Frugal framework

I have devised a framework to curb my spending sprees. Ever since I’ve had a modest surplus, I tend to gravitate towards impulsive purchases. This seemingly gratifying activity often culminates in buyer’s remorse, leaving me in a dilemma concerning the actual necessity of my recent acquisitions.

I want to conserve funds for worthwhile opportunities, and the aforementioned behavior undermines my sound intentions. As the corporate adage suggests, Intentions do not go too far, only the framework does!

My framework comprises five key questions, each accompanied by a brief explanatory paragraph. This is its initial iteration, and I intend to refine it progressively. The framework primarily targets discretionary desires rather than essential requirements. It’s engineered to scrutinize the habitual everyday/weekend casual doom-scrolling-driven shopping sprees.

Essential needs are generally accommodated, albeit within budgetary confines.

🟢 - Yes
🟠 - Exception
🔴 - No

1. Can I buy two of them?

I have borrowed this question from the minimalist framework. It helps me understand whether I am stretching too much to get it. Will I be skipping my meals to buy this stuff?

iPhone Pro Max: This phone averages around 1,50,000 and, being an Apple fanboy, I really wanted to buy the best iPhone. After applying this framework, I realized I couldn’t buy two of them. Let’s say I could buy two of them; do I need them? No 🔴. Pro versions have a better camera and better battery, but there’s also a budget version that comes very close in terms of performance, battery, and camera 🟢.

Well, there is an exemption to this question for certain things like laptop, car, and home. I definitely cannot buy an expensive MacBook Pro twice, nor can I buy two of the Jimny (the car I drive), but there’s a huge divide between the things I need and the things I want. This question also helps keep in check the temptation of having that thing, as I might sometimes adjust my savings to accommodate its expense.

When it came to buy a laptop, the answer to this question was no, but I still proceeded and I will describe it below!

2. Do I need it immediately?

This question tempers the perceived urgency I often construct when encountering an item online or in-store. It’s crucial to pause and reflect in that moment. Close the iPad, return the item to its shelf, exit the store or application, and evaluate the potential purchase using this framework.

Birkenstocks: Yes, I can buy two of them 🟢. Okay! Do I need them right away in my daily routine? 🔴 They aren’t helping in any way, as I can’t wear them to the office, nor can I take them to the beach. They are yet another fad these days!

T-shirts: Affirmative. I can and wish to purchase several, thereby addressing this seasonal requirement without further concern 🟢. Now, are they an immediate necessity? Ummm… No! I can postpone the purchase, but for how long? The subsequent question explores this.

Shorts: Question 1: Yes. Question 2: A qualified yes, bordering on no! So, let me proceed to the next question for this item as well.

3. Can I defer it?

A positive answer to this question will conclude the evaluation.

This question acts as a crucial checkpoint that can help mitigate potential financial missteps 🤞🏽. In the digital age, multiple avenues exist for purchasing an item. It can be acquired from a physical retail store or directly from the brand’s official website. Frequently, if not exclusively, the item is also obtainable through major e-commerce platforms like Amazon or Flipkart, often at more competitive prices or with additional discounts.

Occasionally, comparable refurbished items in good condition are also an option.

Thus, if I am in a physical store, can I postpone the purchase and seek the same item online? Can I delay acquiring it until an offline sales event?

When shopping online, I typically ascertain a fair price by comparing across several reputable applications. Another consideration is the timing of the next online sale. Both Amazon and Flipkart frequently host online shopping sales throughout the year in India.

All the above items marked in green can be deferred until the next online sale period. I acknowledge the possibility of not finding the exact desired item during that period, but this is not an urgent requirement.

Exception: Laptop & Car. A laptop may be exempted from this question based on necessity. In my situation, I lacked one. I was managing my tasks using a work-issued laptop, but it had numerous usage limitations. Accessing my personal local devices from the corporate machine was restricted for evident security reasons. I needed to acquire a suitable personal laptop promptly for working with Raspberry Pi and internal automation peripherals. The car was similarly exempted for analogous reasons.

4. Is this the best option?

Nothing escapes this rule, not even laptop and car. This question ensures that if I’m buying something, I’m buying it right.

Car: This question ensured my four-wheeler needs would be met for the next 10 years. It also confirmed no impending need to upgrade my vehicle in the near future. It guaranteed satisfaction in using the car for daily commutes and comprehensively addressed all my requirements.

The outcome might have been different had I opted for a pre-owned Mercedes. The Mercedes GLE is my dream car, and I aspire to own it one day; however, purchasing another variant merely for brand prestige would not have been a prudent decision. An ill-advised choice could result in financial detriment and failure to meet the intended purpose.

Laptop: This question guided my decision to opt for a MacBook Pro over an Air model. I have been utilizing this laptop for the past three years and feel adequately equipped for several more years.

5. Do I have any other expense lined up?

This is arguably the most challenging question, potentially leading to further recursive considerations. Each subsequent question can be assessed using the same framework to arrive at a conclusion.

Are there outstanding loans? If so, prioritizing their repayment is advisable.

Are there more judicious uses for these funds? Could it be invested? Is there a particular stock on my watchlist?

Am I anticipating travel in the near future? Could these surplus funds be allocated towards enjoying a sunset on a beach?

Do my parents have any needs? Is there an item at their home requiring replacement?

Imagine I have it, what is the impact?

This is more an exercise in manifestation than a direct question. It helps me visualize the potential impact positive or negative the new item might have on my life. I tend to document these reflections in my personal journal and subsequently validate the pros and cons.

Car: I could envision myself owning a car and taking my wife on extended drives. This vision materialized when we undertook a road trip to Goa in our Jimny. A car could save us from unprecedented weather conditions in our city. We could comfortably glide through traffic and go longer distances.

In reality, decision paralysis is a real thing for me, and this framework is my guidance. I am not at all as frugal as I intend to be, but I am closing in on it. Coming from a lower-middle-class family, I tend to pamper my family and myself for only one reason: in the end, nothing matters.

Money is valuable only when it’s put to use to create happiness or more money. Either way, its judicious use makes for a fulfilling experience. The above larger-than-life (according to me) scenarios only come into play after I’ve completed my monthly savings; no such thought crosses my mind before that. ✌🏽