Be Frugal

When we become affluent, we tend to grow insensitive to expenses. It is easy to say "We can afford it," or "Why be so stingy?" But as each department increases its expenses, it has a major effect on the company's profitability.

Further, once we accept this lax attitude, it becomes very difficult to tighten our belts when we encounter hard times. Therefore, whatever the economic situation may be, we must maintain a frugal attitude.

Minimizing expenses is the simplest and easiest facet of management in which everyone can participate.