5 Ways Frugality Pays Off

Many people avoid frugality because they see it as synonymous with “compromise” and “denial”.

Frugality – as a practise – essentially involves denying yourself belongings and experiences that you desire. What a terrible concept that is – and what a horrible and boring life frugal people must lead.

Except that’s not entirely true.

As someone who, over the years, has gone from full-on “spender” to committed frugalista, I’ve seen both side of the situation.

Today I’d like to discuss the ways frugality pays off so you can make an informed decision about whether to downsize yourself and try to live a more frugal lifestyle.

Ways Frugality Pays Off

As it turns out, being frugal isn’t really a painful or unpleasant way to live.

Oh, for sure it can feel a little “uncomfortable” at first as you get used to not spending money but the same could be said for any new habit.

Over time you get used to it and adopt frugality as a lifestyle. And once you’ve done that, you’ll find very few people ever go back to their previous materialistic ways. But why?

Frugality Teaches You Value

The concept of frugality doesn’t just describe not spending money. For most people who describe themselves as “frugal” it relates to not spending money on pointless things.

It relates to ensuring you get the very best value out of every dollar you spend and focusing your spending on the things in life that will truly bring you pleasure.

As a result people adopting a frugal lifestyle often find themselves carefully analysing their life. They are forced to assess what really matters to them – and how they’re frittering away money on things that really don’t bring them much pleasure.

They also learn to appreciate what they already have.

The reason? Quite simply when you start to appreciate just how much pleasure you get from walks in the park, visits to the beach, spending time with family and so on you start to realize how rich you already are.

You start to understand that “stuff” is so much less important than quality relationships, memorable experiences and freedom from financial worry.

All too often we in the West fall into a brainless pattern of behaviour. Slowly, bit by bit, we become consumers.

Work, earn, spend, repeat.

We forget about all the pleasures that don’t involve spending money and becoming frugal forces us to address this issue. It forces you to appreciate what you have and to realize how great your life really is – and that’s a pretty powerful way in which frugality pays off.

Frugality Teaches You Self Discipline

When you adopt a frugal lifestyle you will, by default, stop wasting so much money. You’ll start to carefully consider your spending and to make judgement calls about whether you really want to spend money on a certain item or not.

• How much pleasure will it truly bring?
• How long will it remain in use – or will it soon find it’s way to the garage, loft or cupboard?
• Could you rent or borrow the same item?
• Or buy it second hand?
• Or make use of what you already have?

This analysis, while difficult at first, soon becomes second nature. You realize that spending money is almost like an addiction; and one that many of us suffer from unknowingly.

The self-discipline (and self-awareness) that frugality provides is therefore one more way in which frugality can really pay off – and not just in a financial sense.

Frugality Gives You More Free Time

What happens when you suddenly start to spend less each month than you have in the past?

The answer is that your money goes further. Halve your expenses and your salary goes twice as far.

This is a powerful realization.

What this means is that people who are willing to live frugally can often reduce the amount that they work – and still successfully cover their monthly expenses.

Suddenly you can drop from full-time to part- time work, or you can move from a highly-paid but stressful job to a more relaxed yet lower paying options.

Being more frugal therefore can break the cycle of work, earn, spend, repeat. Suddenly we can add “free time” into the mix.

Imagine taking an extra day off each week – or even more.

What could you do with that time? What adventures would you go on? What new hobbies could you take up? Who could you spend more time with?

Yep – another way that frugality pays off is that it can give you more freedom over your time – and that’s priceless.

Frugality Provides You With Options

When you realize that you no longer need your high-profile job suddenly your eyes are opened to the possibilities of life.

You’re no longer working yourself into an early grave just trying to keep your head above water financially. You’re no longer trapped by debts owed and by over-bearing bosses.

Changes can happen.

You can move jobs, start up a business, take up a new hobby; heck, you could even go off travelling.

In other words frugality – in other words living well below your means – can open up all sorts of options and opportunities for the future that simply aren’t possible for those living the consumer lifestyle.

Frugality Makes Financial Freedom Easier

The key to financial freedom is having “spare money” to invest or buy assets with. The more money you have available after your monthly expenses, the quicker you can achieve financial freedom.

Put another way, the greater the percentage of your income that you can save for the future the sooner you can reach financial freedom.

Frugality makes this possible. Frugality, by it’s very definition, involves downsizing your spending. As a result, assuming you keep the same job, you’ll have far more money available each month.

Money you can save. Money you can put towards your future. Money you can invest.

Indeed frugality means that even those individuals on a modest salary can start to put money aside for the future and start to plan for financial independence.

Conclusion

Frugality pays off in a lot of ways. The reality of living more frugally is that for most people the benefits far outweigh the costs. If you’re considering adopting a more frugal lifestyle right now all I can say is “go do it” – I’m confident you’ll never look back longingly at your old life.

How has frugality paid off for you? Please leave your thoughts in the comments section below…