Guilt, savings, frugality and that darn $3 latte again.

I think for some people the small things are a step towards regaining control of their spending and living within their means. Making a conscious choice about spending that $3 on a latte is different than simply just spending because it’s habit.

The latte’s are a small step - something obtainable by most people. Trying to explain that making a conscious choice about buying the latte isn’t a simplistic black or white soundbite for financial gurus. There however is a psychology to small wins as well.

Dave Ramsey for example is aware that there is emotional aspect to money so despite logic he tells people to pay off their smallest debt instead of their highest interest rate debt. It’s a small win but it gives people hope.

Saving money by not buying latte’s can be a small win for some people even if they aren’t in debt. It can be empowering. It can be that real world mathematical example of how much they could have in savings and again give people hope.

I do think some guilt can be society driven. There’s a problem in this culture where people get upset if someone makes “too much money” or seems to enjoy life. Many people’s conversations are focused on the negatives or struggles in life instead of the positive. Guilt is not a simple topic.

Aiming for the big win can produce some great results but sometimes little things like being frugal can snowball into bigger and bigger wins. Is not buying the $3 latte the only way to get out of debt or put money aside for savings? No.

Everything is relative. Relative to your current income, relative to your debt (or hopefully lack thereof), relative to your savings, relative to how happy or unhappy it makes you, relative to your personality and life’s experiences. It’s individual. One person’s $3 latte can be the equivalent of someone else’s clothing purchases or even car or house purchase. It goes back to conscious purchasing and living within your means.

If you go to the definition of Frugality:

“Frugality is the practice of:
1. acquiring goods and services in a restrained manner, and
2. resourcefully using already owned economic goods and services, to
3. achieve a longer term goal.”

If you’re achieving your goals, what is wrong with frugality if it helps you get there? There is one fairly universal goal: the pursuit of happiness.

“Frugal: characterized by or reflecting economy in the use of resources” Money isn’t your only resource. If “common strategies of frugality include … seeking efficiency…” then frugality doesn’t have to just be about money, you can also be frugal with time. GTD & 4HWW anyone? Or even Ramit’s automating money flows is a strategy for frugality.

Frugality can be about saving money OR about guilt depending on the individual.

And no, I don’t feel guilty for buying $3 lattes.

Hilary

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