Diversification is Key Part I : 22 Different Ways to Say "Cheap"

That was a Cheap Shot

Not many people are comfortable with being labeled "cheap" because of the negative connotation attached to this word. Being cheap not only typifies a reluctance to spend money, but it also projects an extreme level of selfishness that transcends financial concern and often alludes to moral, social, and ethical dysfunction.  Not everyone that is reluctant to spend money, however, is cheap. Cheap is a misnomer placed on the frugal and provident, who, more than not wanting to spend money, are most concerned with minimizing waste and excess of any kind. 

What Did You Call Me?

Below are 22 different ways to distinguish, characterize, and explain the divergence amongst the financially cautious. Which best suit you?

1. avaricious (adj). greedy; immoderately desirous of acquiring

2. cadger (n.) someone who tries to get something for free.

3. canny (adj.) shrewd; especially where one's own interests are concerned

       having or showing clever awareness and resourcefulness in practical matters

4. chary (adj.) trying attentively to avoid danger, risk, or error

5. chinchy (adj.) embarrassingly frugal

6. chintzy (adj.) unforgivably ungenerous

7.churl (n) a rude, boorish person; a miserly person; a medieval English peasant

8.costive (adj.) stingy; sluggish; causing constipation

9.economical (adj.) prudent and thrift in management; not wasteful or extravagant

10.frugal (adj) very careful with money

11.mingy (adj.) mean and tight; stingy

12.miserly (adj.) lacking generosity 

13.niggard (n.) a stingy; grasping person; niggardly (adj.) stingy; miserly

14.parsimonious (adj). excessively frugal; too economical

15.penurious (adj.) unwilling to spend money; yielding little

16.provident (adj.) providing carefully for the future; relating to the mindful development and use of resources.fore

17.scrimy (adj). petty and reluctant in giving or spending

18.scrounger (n.) someone who seeks to obtain through begging or borrowing without intention of repaying.

19. shnorrer (n.) someone that takes advantage of the generosity of others

20.skinflint (n.) a selfish person who is unwilling to spend or to give.

21.stingy (adj.) ungenerously or pettily reluctant to spend money

22. thrifty (adj.) careful in the use of material resources

Strike a Balance

In our efforts to secure a solid, plentiful financial future, we must remember to attend to our present selves as well. If you find that saving is ruining or lowering your standard of living, your intimate relationships, or your overall mental and emotional health, it may be important to address the psychological underpinnings of your behavior. If, however, you feel more confident, secure, and well taken care of both in the present and for your future each time you squirrel a little money away... then I say, Save On! Save On! 

Wow, You're a Life-Saver! Part II

Repetition is the Essence of Pedagogy

In the last column, we focused our attention on five financial tools of engagement that life-savers use to not only thwart monetary self-sabotage, but also hone proactive, capital accumulating practices:

1. Life-Savers carry calculators

2. Life-Savers carry big bills.

3. Life-Savers carry business cards.

4. Life-Savers carry pen and notepad.

5. Life-Savers carry chips on their shoulders. 

Practice with Principle Makes Perfect

Life-saving is not just about tools and practical tips. Life-saving is a philosophy and way of life based on principles of personal accountability, delayed gratification, balance, single-mindedness, and creativity. In order to practice the habits of life-savers, it is crucial to first internalize their underlying philosophies. 

Life-Savers do not hate, they appreciate (literally).

Saving money would be easy if the products and services that corporate masterminds introduce and push had no style, added little convenience to life, and did not cater to human vanity. But they do! Sitting on a $4,000 leather couch imported from Italy may evoke the feeling of being ensconced in velvet, silk, satin, and other materials soft and buttery to the touch. Navigating the curves and turns of a windy road with ease in a $40,000 luxury car also elicits intense sensations that range from excitement and peace to invincibility and control.  Similarly, purchasing trendy clothing, designer shoes, and lavish accessories stroke the human psyche's craving for immediate gratification, want of recognition, and desire for (perceived) superiority.

Life-savers are realists and do not disparage the allure, aesthetic, and appeal of these type of items. What life-savers as realists clearly understand, however,  is that these items depreciate (often exponentially) after years of wear-and-tear, once driven off the showroom floor, and if not taken care of. Instead, life-savers buy items that conserve their value and appreciate in 

worth : index funds, mutual funds, 401ks, continuing education courses, commercial and residential properties, copyrights, and art and leave fantasies of the acquisition of excessive material trappings for fairy tales. 

Life-Savers  prefer inconspicuous consumption over conspicuous consumption. 

The motivation behind conspicuous consumption is the want to impress others and convey an elevated socioeconomic--whether true or not. The purchase of visually stimulating items such cars, clothes, mansions, yachts, country-club memberships, and electronics project and promote this image.

Conversely, inconspicuous consumption gives the impression that one is of low or moderate means and status. Life-savers thrive on this perception. It not only eliminates the jealousy and envy that may accompany the flaunting one's good fortune, but it also minimizes risk for robbery and injury. In other words, subscribing to a philosophy of inconspicuous consumption allows life-savers to build wealth through high-income earning, low attention-grabbing assets (i.e. land, stock, bonds, leases) while maintaining their financial privacy and anonymity.

Life-Savers rebel with a cause.  

Most of America is financially illiterate and financially reactionary. This makes those that are fiscally savvy and proactive in wealth accumulation stand out and stand alone. They live below their means, differentiate between wants and needs, safeguard against unnecessary debt, protect their credit scores, create emergency funds, take advantage of tax-shelter options such as tax-deferred annuities (TDA), individual retirement accounts (IRAs) and other  long-term economic planning. 

Knowledge and insight garnered through study and practice comfort life-savers as they  encounter the glaring manifestations of financial ignorance-- disdain, suspicion, exclusion, and mockery from chronic spendthrifts--while on their long and often lonely journeys toward financial security and prosperity. 

Life-savers prepare for the worse, hoping for the best. 

Not everything goes according to plan. Despite attention-to-detail, hardwork, and immaculate planning, there are things that are essentially out of our control. (i.e. natural disasters, accidents, death). With life being unexpected in nature, life-savers buffer themselves from unforeseen financial blows by always accounting for them in their planning. They keep emergency funds, insurance contacts, and liquid financial reserves updated and readily available. 

Life-Savers worry about their names, not brand names. 

 Your reputation and history for repaying loans and handling debt is crucial when you are seeking to establish a solid financial identity, especially in the eyes of loaning agencies. Your credit score, the numerical indicator of your creditworthiness, dictates your level of success in applying for loans, securing investors, or even purchasing a cellphone. 

As a result, life-savers pay close attention to what they sign their names to. They understand that in agreeing to the terms of a loan, a new account, or credit card that they are ultimately responsible for managing payments. This is particularly why life-savers are averse to co-signing loans, agreeing to open accounts in "my mama name", and establishing joint checking and savings accounts even with the closest of loved ones. 

Wow, You're a Life-Saver! Part I

Be a Life-Saver!
Talks of an imminent recession, massive layoffs, surges in the prices of wheat, housing and mortgage slumps, and an increasingly impotent dollar are causing widespread concern for the financial future of the average American. Now, is as good a time any to discuss the importance of being a saver for life or "lifesaver." In the next two columns, we will explore revolutionary, yet seemingly trivial tools and ways of thinking that keep lifesavers more adept at absorbing the impact of external threats to their financial peace of mind and purchasing power.
Below are five basic tools that lifesavers use to defend themselves against corporate agenda, piracy,and peddling.

Life-Savers Carry Calculators
Keeping a calculator handy, whether the one on your cellphone, in your purse, or in between your ears, saves you from succumbing to alluring discount offers and seductive sales pitches. Once you realize that 20% off of $200 is actually $60 more than the $100 that you wanted to initially spend, you'll be more discerning and wary of department store bargains and holiday sales.

Using a calculator while shopping also helps you to discern when there in fact is a bargain, even though it is not so apparent. For example, last week I went to a buy hair conditioner. The four-ounce bottle cost $10, while the eight-ounce bottle cost $15. My initial thought was to buy the four-ounce bottle, but a quick calculation made me see that it would be in my best interest to buy the larger bottle now and save myself $5, in addition to transportation or other non-related costs that would accompany the purchase of another four-ounce bottle at a later date.


Life-Savers Carry Pen and Notepad
The necessity of pen and notepad as tools of proactive saving often go overlooked. Not only should you use these tools to create lists of items and estimated prices before you leave the house, you should also use this list to guage the completion of a task. More importantly, carrying pen and notepad allows you to jot down better prices, patterns in your spending, lucrative opportunities, and financial tips in one place.

Keeping all of this data in one location proves key. Over a period of time, these financial journals illuminate financial priorities (or lack thereof), business ideas, and serve as reference for invaluable human and capital resources.

Life-Savers Carry Business Cards
Those that commit to a life-saving lifestyle are prepared to absorb the financial shock of life's unexpected events because of their long-term money mindset. Equally important, they prepare for financial opportunity in the present. That is, their proclivity for planning and practicality also allows them to take advantage of opportunities to network and embark on money-saving or money-making ventures when least expected. To this end, they keep updated business cards on their person at all times. This facilitates the broadening of their social base and projects to those with whom they encounter a level of business savvy and creative maturity.

Life-Savers Carry Big Bills
The largest denomination of money in this country are $50 and $100 bills. Generally speaking, consumers usually reserve them for large purchases such as electronics, furniture, and or appliances. Conversely, consumers reluctantly use big bills to buy packs of gum, magazines, or quick bites to eat when they have no change. Life-savers understand that carrying big bills, like $50, make them less prone to frittering way their money on small purchases. With big bills, they are more easily able to monitor when bills are broken and when change is made. (Think: It's easier to keep track and more painful to spend four $50 bills than ten $20 bills or twenty $10 bills.)

Life-Savers Carry Chips on Their Shoulders
Most people go shopping with an aim to spend money. That is, they do not need much persuasion to spend money because in fact, they want to spend. They consider malls, salespersons, and outlets inviting, nonthreating, and without motive. On the other hand, a life-savers money mindset is the exact opposite. They enter commercial areas playing financial defense. They understand stores, shops, and others of commerce to be deliberate, purposeful, and predatory to their future financial security. As a result, they need proof, reason, and rationale as to why they should spend their money because their principal financial aim is to keep it.