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Steve Covey’s book 7 Habits of Highly Effective People has taught people how to live more satisfying lives. One of the core habits is that of taking responsibility for your own life by being proactive: you are always free to choose your response. The others include beginning with the end in mind, putting first things first, thinking win-win, communicating, synergising and sharpening the saw. Moneyning.com applies these habits to frugality in 7 Habits of Highly Frugal People.
Being proactive for effective frugality
Take a good look at your financial situation so that you know where your money is coming from and where it is going to. Work out a budget and tell people that you’re pursuing a more frugal lifestyle. If you’re spending more than you should, listen to yourself and your reasoning. Don’t let yourself make purchases you shouldn’t as this will impede your goals.
Frugality and beginning with the end in mind
Moneyning.com states that you must define your goal: ‘there are many ways to live a frugal lifestyle and you need to decide on how frugal you want to be. Do you want to be debt free, do you want to build a savings account balance?’ Once you know what your goal is, you can plan how you’re going to achieve it.
Putting frugality first with ‘first things first’
Make being frugal your top priority and learn to say no: ‘It is easy to spend more than your budgeted amount each month when you are worried about missing out on a dinner with friends’ and so on. But if you learn to say no and that you don’t have to take on the world, ‘then you will find you are more in control of your spending and your budget.’
Win-win, communication and synergy
Instead of trying to keep up with the neighbours, ‘understand the difference between possessions and net worth’ because assets are the measure of true wealth, not possessions. Put your money into creating a strong net worth rather than into a life that is ‘full of stuff.’
While it’s important to explain your wish to live a more frugal lifestyle to your significant others, it’s also important to understand their goals. Find a way forward that allows for frugality but without your loved ones having to give up important needs.
‘Surround yourself with other frugal people,’ continues moneyning.com. Create synergy by sharing your frugality lifestyle with others. Learn from others too, for example: ‘strike up a friendship with the woman who runs your local op shop.’
Sharpen the saw of frugality
Moneyning.com advises to sharpen the saw by renewing yourself physically, emotionally, mentally and spiritually. ‘Frugality does not mean having to give up all the luxuries and things which make you happy because if you go through developing habits 1 to 6 without spending the time to renew yourself this is how you burn out.’
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