Being Thrifty is Cool Again, or Is It

Posted on June 23, 2008 at 5:40 pm
Filed Under Financial Planning, Investment Planning, Retirement Planning

Many of us think of our “thrifty friends” as cheap or self pleasing. Maybe they are the smart ones though.

I know that I used to have a very negative view of those people I would call thrifty, but I’m starting to think they knew something I didn’t. Of course it is possible to go to far to one extreme and make thriftiness a characteristic that hinders relationships, but I don’t think that is the case for everyone. If you look up the word “Thrift”, the Canadian Oxford dictionary defines it as “prudent financial management.” I can’t help but think that I would have no problem with my friends using that definition to characterize me.

An article was recently wrtten in the Financial Post and stated that many of us are “just two paycheques away from bankruptcy”. If that’s the case, what’s wrong with being thrifty if for many the alternative is bankruptcy in the case of an unexpected illness, injury or loss of job?

Your Take-Away: I know for myself that learning to be more thrify is something I will take very seriously. After all, I don’t believe that means never having any fun, staying locked up with the lights off to save energy, or even giving up on creating memories for the purpose of saving for the future. Instead, I take that as a challenge to simply save first, and spend second without using credit to do so. After all, almost every one of us could afford to put a small percentage of our income aside, if we really wanted too and if we created the right habit.

So, my suggestion is to seriously take a look at where you are, where you want to be, and how your spending habits match your goals. More often then not, you will probably find that your spending habits say something entirely different then your “assumed spendind habits”. Maybe now is the time for you to consider answering the question “What does thrift mean to me?”

Until next time, have a Magnificent Monday.

Chris & Elisseos

Bookmark to: