Frugal Living Reduces Financial Stress
There are many benefits of frugal living. And one of these benefits is frugally reducing your financial stress.
People stress over finances for many reasons. But frugal living will alleviate most of the financial stress in your life.
When a person makes a budget, tracks their money, and saves regularly, you know where their finances are, and you don’t stress because you are ready. You have planned, and you live by your plan.
If a person is debt free, their cost of living is lower than someone in the same pay scale (living a similar life). That isn’t debt free. If you have a lot of bills meaning debt you are concerned about paying your bill.
Many people feel like their lives consist of working and sleeping and nothing else. What if you didn’t need to work all of those hours? you would have time to adventure out and broaden your horizons. You could do other things. You would have a larger purpose.
Another benefit of being frugal is it improves social relationships.
Frugal Living Reduces Financial Stress
Over 70% of Americans have identified money as a major stressor.
Why do so many people stress over money? There are many ways to answer this question, but it boils down to the fact that we need money for a quality life.
As the saying goes, money makes the world go around.
What do people stress about? Here are four areas of finances you have control over.
Frugal living reduces financial stress.
Being Out Of Money: Broke
Most people have experienced being broke at one time or another. We either could have planned it better, or something went wrong. Either way, you’re broke.
Some of the things you can do to avoid being broke are to live on a budget and save money.
Every budget should have saving money built into it.
If you have ever saved up for something that was a sinking fund, you can have sinking funds to save money for upcoming events and things.
The value of sinking funds is in the way you use them. I save for everything. I save for car repairs, vacations, travel, clothes, etc.
This is a good stress reducer because as you save more and more for different categories, you realize you are building a mote around you and your finances.
If something should come up, you have it covered.
Think about car repairs. I have always needed transportation because of my career. I could easily be out of work if I could not get to work.
Having that in the back of my mind was a huge stressor.
When I started saving money for car repairs, that stress went away. I knew I could have my car repaired, replaced, or get a rental car.
Problem solved.
Debt
Another huge stressor is debt. No one ever says I will be buried in debt by age thirty.
Usually, you creep into debt slowly than one day, you wake up and have financial problems.
The solution is simple. Avoid debt.
But now that you are in debt, it’s time to reverse course and climb out. There are many plans on the internet to help you to become debt free.
As you climb out of debt, start saving money as soon as possible to avoid debt in the future.
Need More Money
If you live on a budget, you’ll see where to make cuts and have more money at the end of the month.
But if you need more money, there are many ways to earn extra. You may get a part-time job or find odd jobs like running errands for people or teaching English online.
Look, and you will find opportunities to earn more and save more.
You can improve your living circumstances if you budget and plan. You’ll stress less.
People Stress Over Their Golden Years
If all you have is social security, you should stress. Living on social security alone will be insufficient unless you move to a foreign country like Vietnam, the Philippines, Thailand, etc.
Set money aside for retirement. Depending on where you are in life. You have worked hard all of your life. You deserve a decent pension to enjoy the last years of your life.
If you are young, start investing now. You should consult an expert on the subject of retirement.
Suppose you are close to retirement or have retired. It’s not too late.
- You can downsize to a smaller house or apartment.
- Get a roommate
- Get a part-time job
- Move to a foreign country.
- There’s always a way to improve your life.
Conclusion
Frugal living reduces financial stress because you live below your means, plan, and save money.