The
Rules of
Frugality
Shave the cost of warranties
Many consumer advocates say you should skip
extended warranties on appliances, which can
cost as much as $300 per appliance for five years
of coverage. If you feel you must have a warranty,
consider a package deal. GreenUmbrella.com,
for example, charges $9.95 a month and covers an unlimited number of appliances for up
to four years from their purchase date. All Six
Warranty ( allsixwarranty.com) provides coverage for six major appliances, regardless of age,
for $19.95 a month, plus $50 per repair (with a
lifetime coverage limit of $1,500 per appliance).
If the appliance can’t be fixed, GreenUmbrella
may reimburse you for the original purchase
price, whereas All Six will replace the product
with a comparable new model.
Don’t give up
the things you love.
Thriftiness should never
outweigh happiness. It can
lead to happiness, however,
by helping you save for
the bigger goals in life that
you’ve dreamed about.
Find inexpensive
ways to enjoy what’s
most important to you.
You don’t have to own the
books you read or the
movies you see. There’s
plenty of free music on your
radio and computer. Public
golf courses require no
membership.
Cut back on
anything not crucial
to your happiness.
If you’re not defined by
the clothes you wear,
give thrift shops a shot.
Gourmet food may be
central to your existence,
but you can cook it in
low-cost pots and pans.
Never go
shopping without
knowing exactly
what you’re getting.
Don’t even enter a store
without a plan, or you risk
purchasing something you
don’t need. And it’s the
things you don’t need that
sacrifice your dreams.
Use the “30-Day
Rule” for purchases.
Jot down the item you’re
considering on a piece
of paper, then give yourself
a month to think about it.
Use the time to find it at
the lowest price—and to
ask yourself if you truly
want it. If so, go for it.
Adapted with permission of
FT Press, an imprint of Pearson.
