Most people live a frugal lifestyle so that they can be comfortable when they retire or become financially independent. A curious Reddit user wanted to know whether there were people who achieved financial independence through living a frugal lifestyle or whether being frugal was overrated.
The user wondered whether people felt like they were missing out on something by being frugal. Other Reddit users chipped into this conversation and aired their opinions and experiences.
Make Money
One user pointed out that people who make more can become financially independent faster, “One thing to keep in mind is that financial independence is going to be so much easier for a family making $100k compared to one making $30k. Sometimes, frugality isn’t enough, and increasing your income is the place to put more of your efforts. That’s not to say frugality isn’t worth it or helpful, just that your particular context matters.”
Sharing Financial Responsibilities and Memories Helps
Another said their journey to financial independence through frugality was through sharing financial responsibility, “One of the best decisions was sharing a car with my husband most of our time together, also getting married in Vegas, generally taking camping trips or “add” to work travel, living a modest life with hand me down furniture and thrift store clothes.
Being Frugal Does Not Mean You Are a Miser
One user said that one does not need to be frugal to enjoy life, “You can be frugal and also take amazing vacations. Frugal doesn’t mean being a miser and saving every possible penny.”
Conspicuous Consumption Is Pointless
One member did not find value in consuming things conspicuously, “In a word, yes. I know people that have used frugality to build wealth. I am not sure what you mean by missing out. Conspicuous consumption is pointless. I have never, even when I was young and surrounded by peers and potential role models engaged in conspicuous consumption, understood it. I have friends who work two or three jobs to keep themselves in debt. The amount of money they spend on stupid stuff they do not actually want just astounds me. Occasionally, I will ask them why they made a particular dubious purchase; to date, I have never received a well-thought-out answer.”
Consistent Investing Works
One user noted that they were able to be financially free after investing for over a decade, “Me!!! I did it for 10 years, invested, and now taking a year off work!”
Someone Else Is Happy With Less Than You Have
Sometimes all it takes is a nudge in the right direction; as one user points out, “This phrase helped me so much: “Someone else is happy with less than you have.” It helped me not spend frivolously… I’m not suggesting you live as if you’re in poverty if you have the option not to. It’s just to give a perspective. You don’t need “everything”.”
Spend Money on What You Love
via DepositPhotos.com.
Another user gave a short story about how someone close was frugal but missed out on things they loved, “My partner’s father saved several millions because he had a good job and lived quite within his means. However, I would advise everyone not to assume saving will mean you get to spend it. He had planned on traveling but ended up dying in his late fifties. His children inherited well, but I always wonder if he regretted not traveling like he wanted to or as much as he could have. I think being frugal is great, but I do spend money on the things I really love, and I don’t feel guilty about it. Anyway, it’s absolutely possible, OP. But imo it has to be combined with some sort of substantial yearly income.”
It Is About How Much You Keep, Not How Much You Make
A user argued that how much you make is not important, but how much you keep makes all the difference. “My uncle once told me “It doesn’t matter how much money you make, it only matters how much you keep.” “If you make 30k and save 5k, you make 5k….if you make 80k and spend 80k, you make nothing.” It stuck with me, and he was totally right! I’m almost 50 and expecting to retire by 55. Most of my friends make a lot more money than I do, yet they’re heavily in debt with no end in sight. I’m just glad that I listened and made the necessary adjustments to maximize my income!”
Choose Where To Spend and Where To Be Frugal
“I’m frugal in some areas where spending more doesn’t significantly improve my quality of life. I splurge on areas where spending more does significantly improve my quality of life. By making frugal choices, it allows me to splurge on things that are important to me and also to save for the future,” narrates another user.
You Need a Significant Income or Inheritance
One person says it can be hard to be financially free unless you have a sizeable income, “Frugality is going to help, but to achieve financial independence, you mostly need a significant income/savings rate or a sizable inheritance. Using coupons at the grocery store will only get you so far. Most people don’t reach this goal until their retirement.”
Some Frugal Lifestyles Are Not Worth It
A user illustrates how their grandfather lived frugally and died, leaving his wealth to other people, “My grandfather. He was the most frugal person I’ve ever met in my life. He lived way below his means. He lived in an old trailer, drove old cars & never ate out or went on any kind of vacation. He passed away last year with over 100k in the bank & that’s after the 10k-a-month nursing home he was in for over a year before he passed.”
Some People Are Frugal for the Right Reasons
A user highlights how a friend of hers enjoyed a great life despite being frugal, “I am frugal, but this friend is more. She happily drives a well-cared-for 30-year-old car, buys a fixer-upper in a less desirable neighborhood, and wears thrift clothes. Her house is beautiful, is paid off, and she’s put two kids through college with no loans. She is doing great!!!”
Live Like a Pauper and Accept It
Another user offers two succinct ways to become financially free through frugality, “
You can only get out of poverty when you
- Accept it and
- Live and spend like you are impoverished
Dw and I started with $600 savings in our Washington mutual joint checking account. No handouts. No inheritance. No excuses. We live very comfortably today (by our standards) and am grateful every day.”
Grow Your Income
“You don’t get wealthy by pinching pennies. You have to grow your income consistently and diversify,” advised another user.
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This article was produced and syndicated by A Dime Saved.
