Comments on: Pinching Pennies Or Squeezing Big Returns: Which Is The Ultimate Path To Wealth?

By: Dieting For Dollars

Dieting For Dollars — Fri, 10 Apr 2009 15:47:16 +0000

[...] isn’t the only way to approach spending. It may not be the best way for you. But its an additional tool you now have. My experience tells me that when I want to do (or eat) something, thinking about [...]

By: Get A Tax Refund, Pay Taxes With Plastic

Get A Tax Refund, Pay Taxes With Plastic — Fri, 10 Apr 2009 03:38:05 +0000

[...] Frugal Dad: Pinching Pennies Or Squeezing Big Returns: Which Is The Ultimate Path To Wealth? [...]

By: Cathy

Cathy — Tue, 07 Apr 2009 19:03:16 +0000

I am frugal because I don’t believe in being wasteful. On the other hand, I do buy high quality ‘luxury’ items on occasion. I bargain shop aggressively for them.

I also follow some old fashioned things that my depression grandmother used to do, like using vinegar as a cleaner and a fabric softener. I cut up my own chickens. Does it save me money? Sure. But there are other reasons as well. I have sensitive skin and vinegar doesn’t irritate my skin the way fabric softener does. Vinegar as a cleaner for my kitchen counters doesn’t irritate my lungs the way bleach does. Cutting up my own chickens is often fresher and tastes better than mechanically separated chickens, and I can use the chicken bones to make stock. Chicken stock is the secret to the difference between homemade and gourmet!

By: Jeff@StretchyDollar

Jeff@StretchyDollar — Tue, 07 Apr 2009 00:14:14 +0000

I think you’re right – a mix of both works for different people in different situations. That’s why there can be two kinds of ‘frugal’. If we were all the same and in the same situation, one would work out better. But, obviously, things aren’t that way.

By: Kate@LivingTheFrugalLife

Kate@LivingTheFrugalLife — Mon, 06 Apr 2009 17:12:33 +0000

I follow Amy Dacyczyn take on this issue. That is to follow Ramit’s advice first, and then go on to tackle Trent’s sort of discipline. Basically, you should definitely plug the biggest holes in a sinking ship first. But there might only be five or six big holes to plug. Then you might have hundreds of tiny holes. Saving big money in one fell swoop is great, but chances are you can’t manage that more than a few times per year. On the other hand, there are hundreds of little ways to save day in, day out, for years on end.

So yeah, sweat the big stuff first. When you’ve got those things under control, then you can sweat the small stuff. That’s my approach anyway. I don’t think it’s an either-or situation; it’s a matter of prioritizing.

By: Bryan

Bryan — Mon, 06 Apr 2009 15:48:38 +0000

Rob is on the right track…. anything you do that might “save” you money or “free up” cash flow, doesn’t really matter unless you have a purpose for the saved money and extra cash flow. Without a deep, meaningful purpose, one is most likely to “consume” rather than “conserve” the benefit.
“Saving for retirement” is only meaningful if you have an idea when you’ll retire and how much you’ll need by then and how your decision will contribute to that goal, and you have a strategy or plan to follow.
The same applies to those who refinance their mortgages to take advantage of the lowest interest rates in history. If you do not have a purpose and plan behind the decision, you are probably wasting your time and your money.
I have found most people who refinance to lower rates without a strategy end up consuming the benefit and not changing old habits. Most are soon left with nothing but bragging rights to having a great interest rate, because the financial benefit was absorbed by mis-consumption of other debt.
A meaningful goal, a plan to acheive it, along with good discipline and habits create the foundation one needs to create and preserve their wealth.

By: Wealth Pilgrim

Wealth Pilgrim — Mon, 06 Apr 2009 15:38:37 +0000

I like the idea of attacking it on all fronts. But I think Rob’s point is excellent. If I’m clear on my objective, tactics unfold.

Having said that, my experience is that our biggest challenge is often staying in our “adult”. The adult inside knows what good choices are. The “child” inside us wants what he wants when he wants it.

Most of us have the knowledge we need. When I remain aware of my childish side, I’m able to make better financial choices.

By: Jeff

Jeff — Mon, 06 Apr 2009 14:03:52 +0000

I appreciate both points of view. My approach is to look at things as ‘consumable’ items versus items that last longer. I will clearly ‘pinch pennies’ when buying food or hygiene products. My mentality is, once used will not be used again, so I will try to save every cent I can. On the other hand I’ll pay a little more for items that will be usable over a period of time, such as a car, television, house, clothing, etc. Or if I have to travel a great distance to save just a few cents, I go with the store I’m currently in. Sometimes you can spend a lot of time and money to try and save a few cents. In all of my monetary decisions, I attempt to determine, what is my return on investment.

By: Thrifty Momma

Thrifty Momma — Mon, 06 Apr 2009 13:23:14 +0000

I think it takes a little of both. What can you do to further eliminate your expenses once you take care of the bigger ones? All the little and easy ways. For me I don’t have any credit cards or a house payment. So I can’t get cheaper interest rates since I don’t have those payments. I can attack my grocery bill monthly. I also changed our lights to CFL bulbs and have noticed a nice savings. I also turn off the power strip before going to bed each night. Many of my little changes have added up to bigger savings. Some are more immediate than others, but they all add up. I don’t deprive myself of some the guilty pleasures. I don’t have many, but I do enjoy our DVR. We save money on things that don’t matter to us so I can spend money on things that do matter. I believe it’s all about balance and priorities.

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Mon, 06 Apr 2009 13:19:34 +0000

I say attack expenses on all fronts– big or small. Doing this gets you in the mindset of not throwing money away and keeping it where it belongs in your pocket or account!