The

Frugal Lifestyle

Financial Mitigation of Risk  

A Future of Sanity & Wealth

ZERO DEBT:

**Owe no man or institution anything. 

Easy credit equals over consumption along with paying interest.  Don’t believe this is true then why are there multiple self storage facilities near you?

**If you cannot afford to pay cash, you cannot afford to buy. 

This keeps spur of the moment purchases at bay whether large or small.

BUY INTELLIGENTLY:

**Give every dollar a job before it leaves your hand. 

In other words – budgeting – with today’s technology (example: Ramsey’s Every Dollar App.) making this effort so much easier.

**Buy real estate during economic downturns.

Buy only when the Price to Yearly comparable Rent is less than 10 to 1.  When the economy recovers you’ll have a gain in house value not leaving you under water if you have to sell. 

Pay cash.  If not; significant down payment 30% to 50% using a fixed 15 year mortgage and possible 10 year fixed mortgage if the down payment is large enough.    

**Buy it used when ever possible. 

This is especially true for cars or trucks; it is well known for fast depreciation buying in the 5 to 7 year old category is the sweet spot.  Drive the vehicle until the wheels fall off then have it fixed (if possible) before you replace it. 

Clothing especially for children of young age going to thrift shops is a God Send for savings. Use it up, wear it out, make it do, or go without; waste nothing!

Shop thrift stores, estate sales, retirees downsizing for furniture many time you can buy very high quality items at substantial discount as compared to new.  

**Fill the pantry when prices are cheap.

This is especially true for dry goods when you catch the 2 for 1 sale.  Or long lasting can foods and buy a deep freeze purchasing meats and vegetables on sale.  

**Buy quality once and keep it forever.

Buy cheap and you’ll end up buying multiple times over.  Buy when bargains are available for high quality items and then keep it for as long as possible.

**Buy Christmas presents in January.

The sales come out after Christmas.  Have your list ready (and a place to hid those gifts till next Christmas) and buy the bargains.

SAVINGS and INVESTING:

**Emergency Fund:

The old adage of 3 to 6 months no longer applies in today’s world of change.  A one year worth of expenses is required.  It is difficult but nor is it impossible if you’re debt free and maintain a frugal lifestyle.  Cover the estimated costs for the core basics; food, shelter, utilities, and transportation. 

**Keep your emergency fund for actual emergencies. 

Know the difference between an actual emergency compared to an emotional desire of the moment.  Enough said!

**Pay yourself first.

With computerization setting up automatic savings and investing has never been easier than today!

**Live on one income.

This is possible despite all of the social media telling you how impossible it is today.  No doubt you must be motivated (if you came to this blog I assume you are) using the frugal lifestyle, if possible live on the spouse with lower income save and invest the higher.

**The two rules of investing.

Rule of number one: Don’t lose money.

Rule number two: Don’t forget rule number one.

Understand and apply valuations to the investment process thus significantly reducing long term sub par returns or losses.