Do you really need to live a life of extreme deprivation?
Extreme deprivation isn't really that much fun. To most folks, the idea of putting on 4 layers in the winter instead of turning on the heat is not that appealing. Standing in the grocery store comparing the cost per ounce of beans is, for many, not a recipe for a good time. The cost savings of single-ply toilet paper is just too abrasive for most (literally).
Don't get me wrong, frugality tends to come with some weird savings hacks that are the centerpiece of your friend's jokes. I have even heard of someone using industrial CO2 containers to make their own seltzer water. Frugal folks tend to be a pretty strange flock.
If you are motivated by cost cutting and frugality on small ticket items, go right ahead, I won't stop you.
But if the idea of penny pinching on the little things drives you crazy then perhaps you need a much needed re-frame on your concept of frugality.
"The Big Three" Expenses
For those of us who cannot tolerate the idea of skipping our latte factor items, there may be bigger fish to fry for you yet.
Saving on housing, transportation, and food is a hell of a good place to start. In fact, it may be the only strategy you will ever need.
Housing. Buy less house than you can afford, nothing more. Married with one kid and no plans for more? Why the hell do you need a 5 bedroom, 3 bathroom house? You don't. Be smart. Warren Buffet still lives in the home he bought for $31,500 in 1958.
Transportation. Don't buy a new car. Ever. It's really that simple. Buffet, one of the wealthiest men alive drives a midsize sedan, a 2014 Cadillac.
Food. Don't eat out. Split meals when you do go out. Cook at home a great majority of the time.
My thoughts on "The Big Three" expenses
Show these guidelines to your mortgage or real estate professional if you have trouble computing a price range off of these numbers.
Rule 1: Always buy less than you can afford
Rule 2: Purchase all necessary insurances - don't skimp on these!
Rule 3: Buy a house with at least 2 bathrooms - the more bathrooms in a home the better the resale value
Rule 4: Always get a termite inspection and order a plan that covers treatment.
Rule 1: When it comes to cars, buy used. Never buy new due to massive depreciation as soon as you drive it off the lot.
Rule 2: Bike or walk more often. If you cannot bike or walk, combine your trips to save gas and mileage on your vehicle.
Rule 3: Shop around for more affordable car insurance.
Rule 1: Drastically reduce, or eliminate, dining out and take out orders.
Rule 2: Cook at home.
Rule 3: Buy in bulk. Especially buying and storing the following:
If you happen to know you need a budget, but cannot see yourself trading in your 2-ply toilet paper for 1-ply to save a few Shekels, then focus your efforts in these three areas.
Comment below on how you have saved in these areas.