Saving Money Puts You In The Power Position 

People don’t just live frugally. It’s a decision they make then they adopt the frugal living lifestyle. If you think about it, if you or anyone is going to accumulate money, it will be the people that live frugally because that’s the definition of frugal living. 

You have a budget and are living by it, planning where to spend your money, and saving money. 

If you spend all your money and never save any, you will never accumulate any; You have to save to keep some cash. Having money is a benefit of frugal living. 

Avoid Lifestyle Inflation 

There’s a lot of talk about lifestyle inflation. All that is, you get a raise, and you spend the raise. You still don’t save anything. At the end of the month, you are broke as usual. 

If you live frugally, you won’t have lifestyle inflation because you’re saving money. The cost of living may increase, but that doesn’t mean you must spend your entire raise on it. 

Maintain A Low Cost Of Living

Your cost of living is lower because you don’t spend all your money. You are dedicated to saving money and living within your means, 

Note: if you aren’t saving money, you aren’t living within your means. 

Saving Money Puts You In The Power Position 

Being in a power position is a fantastic place to be because you make the decisions. You don’t allow someone or something to push you around and make your decisions for you. Being in a power position has three significant benefits.

You Can Afford To Say No

The worst time to buy anything is when you must buy it now. 

Many years ago, I was home on leave while I was still in the army. The day before I was to leave, my car broke down. There wasn’t enough time to have the vehicle repaired. 

I ended up buying a new car. What the dealership gave me as a trade-in was far below market value, and my payments were higher than I wanted. 

If I had adequate savings, I could have hoped on a plane, flown back, and got my car later. Or I could have paid cash for the new car. 

Having adequate savings would have put me in a power position. I could have afforded to say no.

I realize this example is a bit extreme, but we often encounter these kinds of situations in our lifetime. We need to be ready for when they do come. 

You Know What You Need To Sustain Your Lifestyle

Frugal people know what it will take to sustain their lifestyle. You have a budget you live by. You save money every payday. You won’t waste money on frivolous things. 

Others don’t know their cost of living because they don’t track their spending. They don’t know when they are entering a dangerous financial position, like if they need to replace a car or a house appliance. They don’t make these decisions from a place of power. They usually make these decisions from a position of a lack of knowledge. 

You Don’t Have A Mountain Of Debt

Debt is bad for you and your future. You pay interest on the money you borrow, and the debt increases your cost of living. 

You waste money paying interest. And you increase your cost of living. You are making it harder to make ends meet financially. 

You need to become debt-free frugally. There are several tricks the lending companies play on you. One of them is to secure a loan for the amount of your debt and extend the amount of time you have to pay. Bring your payments down. You still spend a fortune in interest, and you’re still indebted,

Conclusion

Saving money is essential to you being able to make wise decisions and make decisions from a power position.