I can tell by the recent web stats that my recent ”Use it Up, Wear it Out, Make Do” post has been a big hit and there have been a lot of searches on recession, saving money, and frugality leading people here to Two Frog Home.  In order to serve those folks and perhaps get the input of readers in the comments section as well, I’m going to do a series of posts / tips on frugal living and how I currently apply it to my life. 

Tip #1: Change Your Thinking

Changing how we do thing is never an easy thing, not for me, not for most folks I imagine.  We humans seem to like routine and habits, and breaking those are uncomfortable, a touch scary, and just plain hard no matter how much we may want the change.  If that’s so, then how do we do that in terms of how we think about money, spending, and frugality?  Simply, baby steps.

I think the first step is to get rid of entitlement thinking.  How many times have you heard or said the following: “I work hard, I deserve this (boat, RV, designer shoes, trip to Mexico, etc.)”?   How hard we work has nothing to do, necessarily, with how much we earn.  It’s how much we earn or don’t earn that should determine what we deserve to spend money on.  I agree that most of us work very hard, however; the hardest physical labor jobs also tend to be the lowest paying in my experience.  Working hard doesn’t give us license to spend beyond our means, it just means that we should enjoy our time off and relaxation more in my opinion.  I suggest changing that thinking to: “I work hard and I deserve a debt free life” or “I work hard and deserve a savings so that someday I don’t have to work so hard”.

I think its vitally important to stop attaching happiness and/or joy to shopping and things.  For a lot of people, I know thats very hard and if you have to get professional help.  However; as long as a person is seeking happiness through spending money, there can never be frugality.  This applies to thrift store / yard sale shopping too.  I know many folks who think its ok to spend money because its cheap or used or whatever, however the thrill of the hunt is really what gets them excited its not so much the stuff that eventually clutters up their space and mind.  Money wasted is money wasted doesn’t matter if it was a $150 pair of designer shoes or 5 kitchen gadgets for 50 cents each that you never use.  Change your thinking to one of “do I really need that” that involves thought before plunking down your change instead of “I really want that” and impuse buying.

Finally, change your thinking of buy now, pay later to buy now, pay now.  Paying later removes the reality of money from our spending, if the money and potential savings and/or waste isn’t real we can’t change how we think.  Make your earnings, money, and spending real to you.  Personalize it in a way that has meaning so that you show what you value through your check register.