I talk a lot about frugal living and living frugally. But why? Why should you do this? Living frugally takes time and mental energy. Why would you do this?
I live a frugal life and enjoy it, but that is my own experience. Why am I spending time convincing you to live a frugal life?
Well, here are five reasons you should start living frugally.
Better Savings
Have you noticed that it is easier to spend money than make it? This is because human wants are insatiable, meaning we always want more. So, there is a tendency to overspend, especially when you have money and aren’t living frugally.
If you live stingily, you will be forced to spend less and save more. Don’t get it wrong; you will spend only when necessary.
For instance, living frugally requires going shopping with a list. A list helps you make a budget, and the budget helps you avoid impulse buying.
In fact, several studies show that people who go shopping without a list or budget mostly buy more stuff. And if you’re one of those people, you’ll probably come back home each time wondering why you spent all that money.
If you only get what you need each time, you will save more money than you’ve ever saved. Those savings can fund your goals and relieve you from financial stress. In summary, it is rewarding.
Bills
Some people are overwhelmed with bills they cannot pay, which makes them work more jobs and spend more time away from home. In many cases, the problem isn’t that they’re not making enough money; it’s that they are not spending their money properly.
Living frugally allows you to spend more time at home. You will have more money to pay your bills, and you won’t need to spend more time at work or hustling to make ends meet.
Sometimes, you can get household items free of cost by requesting free samples directly from suppliers. This way, you’re still getting value from the product and saving money that can go toward other bill payments.
Financial Freedom
Imagine what it would be like not to have money problems. Imagine not having to spend most of your life struggling to pay the mortgage, work multiple jobs, or worry about the children’s school fees.
Living frugally makes that life possible. You can become financially independent and not worry about all these things. But you have to make the sacrifices now.
Living frugally involves putting off some things now for a better financial future. It means denying yourself some pleasures and adventures while focusing on the ultimate goal—financial freedom. Of course, you may face some stigma that will dissuade you, but you’ll get the reward if you stay the course.
Preparation for Emergencies
If there’s anything life has taught us, it is that anything can happen at any time. While you cannot stop some things from happening, you can better prepare yourself to manage them.
Having a savings culture will ensure you have spare money in the bank for emergencies. You don’t have to feel defeated or depressed and run around for solutions; living frugally is the solution.
And emergencies don’t have to be negative; what about the good ones? Have you heard that a longtime friend is getting married? You will have spare money to get them a gift or travel to their wedding.
You found that you have more leave time than you anticipated. You’ll have the money to add more adventures or destinations to your road trip. Living frugally means more money, and more money means you can handle any unplanned financial situation: good or bad.
Investments
If you want to build wealth and truly achieve financial freedom, you must begin to invest. Investing when you’re saving money is easier because you have the capital to do so.
And as you invest and continue to save, you will make more money in the long term – perhaps, enough to retire early and start a business. That’s, of course, if that’s what you want.
(Although investing is good, you could go bust if you don’t do your due diligence. Many people lose their life savings on bad investments and start all over.
Always investigate before investing to ensure you don’t lose all that money you’ve saved up by living frugally. Also, be interested in the field, whether it is real estate, stocks, crypto, or sports. And lastly, get professional guidance.)
Read More:
- 6 Best Apps To Scan Receipts for Money
- The 15 Best Reading Apps for Book Lovers
- The 9 Best Budgeting Apps To Make Managing Your Finance Easy
