I remember the day I received my first credit card. I was a young graduate, and it was a thrill to see my name printed on plastic, marking a new beginning as a working adult. But don’t get me wrong – my idea of using a credit card was solely for the convenience of having a card and not for spending beyond my means. It was a simple decision for me.
Why was it easy for me but hard for others to make such a ‘frugal decision’? Are frugal individuals born or made? As a Penangite, there is a common joke that all Penangnites are born frugal. How does one continue to be prudent enough to be frugal? I believe there are three controlling factors:
FIRSTLY, have a Financial Dream
Set a financial milestone. Make it compelling enough to stop you from spending that extra Ringgit. Dream about it, visualize and share it with others. Your financial dreams are good nudges and reminders to start doing the right things. For example, cut overspending and start managing, saving and investing for the future.
SECONDLY, have a Financial Addiction
Find a financial activity that you can become obsessed with. Spend more time on a specific financial activity and keep at it until a habit is formed. Some examples are: tracking your daily expenses, paying your credit card bills timely, paying yourself first; ensuring your financial records are in place and updated, understanding your assets and liabilities thoroughly; ensuring your assets are being sweated etc.
THIRDLY, have a Financial Buddy
You become accountable when you share your financial stories with someone – your significant other, your good pal, or your financial planner. Your ‘financial buddy’ is someone you can trust enough to share your financial journey with. They are the ones who lend you a listening ear or become your sounding board whenever you are troubled or unsure about any financial issues.
So, frugality comes from a decision to change for the better. It is certainly not ‘Penang Island Geneology.’
