Why Frugal?

“Why” is always a tough question to answer. In counseling, it is better to never ask a counselee “why” but rather “what” may have caused the behavior or emotion. I will attempt to answer why one should live frugally in just one sentence. Frugal living delays near term personal gratification in order to create financial freedom for our future selves. Perhaps Benjamin Franklin said it best, “be industrious and frugal, and you will be rich.”

Before expounding on this “why”, it’s prudent to take a quick look at the counter argument to being frugal, which is glaringly obvious. Our time here on earth is limited and unfortunately, for some, cut terribly short. Why should one practice self-deprivation to save for a future that may never come? Put another way, if life is not a dressed rehearsal, shouldn’t we live each day to the fullest to include our spending habits?

I’d offer three counters to this very valid argument against a frugal life. First, living frugal is less about spending habits and more akin to a lifestyle or character trait. I’d even go so far to say the choice to live frugally is closely related to maintaining a relationship with a partner and even practicing some faiths. Therefore, those who early on in their lives make a commitment to living frugally, probably wouldn’t know any different. Simply put, frugal is who they are.  

This is not to suggest it is impossible to adopt frugal living later in life, but it is admittedly much harder. Bill Gates suggested once that spending habits are most likely established in high school. Not sure what the basis for his conclusion was but makes sense. For me personally, I think I was pre-programmed to adopt a frugal life due to my upbringing. It’s in my DNA so to speak.

Second, the counter argument to a frugal life is anchored in the assumption that a frugal person does not live a fulfilling and enjoyable life. Nothing could be further from the truth! Frugal does not mean stingy or cheap. While I firmly believe frugal living is a truth to build wealth it can also be fulfilling in the here and now. Finding value, discovering “life hacks” and making good financial decisions can be fun! Furthermore, I strongly believe a key part of frugal living is giving back, either time or money, to the cause of one’s choosing. Let’s call it the post revelation, Ebeneezer Scrooge model for frugality!

Lastly, as a final counter to the detractors of frugal living, I’d submit that the reward of achieving financial freedom far outweighs any regrets for passing on a want. While it’s true life can be tragically short, nowadays the odds for longevity are in our favor. Those of us workers who chose not to live frugally in our earning years, may risk never achieving financial freedom.

What is financial freedom? Most commonly it means living the life YOU want to live without worrying about how to pay for basic needs. Maybe financial freedom looks like retiring early, moving to a beachfront condo, fancy dinners every night, or travel. Maybe it’s just quitting work in order to frequently visit grandkids.

Many Americans won’t reach financial freedom because of poor personal finance decisions in their younger years. Retirement age for many is now in the 70s or quite possibly, never! The essence of frugal living is considering, which is more important, instant gratification in our 20’s or retiring early someday. Seems like a simple question to me! Furthermore, those who are really successful at frugal living could not only achieve personal financial freedom in their lifetime, but also pass on generational changing wealth to heirs.

Why frugal? Simply put, the reward of future financial freedom far outweighs the near-term sacrifices by most anyone’s measure.

Look for, Being Frugal, a Truth to Build Wealth, coming to Amazon in early 2025!

Looking for a good how-to on wealth building? Check out my book, Millionaire on a Worker’s Budget: Five Financial Truth’s to Build Wealth on sale now at Amazon!

Interested in rental property investing? Look for Collect Rent, Don’t Pay It: A Beginner’s Guide to Rental Property Investing on Amazon to learn how our family turned rental property investing into a successful side hustle!

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