As the effects of the recession continue to impact American’s where it hurts most (the pocketbook), we’re all looking for ways to save money. But being frugal means different things to different people, and, as one author suggests, means different things than it did a generation ago.

A recent interview with author Chris Farrell on the blog WiseBread.com explores the differences between what frugality meant a generation or so ago and what it means today, as Farrell suggests in his new book “The New Frugality”. The full interview is definitely worth a read, but here are some takeaway highlights for people working out of debt.

• “Frugal” does not equal “stingy”. The “old frugality,” the interview suggests, was about saving money at all costs, denying yourself pleasures being one of the most noticeable of these “costs”. Today, though, frugality means treating money as a tool: saving where you can so you can afford to indulge in things that are important to you.
• Frugality promotes sustainability. Though it’s often applied exclusively to the environmental movement, “sustainable” is an important word for anyone who’s working to stay out of debt. Are your borrowing habits sustainable? What about your shopping and entertainment habits? Part of being frugal is adopting a lifestyle that won’t come crashing down on you if you lose your job or get hit by an illness or some other emergency—which can often lead to filing bankruptcy. Plus, acting frugally is often great for the environment!
• Frugality promotes community interactions. In the old days, people were more likely to pass along baby clothes and other used items when they were finished because people often couldn’t afford to buy new ones. Now, frugal people are returning to that practice because it uses fewer resources and promotes friendship and support between community members. Oh, and it still saves money.
• Frugality can be fun. Making do with less can be fun for a number reasons. First, it often demands creativity, which can mean anything from getting together with friends to figure out a problem to hosting get-togethers at home to save on restaurant food. Second, it often means you need less money, which means you may be able to work fewer hours or retire sooner than you expected—and who doesn’t want a little extra free time?
• Frugality is flexible. If you don’t like the idea of eating cabbage and beans every day for the rest of your life, that’s okay. You can still be frugal. It’s all about figuring out what you do love (new clothes? movies? traveling?) and balancing your expenses so that those things take priority and you don’t cringe when paying your bills, since they’re for things you really wanted to do.

What do you think about being frugal? How are you finding ways to save money? Leave your thoughts in the comments section below!

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