The virtues of frugality

I am a cheapskate, a miser, a penny pincher, a tightwad, a thrifty person–a regular Mr.Kuripot. I am afraid I just have to admit it.

I get in a foul mood whenever I have to purchase a major big-ticket item, such as a personal computer. I try to put off such purchases for as long as possible.

I get nervous whenever I have to cover an unexpected expense. It just ruins my day.

When I travel abroad, I rarely ever bring anything back for family, friends, or co-workers. It is not my habit.

In fact, I was very surprised when I returned from an overseas trip, and a Filipino office lady asked me what I had brought back for her, as was the Filipino custom.

“Nothing,” I replied, somewhat chagrined that she actually expected a token souvenir from me.

And when I was working as a salesman, I avoided the practice of treating my Filipino co-workers to snacks or meals, as was their tradition.

My best friend would also be quick to tell you that I always ask for separate bills whenever we go out, whether it be to a restaurant or a Karaoke bar. I always insist on receiving receipts as well, so that I can meticulously record my expenses at the end of the day.

I regularly try to negotiate some sort of a discount whenever possible. It is unwise to pay retail when wholesale prices might be available with a little prodding.

My relative frugality stems from several key factors. First, I realize I do not earn very much in the first place. Second, frugality runs in some sections of the family (as an example of a crucial factor contributing to financial security). Third, I have to consider the eroding effects of taxation and inflation over time. Finally, I fully realize that Donald Trump and Larry Hillbloom I am not.

When one lacks a certain entrepreneurial flair, a certain natural talent for business, one has to overcompensate for it in enormous self-discipline. When one realistically realizes that one is not a hare, one has to seriously look into the turtle option: slow, steady and sure.

As J.P. Morgan’s father, Junius Morgan, once declared: “In making haste to be rich, how many fall, slow and sure should be the motto of every young man.”

The best advice I can possibly give young
people is: save, save–and then save some more. Save every possible penny. Never mind how other people might view you, or the cultural issues involved. Save and invest.
Twenty or thirty years from now, with many compounded returns, you will not regret it.