There are many different ways to become rich. One way is to operate in a frugal manner. Frugality is the ability to make economic decisions. Being frugal is totally different from being cheap.  A cheap person is someone who is always trying to find the lowest cost for everything at all cost. The cheap person tries to get the lowest price for every item no matter the quality of the item. The cheap person will sacrifice quality for price. The cheap person will also sacrifice other scarce resources such as time in order to get the lowest price.

A frugal person is not cheap. He or she looks at cost in terms of value. A frugal person seeks to purchase items worth their value. If the product or service is above its value the frugal person will ignore the item. The frugal person is about utility and value. In light of the current economic situation domestically and internationally one can argue that frugality needs to be reexamined.

Americans relationship with debt and risk has come to a head. The government is borrowing more money than it takes in. The Greece economic crisis also known as Lehmen two is a picture of what can happen with too much debt. Now may be an important time to look at our own lives to see if we are being good stewards of our finances. Are we making the right decisions concerning our money? Is it time for you to be frugal?

How to be frugal?

Frugality is a way of life. For those who are used to a consumerist mindset frugality will take getting used to. At the corner stone of frugality is delayed gratification.  It is making the sacrifice today for a better tomorrow. In order to be frugal you will need to save your money. Saving money means limiting consumption. It means making the necessary sacrifices not to buy what you want. As a result you will need to pick and choose what is worth buying. You will need to buy items that provide value and not just for useless consumption. Therefore before you buy anything you will need to ask yourself the following questions:

1. Do I need it?
2. Can I get it cheaper?
3. How long will it last?
4. What is the benefit to me?

If you want to be frugal you will limit debt consumption. Debt has become an infectious disease in the lives of many Americans. Finally in light of the recent economic downswing Americans are decreasing their dependency on credit cards. Americans in the last quarter have decreased their credit card limits. Too much debt is too risky and reveals a lifestyle that lacks discipline and control. Frugality controls debt and uses debt as a tool to advance, and not for useless consumption. Are you ready to be frugal?

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