Comments on: Review: The New Frugality

By: Brian

Brian — Fri, 18 Jun 2010 18:18:16 +0000

I also enjoyed the book for a lot of the reasons Trent mentioned.

The biggest part of the book that really stuck with me was his advice regarding getting involved in what you are passionate about ASAP, even if it is only for a small amount of your time (or money). He gives examples of people who waited until they were retired to get involved and then they were frustrated when they couldn’t make an impact because they lacked the experience/knowledge/connections to really help out beyond envelope-stuffing type activities. He points out that finding the time NOW to get involved will allow you to have the opportunity to make a BIG difference later when you have more time/money. And as Trent pointed out, keep it simple. Find the one thing you care about and get involved.

By: John Mark Ockerbloom

John Mark Ockerbloom — Tue, 15 Jun 2010 10:46:09 +0000

On the public radio nitpick: Marketplace is produced by American Public Media, not NPR; however, most of the stations that air it also
run NPR programming, so they’re often informally referred to as “NPR stations”. But APM and NPR are two different organizations.

Many US public radio stations carry a mix of programming from NPR (All Things Considered, Morning Edition, etc.), APM (Marketplace, A Prairie Home Companion, etc.), and Public Radio International aka PRI (This American Life, Tavis Smiley, etc.)

By: Pat Chiappa

Pat Chiappa — Tue, 15 Jun 2010 02:11:08 +0000

Trent, I know you’re a fan of Vicki Robin and “Your Money or Your Life”. My husband, Mark Zaifman who is a financial planner, was a contributor to the updated book – he updated Chapter Nine, the chapter on investing.

Mark went out on the book tour, along with Vicki and Monique Tilford, Vicki’s co-author, and at each book signing he shared a comment from a friend who is a book buyer, “frugal is the new black.”

I love that frugal is not only no longer tacky, but that it’s hip. Long live the frugalmeisters!

By: Pat Chiappa

Pat Chiappa — Tue, 15 Jun 2010 02:05:54 +0000

I love that frugal is not only no longer tacky, but that it’s hip. Long live the frugalmeisters!

By: TeacHer

TeacHer — Mon, 14 Jun 2010 23:54:38 +0000

Marketplace is definitely NPR.

(In my quest to pay off cc debt, I got rid of cable and spent a ton of time listening to the radio. Marketplace was one of my favorite programs!)

By: Jimmy

Jimmy — Mon, 14 Jun 2010 22:33:53 +0000

Just as a correction I beleive marketplace is by APM and not NPR.

By: Starving Student Survivor

Starving Student Survivor — Mon, 14 Jun 2010 17:30:48 +0000

Don’t forget the cost of the health impact. I see moms post pictures of 18 boxes of Hamburger Helper they got free with coupons, but will eating that much processed food zap your energy and send you to the doctor more often? If so, it’d be better to spend a little cash for fruits & veggies.

By: Jay Banks

Jay Banks — Mon, 14 Jun 2010 17:08:04 +0000

I have noticed the boom of ‘frugal blogs’; it’s interesting reading many times, but sometimes I feel that this ‘new frugality’ is taken to extreme. People, we have some 75 years of life scheduled, when will be finally the time to enjoy it? First we save money for school, then for family, than for retirement, then for funeral… Sometimes I just enjoy breaking the frugal rules!

By: Nimrodel

Nimrodel — Mon, 14 Jun 2010 16:54:43 +0000

Re: Prestigious schools, I think the very top ones are definitely worth it. I graduated from MIT recently, which I had a pricetag of something like $40,000 per year. However, after the financial aid I graduated with only $20,000 or so in student loans. Additionally, companies recruit *very* heavily from top schools, and offer higher salaries because people from the top schools are in such high demand. The starting salary for someone graduating with a computer science degree from MIT last year averaged around $72,000; the average salary of a software engineer in Boston is only around $60,000. Pretty significant.

By: Consumermiser

Consumermiser — Mon, 14 Jun 2010 16:50:54 +0000

Nice article on the “New Frugality” which may describe a new phenomenon, but is really based on old concepts of frugality. I hope more apply these basic concepts, because I think it will benefit them financially, they will be happier in the long run, and we will consume less (and share the planet more).

By: Sandy L

Sandy L — Mon, 14 Jun 2010 14:25:58 +0000

I second #6′s comment. The school that offered me the most financial aid had one of the highest tuition rates. It was actually cheaper for me to go to the private university vs my state school. Apply to the best schools and make your decision when all the facts are in.

The networking abilities you get from going to a prestigious university are certainly worth paying a premium for.

I love NPR and it’s contributors. They are one of my favorites places to give.

By: Bindu

Bindu — Mon, 14 Jun 2010 14:03:08 +0000

The only point I disagreed with was the comment about Harvard for two reasons. First, depending on your goals, a “name brand” education can do wonders for you. It doesn’t replace hard work and tenacity, but it can get you in the door or help you skip several steps to reach your goals. I did not go to Harvard but I know that my job prospects would have been a lot greater if I had in my field. On the other hand, I admit that if you know that you are going into a field with low income potential, it doesn’t make as much sense to spend extra money for the name brand.

Second, Harvard provides grants to any student who would otherwise require a “need-based loan” to attend the university. See this link:
http://www.fao.fas.harvard.edu/icb/icb.do

By: John Mark Ockerbloom

John Mark Ockerbloom — Mon, 14 Jun 2010 13:49:23 +0000

The thing about Harvard and many other prestigious schools is that their tuition for most people *isn’t* the “sticker price”. Because of the size of their endowments and financial aid budgets, they’re really charging on a sliding scale based on how much they think you can afford to pay.

The amount can vary at different institutions– not everyone can cover the full extent of student “need”, and not everyone calculates need the same way– but a lot of the top institutions are pretty generous to folks who can get in. Some of the top institutions give all their aid to lower and middle income families in the form of grants, for instance, instead of loans like they used to. And most of the top institutions will give some degree of aid to *anyone* they admit who doesn’t have a high income; luck is not required.

It’s hard to get into a place like Harvard. But if you do have a decent chance of getting in, don’t take schools like this off the table simply because you think you can’t afford them. After aid is factored in, they might actually be cheaper than full-price tuition at other schools.

By: DKlein

DKlein — Mon, 14 Jun 2010 13:26:20 +0000

Sorry, but it seems to me that “the new frugality” is a lot like “the old frugality.” I get it that times change, and things like the internet change some of the ways we practice frugality. But as you have described the new frugality in basic concepts, it is the same as mankind has been doing since the dawn of time.
For example, this is not the first generation to figure out that cheap short-term solutions are not always the best long-term value. A long time ago builders of houses understood that the house would last longer if it was built with a foundation. They figured out the wood on the house would last longer if it was painted. Yes, it was cheaper in the short term to skip those steps, but the house would not last as long. There is a reason why we say, “they don’t make them like they used to.”
Forever, the basic survival of mankind depended on individuals making thoughtful choices and maximizing resources. This generation did not invent it. But for some reason it is not hip or chic just to be thrifty. We need to give it a fashionable name like “simplicity” or the New Frugality.

By: Matthew

Matthew — Mon, 14 Jun 2010 09:54:59 +0000

I like to say frugality is the new bling!

By: Tracy W

Tracy W — Mon, 14 Jun 2010 08:44:51 +0000

Your best bet is to save as much as you possibly can.

I don’t agree with this. There’s always a chance that something could come along and kill you long before you get to retirement age. I’m glad that I’ve woken up for a midnight walk by a remote Alpine lake when there was a full moon and the air was so still you could see the stars reflected in the lake, danced and drunk rice wines in a remote Vietnamese tribal village, gone to a German wedding in Bavaria, seen Picasso’s erotic drawings in Barcelona, eaten bread and cheese while dangling my legs over the edge of the Grand Canyon in the USA. And so many other memories. While I do enjoy cooking, I’m glad I did not save as much as I possibly could.

By: Michelle

Michelle — Mon, 14 Jun 2010 04:58:31 +0000

Trent, do you think a VA loan (for those who are eligible) is a good option for folks who don’t have a 20% down payment? Basically, the VA guarantees a certain amount, usually about 20%, that allows you to forgo PMI, and finance the entire amount. I’m curious if you think it’s a good idea for eligible folks looking to buy a house without a down payment.

By: GC

GC — Sun, 13 Jun 2010 23:33:52 +0000

I didn’t expect to want to leave a comment on a comment but Katie had something powerful to say. Great point. Why pay Harvard money if you don’t get Harvard prestige?

Anyway. . .great review. I’ll definitely consider this book for my not-so-beachy reading.

By: Katie

Katie — Sun, 13 Jun 2010 21:12:34 +0000

In other words, the huge additional cost for a typical student to go to Harvard versus their local four year state school will likely not be made up for after graduation.

My anecdotal experience suggests that Harvard (and the very, very small number of similarly situated schools) actually probably is worth it. It’s the other hundred private schools outside the top five or so that cost the same amount as Harvard, are less generous with financial aid to middle income families, and carry no more prestige/name recognition value than the flagship state school that usually aren’t worth the value. I’d be curious to know if statistics bear that out.