There are many things that are important to us. Some are more important than others. Once we have learned good financial practices, we should keep doing them over and over again. When you find what works, it is always wise to keep such a program implemented. Following a system is a wise practice. It enables one to sort out what works and what does not.
What is frugality? "Frugality" according to Noah Webster’s 1828 Dictionary is "prudent economy; good husbandry or housewifery; a sparing use or appropriation of money or commodities; a judicious use of any thing to be expended or employed; that careful management of money or goods which expends nothing unnecessarily, and applies what is used to a profitable purpose; that use in which nothing is wasted." One can hear the old saying waste not, want not.
Prudent is cautious wisdom. Frugal people do not put their money in speculative investments. They would be more prone to try and make money in tried and true ways. In the above definition, there is not a negative to be found. You see the words, prudent economy, good, sparing use or appropriation, judicious use, careful management, expends nothing unnecessarily, profitable purpose and nothing wasted. The frugal person is a wise man.
Webster renders an "accountant" as "one skilled in mercantile accounts; more generally, a person who keeps accounts." Mercantile accounts are business accounts. An accountant records financial transactions. Accountants use what is called double entry accounting. This is what keeps the financial statements in balance. At a very basic level, the two statements that will be used here are the Balance Sheet and the Income Statement.
The Balance Sheet is comprised of three parts, Assets, Liabilities and Net Worth. Net Worth is the residual between what you own (assets) and what you owe (liabilities). Net Worth is what you actually own free and clear of any claims. The Income Statement records revenues and expenses to arrive at net income or net loss. This statement allows you to assess where your money comes from and where it is spent. It allows you to see if you are operating in the black (good) or whether you need to declare bankruptcy (red).
A frugal person is one who operates their financial affairs cautiously and judiciously. They have maintained meticulous financial information by keeping accurate records. They know how much they spent on each category. They are wise in not spending more than they earn. If they want to spend more money, they find ways to make more money.
It is a well known fact that the majorities of businesses fail because of poor management. The first businesses were households. Businesses are based off of the model of households. One of Webster’s definitions of manager is interesting. It is "a person who conducts business with economy and frugality." Proper management training takes place within the family. One who learns how to manage assets and control spending, in a household, will be qualified to do the same when conducting an outside business.
Good managers economize and are frugal. They pay attention to the smallest of details, realizing that the smallest can eventually add up to the biggest. They watch the bottom line known as net income or net loss. A good manager knows that some things are beyond his control and that the unforseen can and does happen. Since he has been judicious in his affairs, he will have the necessary assets to meet these emergencies.
Good managers follow Romans 12:11, "Not slothful in business; fervent in spirit; serving the Lord." If you are not to be something, then you are to be its opposite. Slothfulness is sluggishness, being idle or laziness, slowness or being tardy. Paul is encouraging us then to be earnest and diligent in the affairs of life. A good manager will be all of this. They are characterized by their resolve to accomplish the task until it is completed. They are reliable and their word is solid.
Being a frugal accountant is first and foremost a spiritual enterprise. Ethics do matter. Substance is more important than form. We all want to be financially successful. One cannot be financially successful by not learning the rules that govern success. This is why this discussion began with the idea of instituting a system. With it you are guaranteed financial prosperity.
Deuteronomy 29:9 reads, "Keep therefore the words of this covenant, and do them, that ye may prosper in all that ye do." Financial prosperity can only be achieved upon keeping God’s ethics. Not only knowing what these ethics are but also applying them will bring about the desired results. Financial prosperity is defined as having all of your physical needs met. Usually, this also means that you have in excess of your needs supplied because of being wise in financial matters.
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