1. There’s a designer logo on your handbag, shoes or clothing. Don’t pay a premium to flaunt a famous name on your attire (they should be paying you for all that free advertising!). Many designer items are made in the same Chinese factories as less expensive goods. The only message those logos convey is that you paid too much.
2. You have a key to a public storage unit. The problem here is twofold: you spent a lot of money on things you don’t use, and you continue to waste money on storing them. The best course of action: sell the contents of the unit on Craigslist, eBay or at a garage sale, and hand over the keys!
3. It takes you more than an hour to clean your house. Consider if you really need all that square footage. Downsizing to a smaller abode can save you money in myriad ways: you’ll reduce your rent or mortgage payment, utilities, and the amount of stuff you need to buy to “fill” your space.
4. You have no idea what your tap water tastes like. Packaged drinks (like juice, soda, and bottled water) can do a number on your grocery budget. Quench your thirst with tap water instead—the recommended eight glasses of water a day cost only about $1 per year.
5. You often receive compliments on the color of your hair, toenails or fingernails. If you’re a regular at the salon, cut your visits in half—or better yet, eliminate them altogether! Have a spa day at home instead: light some candles, put on some relaxing music, and give yourself a DIY manicure or pedicure.
6. You think you’re too young/old/rich/poor/cool/busy to save for retirement. No excuses—everyone should be putting something away for when they’re old and gray. Make it automatic: have a certain amount from each paycheck deposited straight into savings. It’s an effortless way to achieve financial security!
.7. There’s a fancy hood ornament on your car. A car is a means of transportation from point A to point B—not a reflection of your identity or success (as marketers would have you believe). Luxury cars are more expensive to purchase, maintain and insure. Sell that money-guzzler and instead of looking rich, be rich.
8. Your refrigerator is empty. When there’s no food in the house, it’s much too tempting to eat out (or stop for takeout). Action plan: make a menu for the week, shop with a grocery list, and stock your fridge with fresh food that’s easy to prepare. Consider cooking several meals at once and freezing them; they’ll be ready-to-eat on those nights when you’re too tired to cook.
9. You set foot in a shopping mall more than once last month. The best way to save money is to stay out of stores—it’s an incredibly easy way to preserve your wealth. And by all means, don’t shop for entertainment; limit your purchases to necessities, and spend your leisure time at the park instead.
10. You’re still paying off holiday credit card bills. You’ll have much happier holidays by heeding the following advice: never buy gifts on a credit card. Tailor your budget to the cash you have on hand. If you have little to none, don’t despair: give people handmade items, baked goods, or the gift of your time. It’ll be much more appreciated than anything bought in a store!
Bravo, Francine – this post should be required reading for all Americans!
#3 in particular really struck me… so much of the consumptive super-sizing of our shopping habits started in the home (buy a more expensive home and suddenly there is subtle, societal pressure to have clothes with more labels, to eat out at the “right” restaurants, to have the car with the fancy-schmancy hood ornament, etc.). Thanks for this wonderful post. My fingers are crossed that it will go “viral” on the internet… you are so spot on with this important message.
Thanks for the great comment, Manisha. I think choosing less consumptive lifestyles can make us not only richer, but also much happier!
[...] consumer behavior, and I highly recommend reading Francine’s original post in its entirety (click HERE to do so…). At the heart of this thought-provoking list are two key [...]
[...] Jay presents 10 Signs You’re Not as Rich as You Could Be posted at [...]
I live by Clark Howard’s theory when it comes to shopping. If it doesn’t have a concrete floor, I don’t shop there. Sam’s Club, BigLots and Freds
Ugh, I’m dismayed to find I AM as rich as I could be. None of these are true for me; can you offer up some secondary ’signs’ so that I can look for other areas where I may be over-spending?
This is a great article. A lot of these are already ingrained in my life and others I need to take action on. Thanks.
The only one of these that applies to me is #4 and the problem there is that i DO know what my tap water tastes like – it’s horrid. So bottled it is.
Succinct and sensible! Nice article!
Cheri – filter your water at the tap, or buy a filtration pitcher like Brita. Bottled water is proving to be very environmentally unfriendly, and the cost of all those bottles really adds up (in more than one way).
Hye Manisha,
I am with Carly, I too live according to that set of rules. It would be lovely to feel rewarded with more money at the end of my financial month. Gold Stars anyone:)
I also over pay my regular bills, that way if I do become unemployed I will have two months of free living before I have to worry about them. It will also help me not to play catch up when I am working again.
Thanks for all the great comments! (And special thanks to Manisha for linking to this post on her blog!)
I’m thrilled to hear that many of you are *already* living by these rules–that’s wonderful! I will certainly follow up with a “10 (More) Signs You’re Not as Rich as You Could Be.” It’ll dig down a little deeper, and provide some further (not so obvious) money-saving ideas.
Hey Manisha,
I’ve been enjoying your site – saw you mentioned at slate.com’s Happiness Project. I was looking through your siten and I didn’t notice any mention about giving to charities. Seems like that should be the goal of a frugal lifestyle, as well as financial security. That’s a discipline of most religions, too.
My husband and I often give to too many charities, and perhaps a frugillionaire way to give, one I often mean for us to figure out, would be to develop a deeper relationship with several charities and give meaningfully and generously to them?
Thanks!
Hi Heidi!
Actually, I’m Francine; Manisha was kind enough to link to my post from her blog.
Yes, you’re absolutely right: giving to charities can (and should) be incorporated into a frugal lifestyle. Being a frugillionaire means living richly, which we all know goes beyond how much money we have in the bank. It’s about making financial decisions that allow us to devote our time and money to what’s truly important–like supporting causes and charities that have special meaning to us.
[...] from Manisha: Francine & I first connected when I read her WONDERFUL post, 10 Signs You Are Not As Rich As You Could Be. Since then I’ve been following both her blog and her tweets & highly recommend you do [...]