Frugality

Recently, TheFundamentals was presented with the observation that it is out of touch with the difficulties, the troubles and, particularly, the financial hardships that are facing people who have lost their jobs, cannot pay their bills and are dealing with problems that are beyond their control. The observation was clearly designed to say that it may well be okay to talk the talk when you have savings in the bank and have lived a frugal life but others may not be as fortunate and, without help coming in the form of unemployment checks and government bailouts, they will succumb to the current difficulties. Here are some comments in response.

TheFundamentals is about values and common sense. Two basic values are frugality and savings. How does TheFundamentals define frugality and savings? Live within your means after saving at least 10% of your earnings. Do without things that are unnecessary - expensive cars, clothes and housing. Eat out occasionally and avoid the high priced places. Buy when things are on sale or out of favor. Shop for a good used car. Use common sense.

Never borrow unless it can be justified. When can it be justified? Well, to buy a home when you can reasonably predict an income flow sufficient to meet the recurring payments, taxes and upkeep expenses.

Do not incur credit card debt. Use the cards for convenience and pay them off in full at the end of each billing period. If you find that you have accumulated possessions that are not being used, sell them. EBay is a wonderful way to dispose of items that have value and are not used. Do not accumulate garage and basement and attics full of “things.” Do not rent storage space for the overflow from the basement, garage and attic. It is the time of year for "garage sales."

Have meals at home with your family and friends. Rent a vacation house and set up household for a week or two. Buy airplane tickets in advance. Cancel the cable TV (or at least the premium channels) and shut down the cell phone or the Blackberry or the IPhone.

No one needs a house with 5 or six bedrooms and baths. No one needs a fancy Mercedes or Lexus or huge SUV that gets 12 miles to the gallon. No one needs a Hummer. No one needs season tickets to a baseball park or a basketball team. Play golf at the local municipal course. Run up and down the stairs and forgo the personal trainer or the health club. Do sit-ups and push ups.

If you have done all of the above and are still in trouble, there are numerous charities and food pantries and church organizations that are available and that are supported by TheFundamentals. We still like casseroles and pasta meals and hamburgers on the grill. Homemade pizzas aren’t all that bad either! We bet our readers have a lot of their own good ideas that they may wish to share with others.

Frugality. Savings. They are fun, addictive and two of TheFundamentals.