Comments on: Active, Passive, and Portfolio Frugality: Where Should One Start?

By: Leszek Cyfer

Leszek Cyfer — Thu, 09 Apr 2009 19:42:10 +0000

Maybe naming the types of frugality help somebody, but it is making simple things complicated.

What rings true for me, especially in the comments is the cheapskate/frugal thing. We live in neurotic times, and throwing things away is one of example of inability to stay calm and be here and now.

Well, to make a starting point it is okay to get rid of all the excess, the “stuff” that springs from whimsical buying sprees and is never used but instead crowds every corner and shelf.

But the things that we need, that we use, have to be sturdy, comfortable, nice and chosen for longevity of use. The good quality furniture, utensilia, clothes and tools can last for many, many years. And price is not representative of this longevity – as someone pointed out the really sturdy stuff is easiest to find in shops with used things.

Someone have said that the ‘sentimental’ people have it easier to keep things longer. I fully embrace this notion. Living frugal you are not surrounded by a throng of objects but a handful. It is easy to get into a relationship with nice, dependable, faithful things. You grow to like your unbreakable coffee mug, with delicate wear signs. It is your, recognizable, faithful mug that you would be sorry to part with because it served you for years and was a part of many happy and so-so mornings giving you strength to carry on…

And so what if someone calls you sentimental for that. It’s healthy, it’s firm, good, here and now, not neurotic ‘I have to have’ the newest, coolest latest, trendy stuff that everybody uses or happy people on TV use it.

Enough!

Keep only things that you like, that you are sure of and harbor good feelings for. The rest is a moneysinking quagmire of “stuff”.

Be sentimental :)

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Fri, 13 Mar 2009 06:59:17 +0000

Nice transition of the concepts. I agree with you on the upfront investment and long-term dividends of portfolio frugality . . . just set it up and forget it!

By: Diane

Diane — Thu, 12 Mar 2009 23:47:39 +0000

If you’re going to buy a new car, taking good care of it and keeping it running & reliable for 10+ years sounds like a good form of frugality to me.

I currently have a 3 yo van that I bought new for a great price. I take good care of it and I hope to keep it reliable for a long time to come!

I’ve done some things that qualify for each of your categories – changing out most bulbs for CFLs, insulating the water heater, using/wearing things longer, growing some vegetables.

My best advice for passive frugality is stay away from malls & stores unless you have a specific purchase in mind. I CAN go shopping without spending, but why? No point in seeing things that I like & want, but don’t want to spend money on.

Finding things to do at home that you enjoy is a good way to be frugal – gardening, walking the dog, grilling & eating on the patio, riding bikes, having coffee/tea & reading the paper on the patio all keep us busy & happy at home, spending less money than going out. (Yes, we like to be outside… we live in the South, so we can do these things nearly year-round.)

By: Chris

Chris — Thu, 12 Mar 2009 18:34:14 +0000

Dustin is right, I believe very few people who own rental property would agree that the rental income they receive is passive.

By: Happiness Is Better

Happiness Is Better — Thu, 12 Mar 2009 15:19:21 +0000

I’m not sure if I would income rental income as source of passive income UNLESS you have a property manager and they handle everything for you.

I enjoyed the post!
-Dustin

By: Mule Skinner

Mule Skinner — Wed, 11 Mar 2009 22:42:20 +0000

@Debbie M — I am intrigued by the idea of the ten-year-old reliable car. I think you are on to something here, although finding one that old that really is reliable might be a challenge.

I actually own a ten-year-old car that I bought new, and I can vouch that it is reliable. But it’s not for sale!

By: Mule Skinner

Mule Skinner — Wed, 11 Mar 2009 22:36:15 +0000

@EGD — I adjust the non-programmable thermostat; but I make other heating adjustments too. Doing so makes me go to the basement, thus getting some exercise on the stairs.

I had a programmable some years ago, but after the original battery wore out, I was never able to find a replacement that would last long, so I eventually switched back to a simple thermostat.

By: Craig

Craig — Wed, 11 Mar 2009 21:33:48 +0000

Once you can work on the active income, then you can concentrate on the passive income in all areas.

By: Carrick

Carrick — Wed, 11 Mar 2009 16:58:25 +0000

I know this was already discussed at length in another post, but I’m always surprised that people use “cheapskate” when they mean “frugality”, and that they use it like it’s a bad thing. I mean, what’s wrong with trying to save money? What’s wrong with wearing things out until you buy a replacement? It’s good for the environment, it’s good for your bank account… I’m not seeing any negatives here.

By: Todd

Todd — Wed, 11 Mar 2009 13:38:19 +0000

@EGD:
Programmable thermostats start at $30, at least where I live. And I’ve already saved many times that in less than a year.
It’s true that I could have just adjusted the old one manually, but I didn’t. And when you can make something “passive” that was “active,” and still save a bunch of money, why wouldn’t you?

By: EGD

EGD — Wed, 11 Mar 2009 13:09:28 +0000

“Active” frugality could also be described as turning down the thermostat manually instead of blowing $100 on a programmable one. I would like acknowledgement that non-programmable thermostats save money too, provided that you USE THEM.

By: KATY

KATY — Wed, 11 Mar 2009 12:46:32 +0000

Great post, – but the broken lid handle is dangerous, no?

By: Chad @ Sentient Money

Chad @ Sentient Money — Wed, 11 Mar 2009 11:14:40 +0000

A quick summary eveyone should take a look at right now.

By: Oskar

Oskar — Wed, 11 Mar 2009 07:27:08 +0000

Once again a very good post, passive frugality is often looked over, if you use the things you already payed for it is free! Even if the cost of replacing the TV or the Computer is small it is higher than the cost of using the old one a while longer…

By: Debbie M

Debbie M — Wed, 11 Mar 2009 02:06:21 +0000

My favorite kind of frugality is where you find a substitute that you like just as much as what you used to do, almost as much, or, better yet, even better. For example, I’ve had a lot more success and happiness buying ten-year-old reliable model cars than a three-year-old not-so-reliable model car. I find that thrift stores have more variety than malls do and are more likely to have my size. And I like buying things from bulk bins because I can buy exactly how much I want–if I want to try a recipe with an unfamiliar spice, for example, I can buy just the amount the recipe calls for.

I’d classify this method of frugality as passive because once you do the research or experimentation and make the discovery, the benefits keep coming indefinitely.

By: jan rowley

jan rowley — Wed, 11 Mar 2009 01:34:24 +0000

I love this post. You spell things out so they make sense. Like it would be stupid to not save money! Would like your opinion on Welch’s new “AquaJuice”. It is bottled fruit juice with 50% water added. I did a post on it Sunday. I think that is the most ridiculous waste of money. You want something lower in calorie? Try adding your own water!

By: Associate Money

Associate Money — Wed, 11 Mar 2009 00:37:53 +0000

Passive frugality is easiest when you are a sentimental person. You refuse to throw away items which are old but still functioning.

I remember my grandpa as the best representative of passive frugality. He will repair an old fan and television set instead of buying new stuff.

I am into a bit of all three actually. Portfolio frugality seems to be the most uncertain as my investments seem to be mostly kaput at the moment.

By: Kelly

Kelly — Tue, 10 Mar 2009 23:40:59 +0000

Great Post! I have been doing all three of these types of frugality and didn’t even know there was a name for what I was doing.

By: SJ

SJ — Tue, 10 Mar 2009 21:41:48 +0000

Great post!! The breakdown was nice and elegant =)

By: Kristen@The Frugal Girl

Kristen@The Frugal Girl — Tue, 10 Mar 2009 21:07:37 +0000

That’s a neat way of looking at this. Being the frugal nut that I am, I do a fair amount of all three types. That works for me, though, because I’m highly motivated to save money and reduce expenses.