Frugality has a very positive meaning! It’s the practice of self-discipline, spending wisely and avoiding unnecessary expenses. Unfortunately, some people confuse frugality with cheapness or miserliness. In today’s difficult economic state of affairs there’s a lot to be said for frugality and its bona fide Frugality Disciples.
     Take Warren Buffett, the 77-year-old CEO of Berkshire Hathaway Inc. Officially he is the richest person in the world with an estimated net worth around $62 billion. Yet Buffett has a remarkably frugal life style. He still lives in the home he purchased in Omaha, Nebraska, back in 1958, for $31,500. Today it’s worth $700,000. His salary is meager by most CEO standards: only $100,000. Gain insight to Buffett’s Frugal Disciple core values. Simply Google “Buffett goes to Wharton.” He compares his work to painting the Sistine Chapel.
     Another Frugality Disciple, Benjamin Franklin, one of our nation’s founders. Franklin was the youngest son and fifteenth child born to his working-class father. He attended school for only two years. But he made enough money to retire from active business by age 42. How did he do it? Franklin’s book, The Way to Wealth, is still in print and has gone through more than thirteen hundred editions.  For a concise analysis of Ben’s frugal skills go to: benfranklin300.org/etc_article_entrepreneur.htm
    No question about it: Frugality is today’s management watchword.
     A recent Business Week article (10/20/08), described Costco Wholesale’s ongoing savings program.  Their common sense approach is simple: Keep prices as low as possible. Most of Costco’s profit comes from membership fees. Their product margins are small. So they constantly fight rising costs to keep their customers happy.  Plus, they're making the $64 billion retailer even more efficient.
     Costco CEO James Sinegal says: “The biggest concern to me is that we lose our way and start thinking it doesn’t matter if you charge another dime or another dollar or another hundred dollars. Without these disciplines, we don’t have anything.” View more about Costco’s marketing savings program at businessweek.com/go/tv/Costco. 
     How do you become a Frugality Disciple? Learn from others! Develop the common sense approach needed to recognize opportunities to spend wisely and avoid unnecessary expenses.
     Beware of those “insignificant” expenses; a small leak will sink a big ship!
     Be creative when you review all the details in your latest monthly expense report. Look at every marketing related expense, not just sales and advertising. Can you improve? Spend more wisely?
    A Frugality Disciple says, “Trade for something before you buy it.” Perhaps you could barter goods or services with other businesses. And if you can’t barter, how about leasing? You’ll save cash.
     Examine the supplies most frequently reordered. Can you save money buying these supplies in larger quantities? Do you purchase business equipment only needed occasionally? Can you borrow or rent that equipment? If your business equipment or supplies don't need to be new, look for used items at Craig’s List or eBay.
     Searching for savings most people tend to look for increased productivity: automation, better work and management processes. Perhaps effective employee engagement may hold the greatest potential for improvement. Think about it!
    Last but not least! Frugality Disciples keep their eyes wide open for new business opportunities. We’ve all enjoyed complaining about rising prices, from bread to gas. But, like it or not, as reality sinks in, our lifestyles are changing to embrace frugality.
   Find new ideas and marketing guidelines in Jack G Hardy's IDEA Vault.
 

Jack G Hardy