6: How to Develop a Frugal Mindset: Frugality Definition

Do you want to develop a Frugal mindset?

In this episode, I'm going to define frugality for you, and give you four steps to become more frugal, and develop a mindset that will help you save more money and spend money wisely.

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Episode Transcript

Speaker 1 (00:00):
Welcome to the Frugal Entrepreneurs podcast. I'm Miles, and today
I'm going to tell you how to develop a frugal mindset,
and I'm going to define frugality for you in my
own words. And before I do that, I want to
encourage you to subscribe to my newsletter. Check out the
link in the description where if you subscribe to my newsletter,

(00:21):
you're going to receive resources every week that help you
save money and make more money and be more productive
in your business. Okay, so now I'm going to define
frugality for you my own words. Why Well, because living
frugally will help you make more money, invest wisely, retire,
and live a life spending money where it matters. Now,
let me give you my first thoughts about frugality. Frugality

(00:43):
is a constantly evolving mindset. At least it has been
for me, but it's arguably different for everyone. I say
this because I know naturally frugal people and I know
people with no sense of frugality whatsoever. With that observation
out of the way, let's talk about the steps you
can and take to develop a frugal mindset. To start,

(01:03):
you need to become a conscious spender. Conscious spending means
that you carefully consider everything you purchase. Heck, if you're
a truly conscious spender, you may not even need a budget.
Here's a simple exercise that can help you become a
conscious spender. Simply write down what matters to you. Write
down what you value, write down your dreams, write down

(01:25):
your priorities, write down your needs. You'll never be a
conscious spender if you don't know what you value or
truly want in life. And naturally, you have to write
down your needs and bills because those are default. But
that doesn't mean you can't optimize them, which brings us
to the next step. The second step in becoming frugal
is to optimize everything important in your life that relates

(01:47):
to wealth. You can look at this as your frugal foundation.
Building and optimizing your wealth involves managing your bills, investments, assets, liabilities,
accounting system, eating habits, drinking habits, shopping habits, and anything
else in your life that involves money. Building this foundation
doesn't happen overnight, of course, but it can happen sooner

(02:09):
if you take advantage of helpful financial resources. One of
my favorite books for building your financial foundation is run
Sati's book called I Will Teach You to Be Rich.
Look it up if you want to develop your financial
foundation with a simple six week program. It's a great
example of a practical, effective resource, and this brings us

(02:31):
to the next step. The third step in frugality is
to never stop learning and always do your research. Technology,
the economy, and the way people spend money are always changing.
That's why it's important to stay informed. My favorite resource
for staying informed is the Clark Howard podcast and his
website Clark dot com. Heck, he's so helpful and smart

(02:54):
that he made it on to invest a Pedia's top
ten personal finance podcast. Howard talks about consumer trends, investing,
financial literacy, buying a house, buying a car, and every
other personal finance subject under the sun. That's my favorite
financial resource, but there are plenty more out there. You

(03:15):
just have to seek them out, but be careful. There's
a lot of bad financial advice on the internet. On
top of this, there's a plethora of financial product marketers
that sell garbage. This includes certain insurance people and MLM schemes.
With that out of the way, let's move on to
the final steps. The last step in building a frugal

(03:37):
mindset is to stay true to your financial principles. Once
you become a conscious spender, optimize everything important related to
your financial slash frugal foundation, and build a habit of
never ending learning. You'll need to stick to your principles
and only veer away from them if there is a
more logical path forward. Here are some examples of frugal principles.

(04:01):
One shamelessly say no, especially to salesmen. Two, be resourceful.
Three remember that you worked hard for your money for
use it or lose it. And some of my favorites
from raw Meat Safety are One ask thirty thousand dollars
questions and not three dollars questions. Two negotiate, and three

(04:26):
spend extravagantly on the things you love and cut costs
mercilessly on the things you don't. So what can we
learn about frugality? Frugality is a mindset, and you can
build a frugal mindset by becoming a conscious spender, optimizing
everything fundamental in your financial life, always learning, and staying

(04:49):
true to your principles. Do this and you'll become a
logical spender with plenty of money to spend on the
things that truly matter to you. Thank you so much
for listening. Subscribe to the Frugal Entrepreneurs podcast for more
episodes about saving money and making money and building up
a business that could change your life, and tell your

(05:12):
friends about the show and rate it. Thank you once
again for listening. You're awesome and I hope you have
a good day.