George Kamel - 12 More Rules For (A Frugal) Life

Episode Date: January 31, 2025

📈 Are you on track with the Baby Steps? Get a Free Personalized Plan - https://ter.li/t8v6zq Turns out, I chose the frugal life and the frugal life chose me. In this episode, learn 12 of my rules for frugal living that will give you the margin you need to build wealth.   Next Steps:  🎥 Watch my video 12 Rules for (a Frugal) Life.  💵 Start your free budget today. Download the EveryDollar app!  Connect With Our Sponsors:  🔒 Get 20% off when you join DeleteMe.  💸 Learn more about opening a high-yield savings account with Laurel Road.  📱 Get $5 off Tello's Unlimited Plan and enjoy great nationwide coverage for only $20 at Tello.  Explore More From Ramsey Network: 🎙️ The Ramsey Show  🍸 Smart Money Happy Hour  💸 The Ramsey Show Highlights  🧠 The Dr. John Delony Show  💡 The Rachel Cruze Show  💼 The Ken Coleman Show  📈 EntreLeadership    Ramsey Solutions Privacy Policy  Learn more about your ad choices. Visit megaphone.fm/adchoices

I don't want to brag, but I consider myself to be pretty frugal. Some people even call me, Kermit the Frug. No one calls you that. So a while back, I shared my 12 rules for a frugal life, and you guys loved it. A bunch of rule followers you are. And today, I'm going to share 12 more rules for frugal living to help you save money, live simply, and make smarter financial decisions. But before we jump in, hit those like and subscribe buttons, and share this video with your friend who thinks he's frugal, but is actually just a giant cheespeak. You know who you are.

Stealing from Goodwell isn't frugality, Brian, you're a criminal. I told you that in confidence. All right, let's get to it. Here are 12 more rules for a frugal life. Frugal rule number one. Everything's 100% off if you don't buy it. Look, I love a good sale, and I'm not afraid to do a little work

to find a promo code for $10 off a full-service synthetic blend oil change. But here's the key. Only take advantage of these offers if you're saving on something you already plan to buy with money you already budgeted. Your new mantra, never spend, just to save. Discounts and big blowout sales are usually just marketing tactics to get you

to spend more money. And the reason they do that junk is because it works. Don't let gimmicky sales and impulse purchases slowly drain your bank account and steal your piece. I don't care if something is 75% off MSRP. If you don't need it, the most frugal choice is walking away. Just like I walked away from that fight in fifth grade. Yeah, I was the bigger man. Well, technically the smaller man. Either way, Tommy didn't want the smoke. Frugal rule number two. Don't step over dollars to pick up pennies. Remember, we're trying to be frugal, not cheap.

Sometimes we focus so much on saving a little tiny bit here and there that it actually leads us to spend more money. And one of the best examples of this is credit card points. Who doesn't want a free flight to Boise, am I right? But credit card companies create the reward programs in a way that incentivizes people to spend more than they planned, trapping them in a vicious cycle of debt. They intentionally use complex pricing structures,

confusing point systems, and tiny fine print terms that all exist for their bottom line and their benefit, not yours. And for a good chunk of the population, these rewards are going to waste. A recent survey found that 23% of the people didn't redeem the rewards in the past 12 months. Yet people still chase credit card points and airline miles like a cat trying to catch a laser beam. Your energy would be much better spent on things like shopping for cheaper insurance or increasing your income, things that could make a bigger impact on your finances. So spend where it matters and save where it counts. Don't get caught up in driving an extra 12 miles to save $0.3.3.

Or trying to get enough credit card points to become wealthy. It's not happening. Frugal Rule number three. If you live fake rich, you'll become real broke. Now, by fake rich, I mean buying expensive cars, homes, clothes, watches, gadgets, and motorized toys that you really can't afford. And I put buying in obnoxious air quotes because most of the time these things are not bought. They're just financed through auto loans, helox, credit cards, and even buy-now-pay-pay-later apps. And I'm here to tell you, if you can't afford to pay for something without going into debt, even temporarily, you can't afford it. Don't do it.

I'm not saying you can never buy something expensive. I'm just saying don't use debt just to prop up a lifestyle to impress other people. That, if we're going to be honest, probably don't even like you that much. So what's the better route? Well, start a sinking fund to save up for it. Wait until you can pay cash or find a cheaper alternative. Living beyond your means right now might make you look good today, but it guarantees stress tomorrow. Meanwhile, living on less than you make and practicing delayed gratification are key components of living that frugal life. Or as Ricky Martin would say, live in La Vita Frugal. Live in Lvita Frugal, upside. I don't care who you are. You recorded that song on tape through the radio on a boombox at some point in your life.

How old are you? And if you don't know that song, thanks for watching my channel, toddlers. Frugal Rule number four. Financial boundaries lead to discipline. discipline leads to wealth. Humans need boundaries to thrive, and that's what a budget does for you. And contrary to popular belief,

a budget does not restrict you. It's actually freedom. It frees you to spend intentionally. It's a permission slip to spend. You see, when you make a zero-based budget, which means your income minus expenses equals zero, you're giving every single dollar a job to do. And by tracking your income and expenses,

you'll have a clear understanding of exactly where your money's going and where you can make adjustments. That way, nothing will get mindlessly spent on cat-related art prints at home goods. unless it's in the budget, in which case you have permission to spend. So if you want to be frugal, make sure you're practicing financial discipline with an every dollar budget. And if you want to check out my favorite app, it's called every dollar, and I'll link it in the show notes below.

And I get it. People don't like when I use the B word, so instead of budget, let's call it an intentional spending plan. Happy? Good. Frugal Rule number five. Every yes to spending is a no to something bigger. This one is all about opportunity cost. Here's an example. If you regularly spend so much at home goods, that you can't afford to invest for your retirement, you're missing out on years of compound growth if that money were invested in a retirement account.

So that framed oil painting of a cat's face on a human body, aka the Meow Nalisa, is costing you way more than just the $19. Future you is going to pay the price for all the crap you're buying, right meow. So before you make a purchase, ask yourself, is this worth sacrificing my dreams? Is this more important than my other goals, like saving or giving? So before you swipe that card, ask yourself,

what am I giving up in order to buy this? Am I okay with that? Frugal Rule number six. Don't make financial decisions just because you're happy, sad, mad, or glad. If there's one thing we learn from Inside Out too, it's that emotions can cloud your judgment. That and the fact that anxiety sucks. No, you're totally right.

That decision's not going to haunt us for the rest of our lives at all. So if your emotions are running high, cool off before you spend. And a good rule of thumb is to wait 24 hours before making any big purchases. Sleep on it, give yourself time to mull it over, and decide if it's something that you really need. Most of the time, you'll find yourself abandoning cart or saving for later, and your bank account will thank you. And you know what else would be a mistake?

Letting those shady people search websites continue to collect and sell your personal info without your permission. But you can take care of that with our friends at Delete Me, one of the sponsors of today's video. Delete me scrubs your personal info from data broker sites, and they keep doing it all year long. And they'll even send you a detailed report showing you where they found and removed your info and how much time they've saved you. And I've saved a whopping 66 hours. So help protect yourself from the risks of online scams and data breaches. with DeleteMe. And right now, you can get 20% off by going to join DeleteMe.com slash George, or click the link in the description below.

And before we get to the next frugal rule, here's a bonus rule for you. Frugal people don't overpay for their phone plan. They use a company like Tello, another sponsor of today's episode. Tello has crazy affordable phone plans that give you the same reliable coverage and features as the big guys, but with pricing as low as $5 a month. And if you want to never worry about data limits, the unlimited everything plan is just $25 a month. And here's the cool part. There's no contract.

You can upgrade or downgrade whenever you want, and you can get started from the comfort of your own home. And if you want to be extra frugal, you'll get an extra five bucks off your first month of the Unlimited Plan by going to tello.com slash George or by using the link in the description below. Okay, back to the rules. Frugal Rule number seven.

If your wealth is invisible, you're on the right track. When Ramsey's Solutions surveyed more than 10,000 net worth millionaires, we found that most of them aren't living flashy lifestyles, flying private jets and driving Lambos. In fact, most of them drive Hondas and Toyotas. And you probably wouldn't be able to tell their millionaires just by looking at them. And that's because true wealth isn't in flashy cars or designer clothes. It's in the invisible things like your retirement account with lots of commas in it

and your home equity because you paid off your house. That's true freedom and peace of mind. That is true wealth. So invisible wealth is a good indicator that you've got your priority straight and you're making smart money moves. And last time I checked, cyber trucks are not invisible, although I wish they were. A real eyesore on the road. Frugal Rule number 8.

Shop your home before you shop the store. Now, this one's pretty simple, and honestly, does not need much explanation. But before you run out and spend money on something you think you need, take a good look around your house. Whether it's food, clothes, tools, there's a chance you already have what you need in a drawer somewhere, tucked away in a giant plastic bin in the attic, or in the back of the pantry accidentally concealed by the expired box of wheat thins that you'll never finish.

And if you don't have it, see if you can rent it from a store, or even better, borrow it from a friend or neighbor. And that comes with the added bonus of Human Connection. You know, like the good old days. when we used to hang out instead of just sharing memes back and forth. Simpler times? Frugal rule number nine. Time is the most expensive currency.

You're only given a certain amount of time on God's green earth. And you can always make more money, but you can't make more time. So stop trading your precious time for unnecessary things. For example, if you hate mowing the lawn and you have extra money, hire someone to do it. You're giving somebody a job and you're giving yourself some time back. Frugal people and wealthy people alike know that buying their time back is way more important than buying another thing of a jig. Frugal rule number 10.

The less you own, the richer you'll feel. Now, this one might seem counterintuitive, but there's a reason that minimalism is so popular right now. It's easy to fall into the trap of consumerism and keeping up with the Joneses. But when you live with less and focus on the things that truly matter, you can live a more intentional life and reduce your expenses. That's what being frugal is all about in my book.

Owning just a few nice things that you actually use and love is way better than being middle-class fancy and hoarding a bunch of crap in your attic and storage units that your kids are going to have to deal with one day when you inevitably move to Florida or die. Some would say they're one of the same. Nobody says that. So simplify your life.

Less clutter equals less stress, more joy, and more room for what really matters. And that's the nicest thing I'm going to say today. I thought that was very poignant if I do say so myself. Frugal Rule number 11. You can't spend your way into a meaningful life. I don't care how much money you have. Buying more stuff is not going to make you happy.

As the great Zig Zig Zig-ZiGler one said, money won't make you happy, but everyone wants to find out for themselves. And this is one of those lessons most people have to learn the hard way. But if you want to learn the easier way, check out what Harvard professor Arthur Brooks told me about money and happiness right in this very room. It turns out there's five things that you can do with your money. You can buy stuff. You can buy experiences.

You can buy time. You can give it away or you can save it. Those are the only things you can do with your money, right? Four of them will bring you happiness, and one won't. Your brain is telling you to do the, one thing that won't bring happiness, which is to go buy stuff. There you go. Somehow it hits different coming from a delightful Harvard professor who looks like a distant cousin of Stanley Tucci. Look, it's fine to have nice things and enjoy them.

Just don't let that stuff own you. And don't look to things to make you happy. Instead, focus on your purpose, your relationships, your spiritual life, and your peace of mind, which ties right into our final rule. Frugal Rule number 12, invest in what lasts. And I'm not just talking about a pair well-made boots, although that's a good thing. idea. You should do that. I think it's wise to prioritize quality to save money in the long run. In fact, that was one of my last 12 rules. Buy quality now to avoid buying more later. But this rule is about more than just physical things and money. It's about your physical health, your mental health, your relationships, your spiritual life, your faith, your career, and the impact you have on the people

around you. That to me is where true wealth and contentment live. So here's the secret of this channel. I talk about money so that we can stop talking about money. Because when money is no longer an obstacle, we can focus on what really matters and become the people we really want to become. And money then just becomes a tool to help you live a life that you're proud of instead of exhausted by. So those are 12 more rules for frugal living. And remember, being frugal doesn't mean you're a cheap skate like Uncle Frank and home alone. It just means you're very intentional with your money, and that would include making and sticking to a monthly budget. I mean, intentional spending plan. And the app I used to create my intentional spending plan and track my expenses

is every dollar. It's a free download and it's super easy to use. And it basically does all the math for you. So if you want to check it out, click the link in the description, or go to every dollar.com slash George. As always, don't forget to like and subscribe, and in case you miss my first 12 rules for frugal life, be sure to keep watching this next video or click the link in the description below. Thanks for watching. See you next time.