Lending Club Blog

Finding the Frugality Habit: 4 Ways to Beat Internal Pressures

In my recent article, I discussed the frugality habit. I often find myself spending much more than I intend to, so I began asking myself why. One of the major reasons is the internal pressure – temptation, desire, and lack of discipline – that causes us to pull out our wallets and buy something we don’t really need. The temptation to spend is fundamental to all of us, so how can we fight back?

Here are four ways to help you develop the frugality habit. Many other blogs offer tips and specific examples of ways to be frugal, but I’m more interested in helping you develop the mindset of frugality. While specific examples are great (and I’ll include some in this post), they all emerge from the mindset. Develop the habit, and the individual actions will arise naturally.

1) Understand what a habit really is.

It’s tough to develop a habit without understanding the definition. A habit, according to the Princeton dictionary, is “an automatic pattern of behavior in reaction to a specific situation; may be inherited or acquired through frequent repetition.” This is an excellent definition: it is automatic, unconscious, and it can be acquired by being continually practiced. A habit is really a feedback loop: You can develop the frugality habit by being frugal, and you act frugally by developing the habit (see figure below). Thus, you must really take it to heart to become frugal: begin acting frugally until it becomes unconscious.

frugality

2) Change your outlook towards spending.

At a certain point, you must make the decision to become a frugal spender. This means that you must evaluate your current spending and decide that you don’t need to spend like you used to in the past. For example, in a recent article, Frugal Dad asked himself what “rich” meant – and he decided that he had enough money, so he didn’t need to spend as much as he had been.

3) Condition the habit.

Make a serious effort, daily, to act frugally. Look at lists of potentially frugal things to do (such as here at The Frugal Duchess) and try to find ways to cut your spending. Consider subscribing to thrift and personal finance blogs (like this one!) and doing your best daily to…

4) Continue the habit until it’s unconscious.

Refine and improve your frugal actions until being frugal has become completely habitual. By acting frugally, you will become frugal.

Read up on Scott Young’s method of habit-introducing here. This is a good introduction to developing habits that you might find helpful.

By following these steps, you will be able to make yourself surprisingly frugal. By developing these protections against internal pressures, you won’t be affected by your desires and temptations as much as before.

Tuesday, November 18th, 2008 at 10:16 am

Comments (0)

Recommended

Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

Lending Club CEO Renaud Laplanche Receives Tribeca Disruptive Innovation Award

Read More »
April 29, 2016

Lending Club Business Financing Review

One of the biggest challenges of owning a small… Read More »
April 27, 2016

Lending Club partners with Funding Circle and Prosper to launch Marketplace Lending Association

Read More »
April 7, 2016

Lending Club Welcomes Maryland and North Dakota Investors!

We’re now open to retail… Read More »
February 23, 2016

What is Lending Club?

More than one million Americans have achieved their financial… Read More »
February 16, 2016

Get ready for tax season! Lending Club Now Offering TurboTax Integration for Form 1099s

Read More »
February 12, 2016

Lending Club Success: Surpassing $16 Billion in Loans

Founded in 2007, Lending Club’s… Read More »
February 11, 2016

Credit Performance Update

Summary: Credit performance of our standard program is coming… Read More »
February 7, 2016

Critical Small Business Financing Issues

A recent Harris Poll survey conducted on behalf of… Read More »
December 17, 2015

More Data Coming for Investors

We’re always seeking feedback and looking to make the… Read More »
November 10, 2015

2014

We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w