Replace Uncertainty with Small Choices

You can be frugal with your decision-making as well as with your money.  I’d like to illustrate this point by talking about this article on another Website.  The writer is afraid to try investing in the stock market because it’s complicated and a lot of people really do lose money that way.

And what I think he is missing is the obvious tell-tale sign that his gut instinct is advising him not to leap into something he doesn’t understand.  When you’re living a frugal lifestyle you want to make conservative choices that have clear payoffs.

As I have often said, being frugal does not mean you have to do without everything you would like to have.  You just wait until you’re ready to make the deal at a price that you are comfortable with.  When you buy a car it is more frugal to buy a certified pre-owned car than a new car.  When you buy a house it is more frugal to buy one that needs a little (not a lot of) work.

When you think about investing in the stock market it is probably best to think about how long you can keep your money there.  In my opinion if you think you’ll get out of the market in less than 3 years it is probably not a frugal investment for you.  So don’t agonize over it.

I understand that people look around themselves and see signs of success everywhere.  Everyone else seems to be better off.  But most of those people wonder how they will pay their bills, set aside money for the future, and what they will do if they lose their jobs.  Most Americans are only 1-2 paychecks away from financial disaster.

The frugal lifestyle calls for compartmentalizing your choices.  The big picture is to get control of your financial life and build a stronger future for yourself and your family.  But you have to cut it down to a lot of little pictures that you can easily manage.  You will know when you are ready to invest in the stock market, if ever, because it will be an easy decision to make.