What Does Selective Frugality Mean To You?

We often learn impactful lessons from our family, friends, and clients.

I learned the lesson of “Selective Frugality” from my grandmother. She was super frugal throughout her life, but there was one exception. After becoming a widow at age 62, she drastically changed her life. She started organizing senior citizen bus tours across the US for a local travel agency. If she convinced 10-12 people to sign up, her trip was free. She worked hard, and was great at this “job.” It was providing her with the opportunity to travel, which she had always wanted to do.

I found out later the reason she and my grandfather were so frugal was because they had set a long-term goal of saving $20,000 for my sister and $20,000 for me, so we could go to college. We were the first members of our family to attend college. Our family was lower middle-class, so money was scarce.

When I turned 17 (and my grandmother was 70), she put $20,000 in a checking account in my name, and I was told to “stretch it” through 4 years of college and beyond. I did, and I later realized this was a perfect example of a long-term financial goal.

When my grandmother was 66, she organized a tour to Europe (Germany and Switzerland) to see the Oberammergau Passion Play. She brought home a beautiful music box for me, and one for my sister. A few years ago, my husband and I were visiting Switzerland, and I saw the same music box in a store in Zurich. I was stunned, and it was expensive! I suddenly realized this was one time when she was not frugal.

I still have my music box, and it still plays. I treasure the memories of my grandmother, and greatly appreciate that she saved for many years so I could attend college. I believe the fact that she was successful at paying for my college provided an intrinsic reward for her, and giving us a very special music box also gave her tremendous happiness. I now understand the concept of selective frugality.

What is an example of Selective Frugality (or Selective Extravagance) you have seen? Please share it, and I’ll pass it along.

Donna Skeels Cygan, CFP?, MBA is the author of The Joy of Financial Security, and her upcoming book Becoming Enriched. She owned a fee-only financial planning firm in Albuquerque for over 20 years before recently retiring. She welcomes emails from readers at [email protected].