Penny Pinching Your Way to Prosperity

Of the many different personal finance "personalities", one of my favorite is Michelle Singletary. She's not as well known as Suze Orman, David Bach (another of my favorites), and Dave Ramsey, but she's got some great advice.

Michelle is the personal finance columnist for the Washington Post. She often writes about how to save money -- radically save money -- and for this I really, really like her. She and I have very similar philosophies, so if you like what I write, you'll probably enjoy her columns and books.

The other day I saw that she announced her annual penny-pinching contest. In it, she notes that penny pinching is the path to prosperity. In addition, she commented on the difference between a penny pincher and a miser. Since many people confuse penny pinchers with misers, I thought I'd share Michelle's words on the subject with you:

There is a difference between being miserly and being frugal. A miser is stingy.

A miser is someone who wouldn't spare a dime for his brother or anybody else in need. I know plenty of penny pinchers who are extremely generous. They just hate wasting money on stuff that doesn't matter.

I'm not sure I'd consider myself a penny pincher (though I would consider my wife one), but I am frugal. However, we also try to be generous and see every dollar saved on something we don't need, won't use, or that will wear out quickly as one more dollar that can be given to help those in need. I think this is what Michelle is talking about as well.

Michelle also shares two Chinese proverbs in her piece that I thought you might enjoy as well:

• Diligence is the basis of wealth, and thrift the source of riches.

• The spendthrift rich never have enough, but the thrifty poor always have a little put by.

Well said! These are true. As we've learned before, spending less than you earn is a sure way to become wealthy.