Frugality Is Making a Comeback
When you hear the word "frugal" what comes to mind? A grandmother or aunt you once knew who saved rubber bands and reused aluminum foil over and over? Or worse perhaps, a miser who lives in misery as he obsesses over his bank account and investments.
Frugality does have a bad reputation for some. But it's making a comeback.
Actually a healthier way to look at the idea is about putting the right value on money and what we buy with it.
Our whole society is built on consumerism. Experts estimate that about 70% of our domestic economy in the US is driven by consumers. Sadly much of that activity is financed by credit cards. And the whole machine is kept running by a sophisticated and ubiquitous advertising industry which knows very well how to tell us what we want.
Frugality should not be viewed as deprivation but a reversion to the norm for how we view money and saving it and spending it. Through much of our history in the US, we had to deal with surviving on much less.
It really is about how we view money, and how we view ourselves in light of the things we buy.
At its best, frugality is about maximizing value. So often our purchases meet short-term emotional needs rather than serve as investments in quality products built to last.
Our landfills are full as a result.
So to start, we should see frugality as the more normal human experience, in history and currently around the world today. It's not stinginess, but a wise and balanced allocation of resources.
What are the benefits? Less financial stress, less clutter, and perhaps a new appreciation in life for the things that money cannot buy.
So what do you do to begin adopting a frugal lifestyle?
1. Budget. We'll talk another time about the method, but matching your expenses to your income is a great place to start.
2. Learn to distinguish between needs and wants. That line can get blurry, but sometimes you know in your heart that the purchase you just made really satisifed a want.
3. Understand that who you are as a person is not connected to what you wear, what you drive, or what objects are in your living space.
4. Pause. Retail is not the problem; I am the problem. But if I can avoid impulse purchases, that is the start of mastering my emotional connection to unplanned purchases which seem so appealing at the mall.
It is not easy! The whole system is structured to induce us to spend, but we can learn to resist.
Money in the bank at the end of the month is the reward. It's worth it.
Copyright 2023 Personal Finance Reports. All Rights Reserved. No part of this content may be reproduced or used in any manner without prior written permission.
Disclaimer: The views expressed on this website reflect the personal opinions and experiences of the writer. Nothing in this article constitutes financial advice in any way. Information on this website should not be relied upon for investment or business advice. Please consult with a qualified financial professional before making any financial decisions. 3800219