so happy to get my old car back because of all the great memories it provided, it’s a small car so it’s fun to drive, and it’s very practical (35-40 mpg when I had a long commute to/from work at the time).  I like to joke that this car is a family heirloom because it’s been passed around & back again to so many of us.  I even tell my kids that someday this car will be passed along to them, however I usually backtrack on this statement quickly because I actually enjoy the car so much that I don’t want anyone else to drive it.

• I have an iPod Touch from Craigslist.  Due to a long work commute I became a huge fan of podcasts back in 2016 and bought a cheap, used iPod Touch on Craigslist for $20.  My plan was to use the iPod until it died and then buy a similarly cheap replacement. Well, over the years my listening habits expanded beyond just commuting – I would listen to podcasts any chance I got (on average 3 – 5 hours a day) – while doing dishes, paying bills, yardwork, etc.  Because of all the use, my iPod has seemingly been on its last legs for years – some of the buttons don’t work, the battery life is VERY short, and the case is broken.  But after 8+ years it’s still going strong and I’m trying to squeeze every last drop of life out of it.  I know that most people use their cell phones to listen to podcasts or music these days, but I’m not ready to give up on my trusty iPod just yet!

• Not buying the latest electronics or gadgets.  Yet again, another common frugal habit.  I keep cell phones until the battery won’t hold a charge, I had a 10-year-old tablet that I finally replaced because the apps were no longer being supported, and of course I already mentioned my Craigslist iPod earlier.  Besides the higher prices that come along with these items, I also like to wait until all the bugs are worked out.  It’s inevitable that most first generation products (particularly electronics) will have some sort of defect or performance issue that is usually resolved by the next generation or after it has been out for a while.

• Not buying food or drinks at concerts, sporting events, or movie theaters.  This practice has carried over from my childhood.  Believe it or not, but way back in the day many venues allowed customers to bring their own food!  I still vividly remember going to watch “The Karate Kid Part II” and “Home Alone” in the theater with my dad and carrying in a bag of microwave popcorn and other snacks from home.  As I got older & became more aware of money, I realized for myself how expensive food was at these venues since they have a captive audience and are simultaneously becoming more strict on what outside food can be brought in.  While I still haven’t given in completely, I do want to acknowledge that I’m starting to ease up on my stance ever so slightly… I just have to keep reminding myself that the high price of food is just part of the territory & part of the experience that I’ve chosen to participate in.

• Parking for free at concerts or sporting events.  While I’m starting to ease up on my hardline practice of not buying food at these venues, I’m still very strict about parking.  I absolutely hate paying for parking when I know that in most cases I can get parking for free (of course with the caveat that I need to park my car FAR away).  I justify this to myself by thinking: 1) walking is good exercise anyways and 2) those who park near the venue will just get stuck in traffic after the event ends.  I always get a kick when I find street parking, then walk about a block and see that someone is charging $20-$30 to park in their lot… Easy savings right there!

The Squire

I enjoyed going to the grocery store with my parents from time to time as a kid, and learned how to compare prices. I also spent my allowance on various great and not so great buys growing up. I realized that cheap wasn’t always going to last. In college I learned how to make the dollar stretch. However, when I got a job out of college, I definitely spent my paycheck. After getting married and focusing on spending, the following are some tendencies I’ve tried to incorporate that I would categorize as frugal.

• Rarely Buy New Clothes.  Although I will replace my clothes when they get too many holes or shrink too much, most clothes I purchase I treat well, and therefore they last for awhile. I wouldn’t say that I have much of a fashion sense, so I don’t feel like I need to get a new wardrobe every year. When I do get new clothes, I check out the sales first. We also stop by second hand stores from time to time, so sometimes I’ll find clothes there at a much lower price. I don’t enjoy spending time looking for clothes, so if there is something I need I usually see if they have it at Costco first, since they tend to have a much smaller selection, but at a good price.

• Shop at Costco. Besides clothes, Costco is also my preferred supplier for food, paper goods, and other household products. We typically only purchase items from Costco that we know we’ll use, as their price per unit is usually great, but they do sell in bulk. We’ve found they typically have quality items at a good price.

• Don’t watch home makeover shows. There are loads of TV shows, magazines, and media encouraging people to spend tens of thousands of dollars updating their homes. For the most part I don’t have much interest in these. I don’t mind spending money to make our house more functional and organized, but it has to be worth the money we spend. I do fully admit that many projects we haven’t taken on would probably increase the value of our house by more than it would have cost. However, choosing house projects carefully has helped us to keep our spending relatively low.

• Don’t go to restaurants on a regular basis. Yes, we go out from time to time, but we try to make it a special occasion rather than a regular occurrence. It just so happens that our family enjoys eating at home, so this isn’t too big of a deal for us these days. Hopefully we can keep this up as our kids’ appetites and tastes change, and as schedules get busier.

• Birthday parties at the park.  We haven’t thrown any extravagant birthday parties for our kids to this point. We give them more options these days, but when they were younger, and even before COVID-19, our go-to would be celebrating with family at the park. We would grab themed decorations, paper plates, cups, and napkins at the dollar store. Rather than pay money to reserve a shelter, we would just choose a park with bathrooms, a playground, and extra grass for playing. We would set up near some trees or bring a canopy for shade. Rather than provide a full meal, we would schedule it in between meals like from 2pm-4pm, and just provide appetizers and a cake.

• Potluck get-togethers.  When we get together with family or even friends, sometimes we’ll order pizza, but the default is usually a potluck. Each family member or friend will bring a few ingredients for the makings of a meal, like burritos, or a baked potato bar, and even for holiday meals. Everyone usually brings extra, and everyone goes home with leftovers. Bringing just one or two items or dishes in bulk saves a lot of time and money.

• Store pick-up.  During COVID-19 I learned that stores have apps that allow you to create and submit an order of the items you want, and they will deliver it right to your car at a preferred time for free. We tried a few of these before we came across one that worked great and did a good job of picking out good fruit and vegetables and finding substitutes when they were out of what we asked for. It is super easy to spend a few minutes to put in the same or a similar order as the last week the evening before when the kids were down, show up at the store, tap the app when you’re there and head home a few minutes later. Obviously this is a huge time saver, but it also saves us money and is much healthier for people like me who love to pick up extra sugary goodness when walking through the store. We spend much more time going to Costco these days, but even they will deliver for free if you spend over a certain amount. We still use this from time to time if we know we aren’t going to have time to go to the store but need some of the basics.

• Analysis Paralysis. Okay, believe it or not, there are some advantages to having a case of analysis paralysis and taking forever making some decisions. (Analysis paralysis means thinking about something over & over & over to come up with a “perfect” solution, but in the meantime never actually making a decision or doing anything). When it comes to making purchases, many times I figure I’ll do a little research first. I’ll check out reviews on Amazon to see which product has the most stars in their reviews. I look at the number of reviews, and compare with reviews on other sites such as Target and Walmart. Then I will check out reviews on YouTube to see the product in use and any additional insight a user might have. During the process I will check out good reviews and bad reviews to look for consistent issues found with the item. If it seems that I’ve found a good product, then I consider how much of a hassle it would be to return the item if it was defective, and if that process would be worth going through an online retailer or in person. Many times I will keep it in my online “cart” and come back to it another time. Sometimes I’ll come back a few days or weeks later and decide I don’t need it after all, and remove it from my cart. I admit, this process does take time and may not be worth the time I spend researching for the lower priced items.

You’ve just read about the frugal habits that we’re actually proud of, but sometimes frugality can go a little overboard.  Stay tuned for Part 2 of our Spending Series to learn where we take frugality to embarrassing extremes.  Also coming up is Part 3 & Part 4 of our Spending Series where we switch from being frugal & saving money to telling you where we actually spend.

Links/Resources

• Doug Cunnington
• Mile High FI podcast
• Definition of “Analysis Paralysis”

Reader Questions

• What are your thoughts on the term “frugal”?  Does this word have any negative connotations for you or do you personally wear it as a badge of honor like us?
• What are some frugal habits you have in your own life?

Leave your answers or comments below – or email us directly at info@epicfinancialjourney.com