Frugality is a choice. In most cases, It is not something that is forced on you by your circumstances or by your friends and family. Frugality, when done right, can be a great wealth building tool as it helps you save money to invest or pay off debts faster.
Living frugally is about being smart with your money. It's a decision, one that you can make without feeling like you're depriving yourself or others around you. You may choose to live frugally because you want to save more money for retirement, or perhaps because it will help pay off debt faster.
There are many reasons why someone might want to practice frugality—but they all come down to being smart with your money and making smart choices when it comes to how much you spend and save each month. On a closer look, it seems like we spend a lot of money on trivial things that we don't need at all. Almost like shopping mindlessly.
Frugality Is Not Being Cheap
This is a big misconception many people have about frugality. Frugality is not about being cheap. It's about being smart with your money and not spending it on things you don't need or that make you less happy in the long run.Being frugal doesn't mean having a low quality of life. In fact, when you look at it as a way to save money so that you can afford more things later on, then frugality becomes another word for financial freedom—a state where one does not have to worry about making ends meet or paying ridiculous bills every month.
Wealth Building And Frugal Living Go Hand In Hand
When it comes to wealth building, frugal living is on the same page. As you build your wealth through earning, saving and investing, you should try to be frugal as well. This will help you cut down on unnecessary expenses that could otherwise be put toward your financial goals. In fact, there are numerous ways frugality can help with wealth building:Frugality helps in getting out of debt
Frugality helps in saving money
Frugality helps in being more 'productive'
The reason why I put productive on the list is because the less worries you have, the more productive you become. Frugal living might not get rid of all your worries but it can get rid of many unnecessary financial worries.
Frugal Lving To Pay Off Your Debt Faster
Adopting frugal living will help you pay off your debt faster. If you have any debt, especially bad debt, the first thing that you should do is to get rid of it as soon as possible. The best way to do this is by saving money, because if you can save more money and invest it in yourself (i.e., paying off your debts), then eventually, all of your debts will be gone and you won’t have any problems paying them anymore.When people start investing their money into themselves (whether it's investing in their business or just paying off their debts), they are able to earn more money over time which allows them not only save more but also give back more either to themselves or the causes they believe in.
Living Frugally Is Not Meant To Be Permanent
Living frugally is a temporary lifestyle. It’s not meant to be permanent, but rather a way to build wealth and get financially free.Frugal living is not only a means to an end, it can also be the end in itself. If you are frugal for the sake of being frugal and don't have any ultimate financial goals or aspirations (for example, retiring early or becoming financially free), then by all means continue living this way!
Some people enjoy living with less in order to avoid spending money on things they think are unnecessary or frivolous; however, if there is one thing I would like everyone who reads this article to understand is:
frugal living is not meant to be permanent; it's a temporary lifestyle where you spend as little money as possible so that you can save up enough cash so that when your income increases later down the road (as most people's incomes do over time), then your lifestyle won't need an increase either because you already live very comfortably now due to your past efforts at saving up money from being frugal.
In Conclusion
It is important to understand that frugal living is not meant to be permanent. It can be a way or means to build wealth and get financially free. When you have enough savings (put correctly: assets that generate income), you can then spend more freely on the things that matter most in life.
As for those who are struggling with debt and other financial burdens; adopting frugal living will help you pay off your debt faster and get free from these anchors that keep dragging down your wealth building efforts.
Thanks For Reading!
Follow: Young Kedar
Recent Posts;
● Chasing After The Long Tail Of The Market
● Collaboration Versus Coordination In A Tech Driven World
● How Personal Finance Gives You An Edge In The Modern World
● Building Social Capital In The Attention Economy
● These Macroeconomic Trends Are About To Fall On Us
Dolphin Support : @cryptothesis