Ebenezer Scrooge was a stingy miser and not frugal. I worked for 18 years for Ebenezer Scrooge. Ebenezer has a reputation for being the most miserly person in town. He never gave to charity, his clothes were tattered, and his home was a dilapidated cottage because he refused to spend a single coin on repairs. Ebenezer loved to day trade and would lose thousands of dollars a day on trading, but did not want to share the wealth.

Ebenezer lost his wife and he came to work after the funeral. Ebenezer’s heart remained unchanged. He continued to hoard his wealth, living in the same shabby cottage and wearing the same tattered clothes. He had gained notoriety, but he had not gained any real happiness.

Ebenezer worked till he was in his late 80’s. He never traveled.  Ebenezer grew old and frail. No family or children. No legacy.

I wish Ebenezer smelled the roses. The roses represent the joy that can be found in embracing life’s challenges, stepping out of your comfort zone, and in sharing your experiences with others. Ebenezer never realized the true cost of his stinginess and the richness of the experiences he had missed out on.

The difference between being stingy and being frugal

There are different undertones, implications, and connotations to being stingy and being frugal. They both relate to the people manage their resources and money and how they react to it. The main difference between being frugal and being stingy lies in the attitude and motivation behind one’s financial decisions.

Frugal

Being frugal means being mindful and careful about spending money and resources. Frugal individuals are intentional and make deliberate choices to save money by avoiding unnecessary expenses, finding deals, and making the most of what they have.  Frugal individuals prioritize value and are often focused on long-term financial goals. Frugality is about living within your means, being inventive, and making cautious decisions about where and how to spend your money.

Stingy

Stinginess, on the other hand, has a more negative connotation.

A stingy person is typically someone who is overly cautious or reluctant to spend money or resources, even when it might be appropriate or necessary. This behavior is often driven by a desire to save and accumulate wealth, sometimes at the expense of relationships, experiences, or personal well-being. They are often unwilling to spend money on even basic necessities and may go to great lengths to avoid parting with their funds. Stingy people might be hesitant to share their possessions, whether it’s lending items to friends or family, contributing to group expenses, or giving to charity. They may delay or avoid making purchases, even for items that would significantly improve their quality of life. Stingy individuals often engage in intense negotiations or haggling to get the lowest possible price. Stingy people might find reasons to avoid social gatherings that involve spending money, such as going out to eat, attending parties, or participating in activities that require a financial contribution. This hoarding behavior can extend to money, material goods, or even knowledge. Stingy people often prioritize saving money over enjoying life experiences.

qualities often associated with a frugal person

Resourcefulness

Frugal individuals are adept at finding creative solutions to problems. They can repurpose items, find alternative ways to achieve their goals and make the most of what they have.

Budget-Conscious

Frugal people are mindful of their spending and typically create and stick to budgets. They prioritize their expenses, focusing on necessities while limiting spending on non-essential items.

Prioritization

They understand the difference between needs and wants. Frugal individuals prioritize spending on essentials like housing, food, healthcare, and education while being cautious with discretionary spending.

Savings Mindset

Frugality often goes hand-in-hand with a strong savings habit. Frugal people are diligent about saving a portion of their income for future goals, emergencies, and investments.

Minimalism

Frugal individuals tend to value experiences and relationships over material possessions. They may embrace a minimalist lifestyle, owning only what they truly need and avoiding excessive consumerism.

Comparison Shopping

Frugal people are known for researching prices and comparing options before making purchases. They seek the best value for their money and are willing to invest time in finding deals.

DIY Attitude

Frugality often involves a willingness to do things yourself. This could range from cooking at home instead of dining out to tackling basic home repairs without immediately calling a professional.

Avoiding Debt

Frugal individuals are cautious about accumulating unnecessary debt. They aim to live within their means and avoid high-interest loans or credit card debt.

Long-Term Thinking

Frugal people are often future-oriented. They consider the long-term consequences of their financial decisions and are willing to make short-term sacrifices for greater financial security down the road.

Environmental Awareness

Many frugal individuals are environmentally conscious. They reduce waste, recycle, and minimize their carbon footprint by adopting practices like reusing items and reducing energy consumption.

Contentment

Frugal people often find contentment in simple pleasures and experiences rather than constantly seeking material possessions. This mindset contributes to their overall well-being and happiness.

Mindful Spending

They make intentional choices about where they allocate their resources. Frugal individuals are less likely to engage in impulse buying and more likely to think through purchases before making them.

Embracing frugality can empower you as a person

Frugality helps you build financial independence and stability by saving money, reducing debt, and increasing your overall financial security. This independence can free you from financial stress and the need to rely on others for support.

Being frugal enables you to allocate resources toward your goals and dreams, such as buying a home, starting a business, or traveling the world. You have the financial means to pursue your passions and aspirations.

Living within your means and having a financial safety net can significantly reduce stress and anxiety related to money. You’re less likely to worry about unexpected expenses or financial emergencies.

Practicing frugality requires self-discipline and mindful spending. This discipline can spill over into other areas of your life, helping you make better choices and maintain a healthy work-life balance.

By spending less on non-essential items, you have more freedom and flexibility in how you allocate your resources. This can mean more time for family, hobbies, or pursuing opportunities that align with your values.

Frugality often encourages sustainable and eco-friendly practices, such as reducing waste, conserving resources, and choosing products with a longer lifespan. This can contribute to a healthier planet and a sense of empowerment in making environmentally conscious choices.

Frugality can be closely associated with minimalism, which focuses on decluttering your life, simplifying possessions, and prioritizing experiences over material possessions. This minimalist approach can lead to a greater sense of contentment and focus on what truly matters to you.

Being frugal encourages resourcefulness and creativity in finding cost-effective solutions to everyday challenges. This problem-solving mindset can extend to other areas of your life and enhance your problem-solving skills.

Frugality helps you develop resilience in the face of economic downturns or unexpected financial setbacks. Having a frugal mindset means you’re better prepared to weather financial storms and adapt to changing circumstances.

When you have financial stability through frugality, you may be in a better position to help others in need. Whether through charitable donations or lending a helping hand to friends and family, you can make a positive impact on your community and society as a whole.

Frugality empowers you as a person by providing financial security, reducing stress, promoting self-discipline, and allowing you to allocate resources toward your goals and values. It can lead to a more intentional and fulfilling life, emphasizing what truly matters to you while also fostering financial responsibility and resilience.

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Introduction

The surge and rise in prices of goods and services in an economy are called inflation. The increment in price results in your currency buying fewer goods and services resulting in the decreasing purchasing power of your money.

As I am revising this article, the inflation rate in Canada and the U.S. is around 8% the highest in four decades.

I am going to write about what I have been doing to save money during this inflationary period.

I have spent more than 25 years in the financial services industry. I have lent money, managed money, traded money, and seen two recessions, the tech crash in 2000, 9/11, 2008, and now 2022. The COVID-19 crisis was an outlier or a Black Swan. The challenge with the COVID-19 crisis is that we had to quarantine ourselves, as countries around the world had been hit by a pandemic that was merciless, carcinogenic, and catholic. The knife was in the stomach, turned around and salt is being rubbed in the form of a shortage of many goods, disruption in supply chains, hoarding, and inflation.

I would strongly recommend that you create a budget and stick with it. Inflation kills your budget.

The future is uncertain and the times are scary. However, we will overcome it.

One question on your mind is whether you will come out ahead financially at the end of this. Here is what I am doing to deal with inflation and save money.

Save on Car Insurance

It is easy to save if you own two cars. Debbie has a short drive to work. I am working from home. We will be driving the car once a week to get groceries. This month, I called the insurance agent and took one car off the insurance. Total savings is $125.

Save on Cell phone, cable, internet

As a loyal customer with a provider, you have to negotiate and it can save you money. I called my provider and negotiated better rates for the cell and internet. I switched to IPTV where I get 5,000 channels and only pay $15 a month. Total savings is $50.

Hair color for Debbie

Debbie used to go to a salon for coloring her hair. I learned how to color her hair. Total savings  $125.

Cutting grass

I have a huge lot and for the last couple of years had a professional company cut my grass three times a month. I am going to cut the grass this year. Total savings $100.

Save by Working from home

I requested to work from home. It saves me two hours a day stuck in traffic. I am saving $160 in gas and $50 in parking. Total savings $210.

Cooking at home

I am cooking all my meals at home. I used to eat out pretty often. No need for Uber Eats or Door Dash. Total savings $150.

Cut the non-essentials

Inflation could last for a while. No one knows if another wave of COVID-10 will come. So, the more money you save, it can sustain you.

Refinance, consolidate and lower your rates

If you have many loans, lines of credit, and credit cards, I recommend you refinance your mortgage and consolidate. This way you will have only one payment. Call your banker and lower your interest rate. I recommend Ashish Lala. He is the best in the business.  Continue to invest in conservative stocks that will give you a dividend and ask for a raise.

I hope some of these tips will help you to save money during these inflationary times.

Photo Credits: Tonik  Richard Burlton Andraz Lazic Andre Gaulin Diogo Brandao Max Ilienerwise Becca Tapert Anastase Maragos Sharon McCutcheon

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Money touches everything. It affects how we sleep, how we eat, how we raise our children, and how we dream about the future. Yet too often, we treat finances like a separate compartment of life, disconnected from faith, family, and well-being.

What if we approached money the way we approach health, looking at the whole picture instead of isolated parts?

In this conversation, Jason Trueman, Portfolio Manager with Cumberland Private Wealth Management, shares why a holistic approach to household finances matters. From buying a quality mattress to investing with discipline, Jason explains how thoughtful spending, long-term vision, and balance can create not just wealth, but freedom and peace of mind.

Welcome to Four Columns, where food, faith, finance, and family are not separate conversations, but part of the same story.

Jason, welcome to Four Columns, a holistic blog on food, faith, finance, and family. Please tell me a little about yourself.

I am a Portfolio Manager with Cumberland Private Wealth Manager. Cumberland is headquartered in Toronto. I work with a talented team in Kingston, Ontario, including a CFP, CA, CPA, and TEP, providing holistic wealth management services for successful Canadian families and business owners.

How did you end up in personal finance?

I graduated from Queen’s University with a Bachelor of Commerce Degree. I received my CFA charter in 2001. I started my career as an Underwriter with Chubb Insurance. I was recruited by AIG and worked in Bermuda for 7 years before returning to Kingston to raise our young family in 2010.

Give me three tips on how to have a holistic approach to personal finance?

Control your spending by buying things you need and on an average cost basis (i.e. you will spend one-third of your life on a mattress so buy a good one).

Be disciplined with your investing. Buy dominant companies with great management who care about both their customers and their shareholders (these are rare and require work to find).

There is a balance between disciplined spending and enjoying your life; life is short so if you need a trip or a new car or new shoes to enjoy your life then spend the money.

What happens when we live on credit cards and not on our salary?

Credit cards that you pay off in full on a monthly basis and never pay interest on and accumulate rewards are great. When you overspend and pay exorbitant interest living beyond your means then you will suffer from difficult financial decisions and increasing stress.

How important is it to have a budget as part of a holistic approach to our personal finance?

I find long-term goals are helpful in providing meaning to your actions like why am I going to work and saving for my child’s education or retirement. Budgets help keep your life and spending in order; like a calendar and daily to-do lists.

What are some important tips to start saving?

Paying off your higher interest-bearing debt is most important. Taking advantage of government savings programs like RESPs, RRSPs and TFSAs is enormously important as well. Again, buying things you need (healthy food, a quality mattress) instead of buying things you want for status and cost a lot on a per-use basis (the tenth pair of shoes, vacation properties) is critically important.

How do you balance faith, food, finance, and family?

I believe in humanity; if we all do our part to contribute, we collectively accomplish amazing things. If you don’t spend money on healthy food then you’ll pay the price with poor health and physical limitations. Finance is about independence; ideally, a career doing something you enjoy while creating financial freedom to do nothing if you so choose. Raising kind, caring and confident children who find something productive they love to do in life are our number one job as parents.

Can you recommend some great restaurants in Kingston?

Kingston has an enormous array of awesome restaurants – having 35,000 students in the city helps. I prefer local family-owned restaurants such as Tango, Woodenheads, and Harpers.

You manage money for the wealthy, what have you learned from the experience? Do they have a holistic approach?

Success usually requires some form of sacrifice at some stage in their life. For many that mean focusing on academic excellence instead of always finding the nearest party. For others, that means pursuing an idea, a vision, and taking on considerable financial risk, and working excessive hours to make their dream a reality.

How important is food to you?

Food has an enormous impact on how you feel and how you look. Humanity would benefit from healthier eating with lower health care costs, lower greenhouse gas emissions, and an overall more productive society and cleaner earth.

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A financial plan is a road map to achieving your financial goals.

We all have financial goals. It could be for a vacation, purchasing a home, children’s education, or retirement.

A financial plan looks at where you are at present and what you want to achieve in the future. It looks at net worth, cash flow, insurance planning, estate planning, retirement planning, and taxes.

A financial plan gets you in touch with reality, helps you to become realistic, looks at opportunities and risks, and gives you peace of mind.

Scott Schofield of Nesbitt Burns talks about reasons to have a financial plan and a disciplined savings strategy. Having this does not make you feel guilty.

Scott tell my global audience a little about you?

I am an investment advisor in London, Ontario, for approximately 150 families and business owners. I am a Chartered Investment Manager (CIM®) and have 20 years of experience in the asset management industry. Before joining BMO Nesbitt Burns, I consulted with financial advisors in my role as Senior Vice President with Mackenzie Investments and Dynamic Funds and hold a BA in Economics from Dalhousie University.

When not analyzing numbers, I enjoy many outdoor activities including kayaking and stand-up paddleboarding. My favorite activity is skiing with my wife and our two daughters that are 8 and 10 years old.

You have been around the financial services industry for a long time. What are some of the things you have learned? 

Being in the financial services industry has taught me a number of things over the years. However, one thing that stands out is that investors have a tendency to forget about ‘risk’ in their portfolios when the markets are good. It is always good to re-valuate your portfolio to ensure your portfolios are aligned with your objectives. If you are asking yourself, what are my objectives? you should seek advice from a licensed professional immediately.

Besides saving 10 percent, paying off your debts, living within your means what other advice can you give to my audience?

Great question, I would have to say seek out advice. Many Canadians feel like they do not have a high enough net worth to seek the advice of a professional. This is not the case. The value of having a financial advisor is undeniable.

Why is it important to save for retirement and what are some of the tools? 

There will come a day when you stop receiving a paycheque and need to replace that with an income from your portfolio. Saving in tax-deferred plans such as Registered Retirement Savings Plan’s (RRSP’s) and Tax-Free Saving Account’s (TFSA’s) are great ways to help reduce and manage the level of tax you will pay in retirement.

To become successful in saving, we have to make some sacrifices and have a financial plan. Do I always have to have the latest TV, cell phone, latest car? 

Some people really like to have the latest and greatest. I do! You should treat yourself from time to time. Having a financial plan and a disciplined saving strategy can potentially take the guilt out of treating yourself because you will know if you can or cannot afford these things.

Talk to me about TFSA and RESP? 

Both are great tools for investors.

The Tax-Free Savings Account (TFSA) began in 2009 and is a great way for Canadians to set aside money tax-free throughout their lifetime. A TFSA does not apply taxes on any contributions, dividends, capital gains, or interest earned, and can be withdrawn tax-free. This savings account is available to individuals aged 18 and older and can be used for any purpose.

An RESP is a great way to save for your child’s or grandchild’s post-secondary education. Parents, grandparents, and friends can contribute money any time to an RESP – up to a lifetime total of $50,000 per child. These contributions are not tax-deductible, but any investment income that’s earned within the plan isn’t taxed until it’s withdrawn.

The federal government will match 20% of the first $2,500 you contribute each year. That is $500 each year. When your children or grandchildren are eligible to start receiving the money to pay for tuition, books, computers, residence, meal plans, transportation and more, they pay the tax—generally at a much lower rate than you would have paid.

If my viewers want to become a client of yours, what are you looking for in a client? 

The bottom line is we want to work with clients that are engaged in their financial well-being.

Working towards financial goals is best done by a collaboration between our clients and our team.

It does take some investment of time in the early stages to get to know our client so we can properly propose personalized solutions and a financial plan that finds a balance between their goals and their risk tolerance. From there we implement the plan and monitor it year-round.

How important is it to have a financial plan, a road map of where you are going, goals, estate plan, and a will? 

I cannot stress enough how important a financial plan is to our client’s financial well-being.

It is a personalized blueprint or roadmap to meeting and exceeding financial goals.

A plan is adjusted over time as life events and unexpected things happen in our clients’ lives.

It also is a tremendous aid in helping to minimize tax during and after our clients’ lives.

How important is food to you and let us know some of your favorite restaurants in London?

What can I say I love food! I always like to be the first of my friends to try new restaurants and enjoy traveling and trying new to me restaurants along the way.

In London, I tend to frequent two of my favorites often.

The Church Key Bistro-Pub is a British traditional gastropub specializing in traditional food done with a gourmet flair. They use seasonal and locally sourced ingredients whenever possible. If you go there you have to try their Ale & Onion Soup with the Smoked Salmon Sammy.

The Bungalow – Neighbourhood Hub, is a great neighborhood ‘local’ in a residential area. The restaurant’s style and cuisine are designed for casual and convivial enjoyment. They have an extensive craft beer selection and a build your own burger option that they claim results in over 3000 different possible combinations. When not tinkering with my burger recipe of choice, my go-to is the Fish Tacos with the Habanero Potato Cheddar Bacon Soup.

How do you balance faith food family and finance in the 21st century? 

Finding a balance is sometimes tough with a busy practice and family. Making and taking the time to shut off devices and being in the moment with my family is very important to me. The best conversations are with my girls walking the dog after dinner or the quiet time when riding the chair lift when skiing the family.

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