FRUGALITY IS THINKING AHEAD

One thing that man cannot evade is objective reality. It has a way of crashing in on us at every turn. People today are receiving a jolt of reality by rising food prices. They are having to make adjustments to this new reality. Many of them apparently did not have a budget in place. They probably did not shop with a list (using a list prevents impulse shopping). They are probably deep in debt.

I have written previously on having a financial system. Having a financial system means that you have planned ahead. Prices on products are relative. They fluctuate because of the law of supply and demand. The cornerstone of a financial system is the budget. One has to live within his means. Living beyond your means is not wise because it is trying to live on what you have not yet earned.

Making a budget requires that you make adjustments as time goes on. Usually, our income is fixed. This means that it does not fluctuate like prices. One has to adjust their budget to fluctuating prices. Since we have to eat and if food prices are rising, what has to happen is to either forgo some purchases or cut out something that is not essential. This requires monitoring your budget. With limited funds, something has to give.

When you hear someone say that they are having financial problems, you will invariably find that they are spending money on luxuries. They usually do not have a budget, so they are unaware of how much they are spending. All that they know is that they are spending more than they have. Having a budget and a financial system requires thought. This is where people get into trouble. They refuse to expend any mental effort in understanding finance and mastering it. Finances and reality end up mastering them.

A quote from a newspaper article makes my point. "Restaurant meals are now almost a luxury." Almost a luxury? No, restaurant meals have always been and forever will remain a luxury. A luxury is something that is not a necessity and restaurant meals are not a necessity. Restaurant meals are a luxury and a convenience. For what you spend on a restaurant meal for a family of four, usually $60 including tip, you could buy a lot of groceries.

Eating is not optional. It depends upon where you eat your meals. Someone who eats at home is someone that is living within their means and someone who understands that eating out is a luxury. Eating out should be saved for and part of a budget to be used for special occasions. This approach is properly classifying a restaurant meal as a luxury. A lot of families eat out when both spouses work. Usually, the wife is to tired to cook and it is easier to go out and eat. This financial decision does not come cheap in comparison to eating at home.

Having meals planned ahead, will also minimize the desire of eating out. This requires forethought. For one to save money, they must first understand the concept of saving. The spiritual precedes the action. Concepts are spiritual. The spiritual have plans or forethought in place. When tough financial times come, the frugal are prepared. It matters not whether the times are good or bad, they are frugal in either case.