In a recent spin off from Stephen Covey’s critically acclaimed book, 7 Habits of Highly Effective People, personal finance writer Alban from moneyning.com, noted 7 Habits of Highly Frugal People which covers Covey’s overall theme of changing your attitude in order to change your life.  We’re all aware of the recessions’ claim on jobs and finances across the country, yet there comes a point when we need to take back control.

Although it may seem out of our hands, the outlook we have on our finances can have a profound impact on our lives.  If you feel that you are continually living week to week; it’s time to start looking at your day to day habits.  Each days’ choices, although seemingly small, will affect our finances.  It’s up to you to determine whether that effect will be negative or positive.  Let’s take a brief look at 7 basic habits of highly frugal people.

Habit One: Be Proactive- You are in control-  No matter how you were raised or the size of your paycheck; how you spend your money is your choice.

• Take the First Step- Commit to take control of your finances.  Ignoring issues will not make them disappear. Instead gather your budget, monthly bills and income in order to determine where your money is going.

• Tell People- Let others know your goal to be more frugal.  This will not only help you hear your own goals out loud, but will offer a way for accountability.

• Listen- Each time you give an excuse for a purchase that is outside of your budget; stop and listen to the excuse.  Does your reasoning make the purchase worth getting off track of your ultimate goal?

Habit Two: Begin with the End in Mind- Creating a clear vision of the end result will enable you to more easily overcome obstacles.  You will less likely be swayed from your goal by outside sources.

• Define Your Goal – How frugal do you really want to be?  Is your desire to be completely debt free or to focus more on building up your savings?

• Decide How You’re Going to Get There- Determine the obstacles that are standing in your way and how you will overcome them.  Whether the obstacles are outstanding credit card debt or your habits; recognize the problem, come up with a solution and stick to the plan.

Habit Three: Put First Things First- Make your financial goals a top priority and stay motivated by remembering your reason behind your goal.  Putting your financial goals at the top will help you rearrange your lesser priorities around your main goal. This will bring your goal to fruition.

• Recognize the effects of your finances- You may not feel that you have time to manage your finances with life pulling you in many different directions.  However, it’s important to remember that if you are falling behind on bills and not managing your finances well- everything else will begin to suffer.

• Just say no- Learn to deal gently, but firmly with friends or relatives who are asking you to join in on activities that costs more than your budget allows.  You don’t have to do it all.  Practice saying ‘no’ until you have more control over your finances.

Habit Four: Think Win-Win- Consider each situation you find yourself in a win-win.  The worst thing you can do if you have to turn down dinner with friends or a weekend getaway is to begin thinking how unfair life your life has become.

• Recognize You Don’t Always Know the Full Story- Looking at all the things or privileges others have may make you wonder why you can’t be there as well.  Yet, you may not know how long it took them to get to that point or what they had to give up to be there.  Eventually, you can reach those goals if you stay focused.

• Understand the difference between possessions and net worth- It may appear that others are far better off than you, yet keep in mind that possessions are not the determining factor.  True financial wealth lies in your net worth, not in the car that you drive. Anyone can go into financial debt to gain things, however true wealth lies in having the money in the bank and making wise purchases with the money you already have.  This is a much more stress free way to live.

Habit Five: Communication- Remember that communication is a two way street.  In order to be understood by someone else, you have to first be willing to understand others.  Listen first, then speak.  This will help you better meet your financial goals as look at the following:

• You are not the only person in your life- Whether you’re in a relationship as a spouse, parent, guardian, etc… your financial decisions will most likely affect someone else.  Do not require someone in your life to be frugal without being willing to follow the same guidelines.

• Understand the goals and needs of others- Living a more frugal life requires being in tune with those around you.  You need to be willing to listen to others goals and make sure that your financial goals do not force them to give up the things that are most important to them.  This may require discussing a middle ground, but hearing each other out is key.

Habit Six: Synergize- Purposefully connect with others who will have a positive influence on your goals and build a teamwork environment for reaching them.  This will allow you to have a support system as well as gain new insights.

• Look for new ways- Always be on the lookout for new ways to save.  Whether it’s packing a lunch or carpooling to work; there is always a way to cut back on costs.

• Surround yourself with other frugal people- Connect with others who have the same goals of frugality.  Share ideas and team up to reach your goals.

Habit Seven: Sharpen the Saw- We are made up of four aspects: physical, emotional, mental and spiritual.  When you feel that you have succeeded in the following six steps; it’s important to keep sharpening yourself within these four areas.

• Physically- Eat better and exercise, and you will being to feel better in every area of your life.   Save time and money by growing your own vegetables instead of buying them at the store.  Exercising at home or outside can save you hundreds of dollars spent on a gym membership.

• Emotionally-Social interaction is vital for our well being.  Being around those you love and your support group for your financial decisions will reap emotionally satisfying benefits.

• Mentally-   Expand your mind by taking free classes or seminars offered through your local library.  Teach others skills through a volunteer program at a school or community resource program and challenge your mind to explain skills in a different way.

• Spiritually- We all long to fill a void in our life that can only be done through quietness, prayer, meditation or through avenues such as music, nature or art.  The spiritual realm can be achieved frugally and is vital to our well-being.

Living a frugal life is not void of fun or luxury.  It is recognizing your budget and being willing to stick to daily goals in order to achieve your overall goal.  Frugal living is a learning process at times, but one that, when done right, will last a lifetime.

If the next step in your financial goal is buying a home in the Tampa Bay area; please let me know.  I have worked as a Tampa Bay Real Estate agent for years and can help you through the entire home buying process.  Please feel free to contact me anytime- I look forward to hearing from you!

Brenda Wade
www.BrendaWade.com
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