Comments on: Frugal People Focus Too Much On The Outgo

By: Free E-Filing, Financial Risk Management, Falling Home Prices

Free E-Filing, Financial Risk Management, Falling Home Prices — Thu, 29 Jan 2009 04:35:20 +0000

[...] Frugal Dad: Frugal People Focus Too Much On The Outgo [...]

By: Weekly Roundup - Winter Reprieve Edition | Cash Money Life : Cash Money Life

Sun, 25 Jan 2009 12:06:54 +0000

[...] Frugal People Focus Too Much On The Outgo. Frugal living is good, but if you really want to get ahead, you also need to focus on increasing income. [...]

By: Jules @ Lovely Las Vegas

Jules @ Lovely Las Vegas — Sat, 24 Jan 2009 18:58:52 +0000

Great reminder! For some people extreme frugality works and makes them happy… but sometimes you do need to evaluate what your doing with your time. Do I want to spend all my free time trying to figure out how to get everything at the best cost, or would I rather have a little more free time for other activities? Or, maybe I could spend an extra hour or so per week working and make more money than I would be saving by spending 1 hour to make my own detergent.

By: tammy

tammy — Sat, 24 Jan 2009 15:20:08 +0000

I have always believed in side hustles and have adapted a work ethic of creating them. One of the most fun side hustles I have is selling books on half.com. I love books and I love to go to the thrift mart and pick them up for pennies. Then i sell on half.com. Last week, I found a uses textbook for fifty cents. I sold it for $28 dollars and that was MUCH cheaper than the local college book store sold for. I sell on craigslist.org and in the summer I sell plants from my garden.
I forget who wrote this, but I think it is one of the most profound statements:
“The trouble with being poor is that it takes up all your time.”
Time=money=life energy
FD- always enjoy your posts!

By: TStrump

TStrump — Sat, 24 Jan 2009 06:38:26 +0000

I think some people do go overboard with regards to being frugal.
I like to ‘watch my expenses’ but it’s all about time management with me – is the time spent being frugal worth the return, sometimes?

By: Craig

Craig — Fri, 23 Jan 2009 19:44:39 +0000

Thanks David for going more into detail about the opportunity costs of the situation. You did a great job explaining it and it really depends on the persons mentality.

By: DavidK

DavidK — Fri, 23 Jan 2009 19:42:47 +0000

Ah yes, that is a good way to look at it Craig. Many people are discussing the merits of saving versus earning and which is “better”.

Taking Craig’s $5 example, some people would rather cut the $5 down to $1-$2 and save the remainder. Others would rather cut $2.50 out of spending and earn an additional $2.50 thereby giving a net gain of $5 without the stress of trying to earn $5. Still others would rather cut only $1 and try to earn the $5 making a net gain of $6. Most Americans would rather earn the $5 and just spend their new overall budget of $10! The amount of net gain is where the line of frugality is. It is different for everyone except that almost no one can cut their expenses so low that they spend nothing at all. It is probably best for most to cut as much from the budget as possible while maintaining their mental and emotional health as well as to earn a little money in a “side hustle” to boost their net gain. The real question is, “What is your side hustle?”

By: Craig

Craig — Fri, 23 Jan 2009 19:33:10 +0000

That almost sounds like the cup half empty/half full argument. Would you rather save $5, or make an extra $5? Guess it depends on who you are and your situation. Lot of factors involved, interesting way to look at it.

By: Beth - Smart Family Tips

Beth - Smart Family Tips — Fri, 23 Jan 2009 17:28:32 +0000

@ Tim Wright — Okay, I admit it: I’m a laundry detergent maker. There are lots of homemade laundry detergent recipes out there, but this is the one I use:
1 bar Fels Naptha soap (grated — I use my food processor to grind it up)
1 cup Arm & Hammer Washing Soda — NOT baking soda (it’s usually in the laundry aisle)
1 cup 20 Mule Team Borax

That’s it. Mix it together. Keep in an airtight container. Use 1-2 Tablespoons per load. I’ve been using this for over a year and my clothes have never been cleaner. It takes me 15 minutes every few months (I multiply the recipe) and I’m good to go.
Fels Naptha can be purchased at http://www.soapsgonebuy.com for $1.75/bar. The other two items can be purchased there as well, but I’ve found them cheaper at Target and Kroger.

By: Pat Lagreid

Pat Lagreid — Fri, 23 Jan 2009 09:52:24 +0000

Thanks for the reminder that it’s really about “minding the gap” – the difference between income and expense. I have been busy attending to the expense side over the past few weeks, time to turn back to the income side!