Yahoo Finance How Success Can Influence Frugal Habits
I wasn't always frugal. There was a time when I used to "shop" to kill time and make purchases without comparing the cost of alternatives. Then I became a professional actress.
The shift to a reality synonymous with being broke changed my monetary mindset. It taught me to value each and every dollar. No longer was any previously negligible expense "just" a few bucks. It was three dollars I wouldn't be spending on groceries or five dollars I wouldn't be putting toward rent.
When funds are prohibitively limited, a value assessment of every purchase becomes necessity. And while necessity may have been the birthplace of my frugality, it is no longer the reason.
Recent income influxes, however modest, have offered a welcome reprieve from my former "broke" reality. Despite this newfound financial flexibility, however, practicing frugality isn't something I plan on giving up any time soon. I still get my haircut for free at cosmetology schools and opt for lower cost generic products whenever possible. But it's not because I don't want to spend money, it's because I prefer to save my budget surpluses, however small, for bigger priorities.
Increased success hasn't changed my values; it's changed my income.
In pondering these recent changes, I wondered how my frugality might continue to evolve as my career grows in the direction of success. I've heard enough cautionary tales of lifestyle inflation gone overboard to know that no amount of income is an excuse to spend beyond my means. But is there a way to indulge in success while staying grounded in frugality?
In my search for answers, I turned to some of my career role models: The women who've come before me on the path to financial wellness and found success of their own. They shared with me their own definitions of frugality and how their frugal practices have changed (and stayed the same) over the course of their success.
One of them, another former actress turned financial wellness pro, Chellie Campbell, is the bestselling author of "The Wealthy Spirit," "Zero to Zillionaire" and the newly released, "From Worry to Wealthy."
When I asked her what "frugal" means to her, she said it's about being careful with your spending and making sure to get good value for everything from cars to shoes. Her definition of frugality has evolved over time, too, as she's become more successful.
"Being frugal when I was a 'starving actor' meant nursing one cheap cocktail at 'happy hour' and taking some of the free snacks home to eat later. Now frugal means eating out at the local [California Pizza Kitchen]... Notice 'not eating out' is not part of my reality."
Like Campbell, making room in my budget for the things I value, like eating out, has always been a primary driver of my frugality. Now, I still use frugality to allow for budget flexibility, but on a slightly higher scale by enjoying more indulgence without going entirely overboard.
I also turned to bestselling personal finance author of "When She Makes More," Farnoosh Torabi. She is also the host of the award-winning podcast, So Money. To Torabi, being frugal means "being a conscious consumer and making reasonable and worthwhile attempts to save money," she told me.
I asked her how her definition of frugality has evolved as she's become more successful. "When I was younger and broke, my attempts to be frugal were occasionally counterproductive. Case in point: renting a car to drive to New Jersey to buy clothing, all because (at the time) there was no sales tax on clothing. But the price to rent a car and pay for gas outweighed any savings at the register. Now, before attempting to be 'frugal' I ask myself, 'Is the effort and savings really worth my time?'"
Torabi's past mistakes and lessons learned are ones I too have made and realized. The true cost of an item isn't what you pay at checkout, it's the total cost of your acquisition endeavor. Stepping back and taking a big picture approach to every purchase (and finances in general), can help realize which practices are truly frugal and which are counterproductively costly.
I also spoke with Emma Johnson, an award-winning business journalist and creator of WealthySingleMommy.com, a site dedicated to professional single mothers.
"Frugal means being conscious of your resources and using them to their maximum value, whether money, time, energy or things," she says. "As I've grown older, I have become more frugal. I appreciate more than ever what is finite, like time or things, and find ways to find abundance in my energy spent on what matters to me."
Johnson reminds me that being frugal extends beyond wealth to all resources. The ultimate practice of frugality is not spending the least amount of money, but striking the ideal balance between time, energy and money to get the desired results.
In short, being frugal is a philosophy aimed at maximizing value by spending in line with what you savor. While it is often fostered when funds are limited, the goal of spending intentionally fits into every budget.
Stefanie O'Connell is a New York City based actress and freelance writer. She chronicles her struggle to "live the dream" on a starving artists' budget at thebrokeandbeautifullife.com and her book, "The Broke and Beautiful Life," is now available.
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