15 Benefits of Frugal Living
Living frugally is a way to improve your life by managing your time and money. There are many benefits of frugal living.
The most obvious is having money left over at the end of the month and cash in savings. Frugal living will increase your savings. Saving money has always been difficult for me. By living frugally, I could save money, which transformed my life.
But other perks need to be acknowledged because of their positive impact on your life.
Some benefits of frugal living are more than having more money in savings and being debt free. The benefits include better health, improved marriage, and improved social relationships.
There are some not-so-obvious benefits of frugality.
15 Benefits of frugal living
#1 You Could Stop Living Paycheck To Paycheck.
61% or 203 Million Americans are Living Paycheck To Paycheck. That’s up from 55% a Year Ago!
It’s no wonder because, according to prnewswire.com, 33.5 million Americans spent more than they earned in the past six months.
It’s not just the working poor living paycheck to paycheck. It reaches all income levels.
More and more people live paycheck to paycheck. Usually, it’s because of consumer debt or a lack of planning. Sometimes it’s both.
This is where frugal living comes in. By living frugally, you’ll be able to save money, dig your way out of debt, and stop living paycheck to paycheck.
Debt is paying today for what you bought yesterday….; say it again and let it sink in.
Unfortunately, when you’re paying off debt, it can take months or even years. But that doesn’t mean your quality of life needs to wait to begin improving.
It’s simple: make a plan to become debt free, stick to it, and you’ll reap the rewards of frugal living.
#2 You’ll Experience Less Life Inflation
Lifestyle inflation occurs when a person spends all of a raise or promotion.
When a person receives a promotion or raise, the first thing they do to acknowledge their accomplishments is get a lifestyle upgrade.
Sooner or later, they’re left wondering why they’re still not progressing financially.
Well, for one, your increase in spending needs to be reasonable and shouldn’t include the entire amount of the raise or promotion. And two, you need to save or invest the other portion.
Lifestyle inflation is frequently the result of putting too much importance on acquiring stuff. And failing to budget, save, or invest money.
To avoid lifestyle inflation, prioritize your gains. Budget your money and make financial plans. You’ll need financial discipline because most people see more money as an opportunity to spend more. It’s just human nature.
#3 It Puts You In The Power Position
Have you ever been in a situation where you had to do something now?
Did you make the best decision?
Or later, did you think you’d made an enormous mistake and lament your decision?
Many years ago, my car broke down, and the mechanic told me it would cost more to repair the car than the car was worth.
I was challenged to come up with a good solution.
The question was, do I want to spend more money than the car is worth to have the car repaired? Should I purchase another used car? The most expensive option was, do I want to buy a new car?
When we’re under the pressure of “I need it now” OR “I don’t have the money”; it’s the worst time to decide.
The best decisions are always made from a position of power and not from a position of desperation.
Saving money will help to put you in a power position. You can say “NO” when you have adequate funds and stand by your decision. You aren’t in the place where you have to take a crappy offer.
#4 You Can Afford To Give Generously
A benefit of living frugally is you can give generously to family, friends, or a cause in their time of need.
Gone are the days when the script is flipped, and you’re the one asking to borrow money, getting payday loans, or wishing you could help.
I’m talking about actually living frugally: taking the time to spend money carefully and buy quality over quantity. Having more than enough so you can help yourself and others.
Frugality is not becoming miserly or stingy members of society.
Generosity is often a sign of frugality, and It’s easier to give when you have the funds available.
#5 Free Up More Time For Important Things
You’ve often heard that “time is money”…, well not exactly. You can earn more money, but once your time is gone, it’s gone.
I know people that have turned down promotions and career advancements because it would require too much of their time. This meant they wouldn’t be able to do the things that were important to them.
Making more money wasn’t that important to them.
In each of these cases, the people involved didn’t need more money. Their finances were already under control. They budgeted, planned for the future, and saved money. Living frugally enhances your self-control.
They were living frugally and knew what was important to them. And you can too.
They were able to concentrate on more important things.
#6 Helps You Define What Is Important To You
Let me ask you a question, what’s important to you?
Most people I’ve asked can’t give a real answer. Usually, they say, “I can’t wait to get home” or “the weekend.” These answers are inadequate. They don’t tell me what’s important to you.
Probably a better question would be, what would you do if you didn’t have to work?
Would you still work your present job, would you move on to something else, and what would that something else be?
Most people haven’t taken the time to define what’s important to them.
They have not taken the time to plan their lives or to set financial goals. They’re stuck in the work/home-work/home everyday syndrome.
Frugal living is a way to make dreams come true. It allows you to plan for what you want and plan how you’ll reach that goal. But first, you need to start with a plan.
#7 Reducing Clutter And Self-Sufficiency
Let’s face it; stuff owns us. We clean, sweep, repair, and reboot it. We, or at least most people, try to care for what we own.
When you live frugally, you take a firm stance on quality. You understand that the more trivial things you own equates to a deduction of your most precious gift: time.
Reducing clutter means you’re less likely to make unplanned purchases. Fewer unplanned purchases mean less spending and less stuff to care for.
Being frugal makes you more self-sufficient because you decide to do more with less; hence you spend less. Being thrifty is a part of being frugal. You also learn how to plan not only money but also time.
#8 Engenders An Attitude of Gratitude
The problem with credit is that it’s so available to almost everyone for almost anything. If you want it now, buy it now.
If you don’t have the money, no problem, we’ll lend you the money (at a price).
See it today, buy it, take it home, and pay for it for a long time.
It’s hard to have an attitude of gratitude if you don’t look forward to having something.
If you see it today, love it, and buy it today, there’s no anticipation of ownership.
Anticipation of owning is part of what makes you grateful when you do get it. And working for it, saving for it, and making a choice between this item and some other item is all part of building thankfulness.
Being thankful for something leads us to have better well-being because it harnesses a continuous attitude of gratitude.
#9 Good for the environment
Frugal people are notorious for buying second-hand and recycling because most used items are less expensive than new ones. So, why is this good for the environment? Without going into too much detail, when we manufacture an item, it requires natural resources.
Everything does! Including making bottled water, and that’s not including the bottle.
When you buy an item second-hand, you are saving the environment because the natural resources needed to make this item have already been used.
On the other hand, buying second-hand, prevents the need of using more precious resources to make another item like the one you purchase and toss away.
Did you know it takes about 2,700 liters of water to make one cotton shirt? That’s approximately the amount of water you should drink in 2 ½ years.
The next time you decide to buy something or toss it away; think about the environment. Do you really need it to be new? Can you resell or donate the item to prevent an unnecessary purchase?
#10 Reduces Stress
A question that’s frequently asked is, “How can frugal living reduce financial stress?”
The answer is simple: having money (savings and investments) and a financial plan to go along with it reduces stress.
Being prepared takes the guesswork out of almost every endeavor (planned or unplanned), you may embark on. Additionally, knowing your bills are covered while having cash set aside for “the just in case something goes wrong” is a recipe for peace of mind.
Frugal living leads to financial security.
#11 Improves Social Relationships
Many people buy to impress. “We buy things we don’t need with money we don’t have. To impress people we don’t like.”― Dave Ramsey
We’ve all heard of “keeping up with the Joneses” and the detriments it takes on one’s finances. In today’s society this key principle of financial success has become a lost one: “If you can’t afford something, don’t buy it.”
I’m talking about fancy cars, clothes, vacations, and many other things people buy and don’t need or want.
If you are in a relationship, group, or circle where you need to go broke just to impress other people, it’s most likely a superficial and toxic one. Try going on a three-month frugal lifestyle trial and see who sticks around.
Keep it real. This means you should be respected, loved, and cared about because it’s you and not because someone likes or approves of your possessions or lifestyle.
Frugal living can improve your social relationships.
#12 Gives a Sense of A Larger Purpose
As you take control of your money and become debt free, you’ll begin to plan and save for life events like retirement and anniversaries.
You’ll also discover the ability to donate and give to charities. Frugal living affords you the opportunity to be a part of something bigger than yourself. Contribute to your family, community, and world.
Most people don’t think that having money causes you to see life differently. Your horizons broaden, and you can live life on your terms. It makes a difference when you can confidently change your annual staycation to an international vacation without feeling financially overwhelmed.
In the past, you might have never considered exploring new cultures, arts, or giving money away because you were struggling to stay afloat. Or maybe, world travel or philanthropy is one of your dreams. Living a frugal lifestyle, dreams can come true.
Frugal living gives you a sense of a larger purpose. You can do more than go to work and sleep. There are so many things you can do. You have the time and money.
#13 More Time for Important Things
Being frugal gives you time for the more important things in your life. There’s an unfunny joke: “if I have the money, I don’t have the time.”
I know it’s not all that funny, but it’s the truth for many people. They either have the time or money, but they don’t have the time and money at the same time.
Living a frugal life, you take the time to plan what’s important to you instead of being caught up in our fast-paced society.
#14 Opportunity to Learn New Skills
Ever wanted to be more and do more but needed a coach, private tutor, or to enroll in a professional course?
With more time and money, you can self-invest and learn that new skill.
Educational investments can be for personal, career, or financial improvements. A new skill could be anywhere from learning how to: minor repairs around your home, or car, or using these skills to launch your own business, a side-hustle, or level-up in your present employment.
Regardless of how you’ll use it 99% of the time, a new skill equals more money and more freedom.
#15 Reduces waste
Frugal people waste fewer products and services because they concentrate on getting value for their money. Frugal people tend to care for their stuff to prevent the need for repair or replacement.
If you are living frugally, you are trying to get the most bang for your buck, and it just doesn’t make sense to throw away items that are still usable.
In the category of waste, I’m going to include wasting food. Food waste is estimated at 30-40 percent of the food supply in the United States. This figure is provided by https://www.usda.gov. Now, let’s equate that waste to dollar bills: this is entirely too much food and money to throw away.
Conclusion
There are many benefits of frugal living. Frugal living it’s so much more than saving a few dollars and being thrifty. The improvements extend to every aspect of your life, from saving money to managing and creating more time for important matters. Frugal living can enhance your life and legacy.