Frugal Pinoy

In this blog, we keep talking about being frugal without actually defining what it means. It’s about time we did.

What is frugality? Is it about buying the cheapest products? Is it about cutting corners everywhere? Do you have to save a lot of money to become frugal?

Frugality isn’t about price or numbers alone. It’s about getting the best value for your money - whatever it is you’re spending it on.

Some examples of NOT being frugal:

• If the cheapest toilet paper is P6.00 a roll, but it keeps breaking and doesn’t absorb as much, that’s not frugal.
• If the cheapest make up makes your skin itch or isn’t the color you like, buying it is not a frugal choice.
• If your health is important to you and you keep buying and eating instant noodles every day because they are cheap, then you’re not getting the best value for your money. Eating instant noodles too frequently is unhealthy (mostly because of the MSG and the wax in the noodles).

Some examples of being frugal:

• If you realize that buying your favorite brand of soap is cheaper in the long run if you buy it in bulk, then that’s what you do.
• If you want a new camera, instead of buying the latest model, you shop around for models that are a year or two older because they’re much cheaper now.
• You buy used books instead of brand new books because you know they’re going to have the same words and pictures anyway and the only difference is that the used book doesn’t look as shiny and new (but it’s still ok).

(If you want to read more about ‘frugality vs. being cheap’, Fitz Villafuerte has written an interesting article on the subject, with matching scenarios you can think about.)There’s also another thing you have to consider when taking frugality into account: time and convenience. Both these things play an important factor when you’re faced with spending decisions. Here are some examples:

• Although I can walk to my house from the jeepney terminal, I choose to spend P 17.00 on a tricycle ride because it is very hot outside and I need to save my energy because I still have to work when I get home.
• When we bought our scooter, we could’ve bought it at a lower price (by P 2,000), except the cheaper alternative did not have complete registration papers and was a little farther from our house. We opted for the more expensive unit that the seller actually brought to our home (which was important, because we don’t have licenses yet).
• Groceries at Pure Gold Cubao are the cheapest I’ve seen, but it’s an hour away from my house and I don’t have a car to load the groceries in (I have to carry them myself going home). Instead of making things harder for myself, I shop at a nearer grocery which is also cheap (not as cheap as Pure Gold, though) but without the hassle.

When factoring in time and convenience with your purchases, consider these questions:

How much are you willing to ‘pay’ to make a more convenient purchase? How much are you willing to ‘pay’ to make the purchase ASAP?

In the cases I illustrated above, I was willing to ‘pay’ P 17.00 to avoid the heat of walking under the sun and to conserve my energy. For the scooter, I was willing to ‘pay’ P 2,000.00 more for a delivered product with complete papers. I’m also willing to pay an extra 25 centavos to 5 pesos per item of grocery for the convenience of having the grocery near my house.

Frugality is getting the best value for your peso. That’s it. You’re the one who defines what ‘value’ is. Is it convenience? A speedy purchase? Is it quality? For me, it’s a little bit of all of that. If I can get an item cheaper without sacrificing too much time, convenience, and quality, then I go for the cheaper bargain.

Edited to add: After I posted this article, I saw this great post from QueerCents about what frugal living is all about.  It’s very similar to my personal values, so I think it’s a good resource to supplement what I’ve written here.  Click here to read 5 Steps to Prosper at Frugal Living.

How do you define frugality? Do you think you’re frugal?

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This entry was posted on Tuesday, June 17th, 2008 at 12:00 am and is filed under Frugality. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.