I have curly hair. When it's cut well, it takes relatively little time to style and complete strangers comment on my good fortune to have naturally curly hair. When it's cut poorly, it hangs frizzy clumps and adds years and pounds to my appearance (neither of which are appreciated!). As a result I have gotten used to paying for expensive haircuts.
Then, last year I did the unthinkable and did a walk-in at a "chop shop." I had been paying $65+ for haircuts at a hoity toity salon, and had experienced 2 bad haircuts in a row. I figured it couldn't look worse so why not be frugal and save a few bucks? Lo and behold I lucked into meeting Erica whose chair happened to be empty at the time. She proceeded to give me one of the best hair cuts I have ever had for a mere $24. I tipped generously, congratulated myself on saving so much money, and went home happy.
For the past year I have continued to see Erica and I have been pleased that my frugality has purchased such great haircuts. So last Friday when I went in for a trim I was surprised when the cashier said, "Just a haircut today? That will be $32." Turns out Erica had her 1 year anniversary with the salon and raised her rates. So now - for the same time and effort - Erica was going to make an extra $8 per haircut off me. As I was driving home I was bemoaning to myself that I was going to need to try my luck with someone else again.
Thankfully it struck me how very foolish I was being to even think about switching stylists in the name of frugality! Erica had been giving me great haircuts for a year, and now I was going to begrudge her an additional $8 per cut? I've spent some time thinking about frugality over the past few days, and have decided that this particular character trait can be a vice or a virtue depending on how it is used.
Frugality is a vice when our penny-pinching begrudges others the opportunity to earn a decent living. Erica raised her rates after a year of demonstrating her competence. She earned the right to increase her level of pay.
Frugality is a vice when the net effect is one of treating others in a way that we would not like to be treated. Most employees expect to get a raise every year in their job. How would you feel if your boss said, "Oh, we'll be hiring someone else because we don't want to pay you more?" In my case as a consultant, how would I feel if my clients bailed on me every time I had to raise my rates in order to keep up with inflation and taxes?
Frugality is a vice when it is a close-fisted, self-serving approach to life that would not be a sustainable approach were everyone to do the same. It's not surprising that most advocates of frugality are generally folks who prefer not to engage in earning activities. If everyone in society was focused on "dropping out of the rat race," the workforce would be a sad and discouraging place to be. Thankfully there are many people who enjoy producing goods that benefit others, and who enjoy doing work that creates good jobs for others who need to earn their living.
On the other hand, exercising financial prudence in order to live below our means creates space in our lives that allows us to make wise decisions about how to best use our time and talents to benefit others. When we minimize waste in our lives we won't find ourselves sticking with a job we hate because we have gotten ourselves into a bind with expenses. Instead of desperate decisions, we'll be able to think more generatively. I think we can all agree that our world would be better off economically, socially, and even spiritually if all people were able to live below their means and avoid using credit. Think what problems we could attack if we had the resources currently going to debt management focused instead on creating new products to improve human lives, educating our children better, and serving the weaker among us.
In my work I occasionally run into people who are on strict frugality plans in order to buy themselves out of jobs they hate. While I admire their tenacity, I wonder if their frugality will actually result in a life that is happier? As the Career Encourager, I certainly desire for all people to have work that is fulfilling and productive for the good of society and I hate to see people stuck in jobs that they are not suited for. But after years of doing this work, I also know that when people stop focusing on "not spending" and instead focus instead on creating a little financial margin in their lives, they are eventually able to shift to work they enjoy more in the process. It's a more sustainable, repeatable approach that benefits more people along the way.
So next time you are tempted to switch maids, gas stations, barbers, or restaurants because of a moderate price hike, ask yourself if you are begrudging someone else the very thing that you want to have for yourself - a productive and profitable life.
Forget frugality, I'd pay more to find someone who can color my hair right!
You do make a good point though. We never think about people who work in positions such as this who may not receive a yearly raise.
Posted by: Rachel - The Employment File | February 27, 2008 at 04:28 PM
Peggy:
This is an incredible post. You have done a great job of articulating a powerful life lesson, while revealing how it also can touch upon our career experience. Thanks!!
Posted by: Ann Bares | February 27, 2008 at 05:15 PM
Lovely post. (I have curly hair too, and also decided some time ago that I'd just have to settle for $65 hair cuts, but I'd love to discover an Erica of my own!)
What I like about this post is your frankness and honesty about what really is a very human set foibles that we all share. What I would add is that the very fact that Erica charged relatively little in the beginning may actually have contributed to your reluctance to pay her any more a year later. We all do it, assigning a value to a product or service that is directly related to what we pay for it. In other words, even though you loved the hair cut, and knew you could have been paying $65 for it, money is a SYMBOL THAT FUNCTIONS, and it was functioning on you -- as it functions on all of us, because of the very economical culture that formed us.
This is one reason why poorly-paid people continue to be poorly paid... and why they, as well as everyone else, have such a hard time addressing (or even feeling justified in addressing) the problem.
Posted by: almostgotit | February 28, 2008 at 05:50 PM
I love how you take normal life experiences and tie in a great 'career related' lesson. I found a great hairstylist too. After my first haircut with her I vowed no one else would touch my hair again! Her cuts are about $45, but it is sooo worth it to me to feel beautiful and confident about how I look. My years of feeling muttly are OVER! I know the day will come when the cost of her service will rise, and I will gladly pay it. I have followed her across 3 or 4 salons. To me she is a star player that I don't want to lose! I'll follow her and pay what it takes! (Though I can't visit her as often as I'd like because I'm job hunting right now)
Posted by: MMG | February 28, 2008 at 07:36 PM
Thanks for all the comments and insights! I like the point almostgotit makes about how when we start off charging little for our own services, we devealue ourselves and can get into a cycle that keeps our wages down for years to come. We need to ecourage each other to charge a fair price for the work we do!
Posted by: The Career Encourager | February 29, 2008 at 10:39 AM
I recently read this Christine Kane blog that addresses this very topic. She shares an example very similar to what you shared, and ends with some stellar comments. I think you'll want to check it out.
http://christinekane.com/blog/who-do-you-think-you-are/
Posted by: MMG | March 09, 2008 at 10:36 AM
This a great blog. As a young person I am constantly told to be frugal and reduce my spending. However the reasons given are usually problematic or unrealistic. Your explanation is wonderful--it provides a practical approach to the benefits of frugality. Not just yelling and finger pointing.
Posted by: Allison | March 25, 2008 at 03:20 PM