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By Frugillionaire
 We all have some financial skeletons in our closets—purchases, decisions, and behaviors that have derailed (or even destroyed) our fiscal well-being in the past.
Despite our best intentions, these demons can continue to haunt us, sucking the life from our bank accounts and blocking the path to our financial goals.
In the spirit of Halloween, I propose an exorcism: let’s call out each of these financial ghosts in turn, and banish them once and for all from our lives!
Debt. This is the biggest demon of them all. If you’ve sold your soul for a flashy car, designer handbag, or plasma TV, debt was your trade-off. You now have to suffer the hardship of trying to pay it off, as the interest charges snowball into ever-larger balances. Whatever you do, don’t ignore it—inaction will only make this ghoul more powerful and terrifying. Commit to paying it down, and do whatever you have to do to make that happen: give up your cable, go on a spending fast, eat beans, work a second job—you get the idea. And resolve to never, ever, ever let it into your life again.
Habit. This ghost is so pervasive, you may not even recognize it. But it can wreak havoc on your wallet, draining its contents for things like cable, mobile data plans, premium brands, overpriced insurance, and unnecessary services that you’ve already set up, or have become accustomed to. To get rid of this ghost, you’ll need to question all the recurring expenses in your life—just because you’ve “always” had cable, do you really need it? Can you lower your premiums by switching insurance companies? Does the grocery store down the street have better prices than the one you’re “used to?”
Guilt. This ghoul deviously disguises itself as gifts and generosity, usually meant to “make up for” some kind of transgression or lack of attention. It fuels spending on jewelry by straying husbands, toys by overworked parents, and lavish presents by friends who haven’t kept in touch as they’d promised. What the recipients really want, money can’t buy—and you can exorcise this ghoul as soon as you realize (and act) on that.
Indecision. If you’ve ever bought two of something because you couldn’t decide between them, or let extra money sit in a 0%-interest checking account because you couldn’t determine what to do with it, you may be haunted by indecision. It’s time to make some choices—waffling does little more than waste your money.
Ignorance. To get rid of this ghost, you need to get savvy! Don’t let ignorance be an excuse for poor financial decisions. Find out the best prices on the products you buy, and the services you need, and act accordingly. Learn the basics of investing, and how to get the best return on your money given your risk profile. Replace the words “I don’t know” and “I don’t understand” with “I’ll find out!”
Laziness. This ghost does a great job of protecting the others—because it takes real effort to change habits, make decisions, become financially-savvy, and save up for things instead of charging them. Exorcise this one, and you’ll have a much easier time destroying the rest. How to do it? By creating an action plan, and devoting the necessary energy and discipline to see it through.
Entitlement. If you’ve purchased a car, house, clothes, or electronics you can’t afford, better check under the bed for the ghost of entitlement. It’ll convince you that you “deserve” these things, and will encourage you to “fake it ‘til you make it.” It may even lead you to blame others when things go awry and you can’t make your payments. Foil this demon by ignoring the Joneses, living within your means, and only buying what you can comfortably afford with cash.
So while the kids are trick-or-treating this weekend, keep an eye out for ghouls and goblins of the financial kind. The sooner you recognize them, the sooner you can dispel them—and the less frightening it’ll be to open your next bank statement!
By Frugillionaire
I think frugality often gets a bad rap. Unfortunately, there’s a misconception that cutting costs means depriving oneself of the good things in life.
Not true! The practice of frugality itself can bring real pleasure, and enrich our lives in myriad ways. In fact, sometimes there’s nothing like a great deal, averted expense, or creative use of resources to make your day.
With that in mind, I decided to compile a list of my Top Ten Frugal Pleasures—please chime in and let me know yours!
1. Shopping my closet. I almost always find some forgotten “gem” in there that I can bring back into regular rotation.
2. Borrowing and lending things. Avoids the hassle and expense of ownership, and just gives me a warm fuzzy every time.
3. Borrowing books from the library. I’ve been doing it since I was a kid, but it will never cease to delight me that I can read a book absolutely free.
4. Finding a good coupon. Before I buy anything, I look online for an applicable coupon. When I find one (whether it’s $1 off or free shipping), I feel like I’ve scored a little victory.
5. Comparison shopping online. I’m not the type to drive all over town looking for a good deal, so I love that I can achieve the same result with just a few minutes on my laptop.
6. Reducing my utility bills. Call me geeky, but I get a little thrill out of using less kWh this month than last.
7. Tracking my expenses. I’m a bit of a data junkie, so I actually enjoy tracking my expenses and crunching the numbers each month.
8. Bartering. I recently traded some web design services for a tailoring job. It’s very cool to meet your needs without exchanging money.
9. Driving my non-status car. I love how my car makes no statement about my aspirations or net worth. A little mystery is always appealing.
10. Attending free events. I’ve met interesting people, expanded my horizons—and generally had a blast—going to festivals, outdoor concerts, and other community events.
By Frugillionaire
I sometimes wonder if game show contestants and sweepstakes winners really want the (non-cash) prizes they’re awarded. It seems like the mere possession of such things can make life unduly complicated (and possibly more expensive). I like to imagine how I’d respond if offered some of these “finer things” of life.
If it was free, would I really want…
An enormous McMansion. No, thank you. I’m a minimalist at heart, and would hate to have a bunch of rooms I never use. I’d also find the cleaning, maintenance, and utility bills overwhelming.
A fancy car. This gets a resounding “No!” I simply wouldn’t want the headache (or the insurance bills). I’m the type that parks a new car at the far end of the parking lot, and doesn’t start to relax until it’s at least three years old. Compound that with a fancy hood ornament and I’d go crazy.
Expensive jewelry. I’ll pass on this one, too. Even if it was free, I’d worry about losing it; and I certainly wouldn’t want to pay to insure it.
A designer wardrobe. I’d only accept it if it had no visible labels or logos. It’ll take a lot more than some free swag to turn me into a walking billboard.
A membership to a super-exclusive country club or spa. There are probably a million other things I’d choose to do before spending my day at such a place. I’m afraid it would almost feel like an obligation to go.
The chance to meet a pop prince or princess. Something tells me we wouldn’t have that much in common. And after the obligatory handshake and photo-op, I think things might possibly get awkward.
A giant flat-screen TV. I’d take it, but only in order to give it away. In the intervening period, I’d enjoy the extra attention from all the men in my life.
A new laptop, iPod, cell phone, or other electronic gadget. If I need one, I already have one. And if I already have one, the last thing I want to do is learn how to use a new one.
A year’s supply of [fill in the blank]. To be honest, it doesn’t sound like that much fun to have a year’s supply of anything.
An all-expenses-paid trip around the world. Yes, I’ll take that one. I’m frugal, not crazy. 
By Frugillionaire
 When we feel the need for a particular item, our first instinct is to run out and buy it. It’s all too easy to “solve” our problems (or satisfy our wants) with the swipe of a credit card.
What if we resisted that instinct for a day—a week—or even a whole month? I suspect we could significantly curb our spending, and add a nice chunk of change to our bottom lines.
I propose a “Make Do” Month, in which we try everything possible to avoid shopping. Let’s go into survivalist mode, and approach each situation with a “make do or do without” attitude. (If it helps, pretend some crisis has forced all retail stores to close their doors for the next four weeks.)
Here are some situations that may occur, and some money-free ways to address them:
1. You’re invited to a party or formal event. DON’T buy a new outfit! Chances are, you have something in your closet that will work. Nobody will know (or care) if your ensemble is brand new or ten years old…so don’t let an event that lasts only a few hours put a dent in your bank account.
2. Your friends are raving about a fabulous new book. Instead of heading to the bookstore, surf to your library’s website and reserve it. If you’re not first in the queue, they’ll notify you when it’s ready for pickup. If your library doesn’t have it (or you don’t want to wait), borrow it from a friend or family member.
3. A blockbuster movie hits the theaters. Wait until it comes out on DVD…this is a fabulous opportunity to practice delayed gratification. Read, take a walk, or go stargazing in the evening instead.
4. You’re accustomed to buying coffee, or going out to lunch. Consider yourself lucky, because you’re going to pocket a lot of extra money during your “Make Do” Month! Brew your java at home, and take your lunch to work—the extra savings alone will perk you up!
5. Something in your home breaks. Ahh, a great chance to show off your resourcefulness and creativity! If you can’t immediately buy a replacement, you may actually be inspired to fix it. Otherwise, try your best to do without the item in question. If your toaster breaks, use your oven; if it’s the hairdryer, go au naturel; if a button falls off your shirt, mend it.
6. A holiday or birthday occurs. Instead of a store-bought present, give the gift of your time or expertise. For example, present the recipient with a voucher for a massage, computer repair, or night of babysitting.
7. Your kids are clamoring for a new toy. Take the opportunity to explain to them what you’re doing—it’s a great way to introduce the concept of wants versus needs. If you intend to indulge them at the end of the month, turn the waiting period into a game: have a countdown, or give them a small “allowance” so they can save up for the coveted item.
8. You hear about a great new restaurant. Resist the urge to eat out by making a special meal at home (ideally, with what you already have in the pantry!). Prepare it as a couple (or family), serve on your best plates, and enjoy it slowly. Light a few candles, or put on some music, for extra ambience.
By turning such situations into saving opportunities, we can use our “Make Do” Month to pad our finances (or pay down some debt). And who knows…we may develop some frugal habits that’ll serve us well the rest of the year!
By Frugillionaire
 Let’s face it: consumer debt is one of the biggest obstacles to financial security. Carrying a balance on your credit card is a slippery slope: as finance charges accumulate, you slip deeper and deeper into debt—making it increasingly difficult to get your head above water.
What can you do to avoid this terrible fate? Adopt a Pay-As-You-Go lifestyle. When you cut credit out of your life, you’ll put an end to the vicious cycle of debt. Instead of enriching banks and credit card companies with your monthly interest payments, you’ll be able to focus on building your own wealth.
All it takes is a change in attitude, and shift in spending habits. Just follow these six Pay-As-You-Go Principles to dramatically transform your finances:
1. Save up for what you want. Don’t pay interest for instant gratification! When you buy something on credit, you’re overpaying for the privilege of having it immediately. Whether it’s a new dishwasher or trip to Disney World, make do without it until you have the cash.
2. Pay with cash. Cut up your credit cards, and use only cash—it’s the easiest and most effective way to put the brakes on overspending. It’ll also eliminate those expensive impulse purchases, since you’re unlikely to be carrying enough cash when the urge to splurge strikes.
3. Never carry a balance. If you must use a credit card (for example, to make an online purchase), pay off the balance in full each month. Carrying a balance is the worst blow you can deal to your personal finances—resolve to do everything in your power to avoid it.
4. Don’t finance a car. Make your car fit your budget, not the other way around. Instead of financing a flashy new convertible, save up your cash and settle for a used sedan. Until you have the funds, explore alternative transportation options like biking, public transit, and sharing rides with friends and family.
5. Borrow things instead of money. It’s always better to borrow an item, than borrow the money to buy it! Instead of running to the store the next time you need something (for example, a ladder to clean your gutters), ask friends or family if they have one to lend.
6. Rent seldom-used items. If you can’t find someone to lend you an item, consider renting it. If it’s a seldom-used item—like a camcorder, steam cleaner, or circular saw—it often makes better financial sense to pay for temporary use of it than to buy it.
By nature, the Pay-As-You-Go strategy makes you live within your means—because without credit, you can’t spend any more than the cash you have on hand.
Adopting such a plan will stabilize your finances and keep you out of debt. But if you really want to see results, take it one step further and live below your means. Embrace the challenge of living on less than your paycheck, and invest the remaining money. When you make interest work for you (instead of against you), you’ll be on the road to financial security!
By Frugillionaire
 Let’s take some time out today for a little inspiration (especially for those participating in the $100-A-Week Challenge!).
Here are ten of my favorite frugality quotes. Heed these wise words, and you’ll be well on your way to becoming a frugillionaire!
1. “Beware of little expenses; a small leak will sink a great ship.” – Benjamin Franklin
2. “He who does not economize will have to agonize.” – Confucius
3. “The safe way to double your money is to fold it over once and put it in your pocket.” – Frank McKinney Hubbard
4. “By sowing frugality we reap liberty, a golden harvest.” – Agesilaus
5. “Without frugality none can be rich, and with it very few would be poor.” – Samuel Johnson
6. “The way to wealth depends on just two words, industry and frugality.” – Benjamin Franklin
7. “Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” – Will Rogers
8. “We make ourselves rich by making our wants few.” — Henry David Thoreau
9. “Frugality is one of the most beautiful and joyful words in the English language, and yet one that we are culturally cut off from understanding and enjoying. The consumption society has made us feel that happiness lies in having things, and has failed to teach us the happiness of not having things.” – Elise Boulding
10. “If you realize that you have enough, you are truly rich.” – Lao Tzu
By Frugillionaire
 Can you get through the week on a single Benjamin? Join the Frugillionaire $100-A-Week Challenge, and give it a try!
If China’s frugal can live on 100 yuan a week (about $14 US dollars), this should be a piece of cake.
Let’s lay out some ground rules.
The $100 must cover all discretionary spending for the entire week. What’s included: gas, groceries, entertainment and dining out; and all miscellaneous purchases like books, clothes, toiletries, electronics, coffee, snacks, etc. (basically anything you can buy in a store or on the internet).
What’s excluded: fixed or monthly costs like mortgage, rent, utilities and insurance.
The fuzzy area: cable, internet and cell phone bills. I advocate including these in the $100 limit, as they’re discretionary by nature. However, if your three-figure cable bill would otherwise deter you from attempting the challenge, exclude it for now. (Perhaps this exercise in frugality will inspire you to cut the cable, or downgrade your cell phone or internet plan!)
All expenditures must be counted in the week they’re made (even if you use a credit card). In other words, if you charge an $80 sweater, the entire $80 counts towards that week (it cannot be split into weekly or monthly payments). That means you’d only have $20 left over for food, fuel and other necessities–so you’ll have to think long and hard over each potential purchase!
Most importantly, don’t stop after one week—try to keep the $100-A-Week Challenge going as long as you can. Do you think you can make it a month? Two months? Maybe an entire year?
Remember, nobody’s perfect, so don’t get discouraged if a weak moment or unexpected expense makes you fall off the wagon. Just get right back on with renewed motivation for the following week!
Ready to join? Post a comment and let me know you’re in—and please return with updates on your progress! I’d love to hear about your experiences, your successes (and failures), and the techniques you’ve devised to stay under the limit.
And by all means, spread the word: tell friends, family, your neighbors and colleagues at work. The more people on board, the richer we’ll all become!
By Frugillionaire
 All too often, we let money slip through our fingers without a moment’s thought—and then wonder where our paychecks have gone!
Impulse purchases may seem harmless…but over time, they’ll leave you with an empty bank account and a houseful of clutter.
The next time you’re tempted to whip out your wallet, play Twenty Questions before buying the item in question:
1. Why are you buying this particular item?
2. Does it make you feel sexy/cool/rich/hip?
3. Did you see it on TV?
4. Does your sister/best friend/next door neighbor have one?
5. Was it endorsed by a celebrity/talk show host/professional athlete?
6. Is it the latest trend?
7. Will it make you feel happy (and why)?
8. Will it improve or change your life in some way?
9. Would life go on as usual without it?
10. How often will you use it?
11. Will you forget about it after you bring it home and tuck it away?
12. Are you buying it “just in case” you need it someday?
13. How many hours will you have to work to pay for it?
14. Is it really worth all that effort?
15. Will you need to spend additional money to maintain it, clean it or insure it?
16. Will you have to buy additional accessories and/or parts for it?
17. Is it a waste of the earth’s resources?
18. Is it possible you might regret buying it?
19. Could you resell it when/if you tire of it?
20. If you walk away without buying it, will you even remember its existence in a few hours?
Asking such questions will help you become more mindful of your money. When you consider “why” before you buy, you’ll increase your awareness—and decrease the amount—of your spending.
By Frugillionaire
 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!
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