Are You Frugal or Do You Just Think You Are?

The average American household has anywhere from $8,000-$15,000 worth of credit card debt alone. Yet, everywhere I turn, I hear Americans describing themselves as frugal. Something is amiss.

Frugal: economical in use or expenditure; prudently saving or sparing; not wasteful.

Not a mystical word, by any means. 2 syllables, 6 letters, this word wouldn't make it past a 3rd grade spelling bee. Yet, it has eluded millions. How is that possible?

Dictionary.com does a stellar job clearly defining what it means to be frugal. There is nothing convoluted about the terms "saves money" or "isn't wasteful". Yet Americans are having a difficult time understanding them. Perhaps it is because concepts such as these have become nearly unrecognizable. Let's simplify:

If you are still paying on your home, you are in debt.

Sure, not many of us can buy a home outright. At some point, most Americans will have a mortgage. However, some will pay it off faster than others, by doubling payments or not purchasing homes outside of their pay grade. Meaning that the time they spend indebted will be significantly decreased.

Buying something on sale doesn't mean you got a deal.

Many companies intentionally raise prices prior to creating a "sale" price, creating the illusion of a deal, not an actual one. Surprise! Companies are out to make a profit. They are well aware that Americans sleep just that much better if they think they bought something on sale and can tell folks like myself how frugal they are. Even companies less deviant cant be trusted. Consider that the retail price of many items is so inflated that selling it at half price still rakes in an incredible profit. It isn't the percentage off that matters. It's the final price on the ticket, but more importantly, the amount left in your bank account.

Even $1000 in credit card debt is not a good thing.

Earlier I said that some Americans have $15,000 worth of debt. That doesn't somehow nullify your $1,000. Debt is debt. Americans seem to think that buying something on credit (and not paying it off right away) is normal and acceptable behavior.

"Splurging" doesn't equal a $1000 shopping spree.

It doesn't mean a $200 shopping spree either. A promotion is a cause for celebration, not a catalyst for putting you further at the mercy of your credit card company.

An aging car doesn't always need to be replaced.

Unless you've got the cash to pay for it upfront. In that case, splurge away! You don't get to call yourself frugal if you think that getting 5% on a $25,000 car loan is a good deal. Many financial advisers will tell you that keeping your "old" car and paying for the repairs is typically cheaper than buying a new one.

Those who are truly frugal have one thing in common: they love money. They love it so much they can't bear to let go of it. They love it so much that if they were kids, they would marry it. They believe that money trumps every car or shoe or restaurant.

Being frugal isn't something cool to say on a date or to your co-workers. It is a consistent way of life. If you aren't living it, please don't bring down the credibility of us frugal folk by pretending that you are.