Frugality – The Art of frugal living

Frugality is the effective and restricted utilization of resources like cash and time to especially when buying goods and services. It is about deliberately avoiding wasteful expenditure, practicing conscious consumption and being satisfied with what what you own. Being frugal is about figuring out what you value and subsequently stopping to spend money on the things you don’t.

Frugal living will enable you to manage your finances well and make good use of the money that you earn. You’ll make good purchases which offer quality and maximum value for the the money spent on them.

To build your wealth out of a small capital, you’ll succeed when you practice these four fiscal strategies: live well below your means (live frugally), save money consistently, invest money prudently, and avoid unnecessary borrowing.

By contrast, people who are locked in a cycle of debt consist of those borrow and spend more than they should in order to support lifestyle that they cannot maintain. Living prudently is much more satisfying than worrying all the time about money and incurring unnecessary debts.

What is meant by a frugal person?

A frugal person is an individual that is generally wise with their money. Such people are prudent or thrifty with their money. They only spend their money on necessities that will benefit them. Also, they avoid spending much on things they don’t consider to be important.

Frugal people appreciate the importance of their time, health and their overall wellbeing than the need to acquire material wealth. They steadily build savings for their future.

What’s the Difference Between Frugality and Cheap? 

A frugal person understands how to spend his/her money and time prudently and how to maximize the use of resources. They value quality, are willing to wait for better price and are hard working on how to make the best out of what is available. This person maximizes the value they get from their purchases.

A cheap person is more of a price-conscious person. They opt for the lowest possible price regardless of its quality and value. All they want is for things to be sorted out as quickly as possible. By buying cheap, they get nothing in return but a low-quality product.

Why would a person choose to live a frugal life?

1. To be a better steward of your money
   You will have to carefully monitor your income, expenditure, and the amount of money necessary for your existence. You will learn to manage your finances by developing habits such as creating a budget and tracking your spending. Knowing this will help you control and be comfortable with your financial situation.
2. You want a simpler life.
   By living a frugal life, buy and use quality items that will last. You will have zero clutter in your life because you will own far fewer things. As a result, you will live a more simple life that you can appreciate fully.
3. You want to appreciate everything and anything around you.
   You get to enjoy each meal you eat and each item you buy, and you get to appreciate what you have and the things you were spending your money on. 
4. To have no debt and be financially stable. 
   When you are comfortable with your financial situation, then there will be no need to go for debts. You will save for emergencies, for retirement, for your children’s education, or for other investment needs. This type of financial security comes in handy when times are hard. Therefore, frugality provides a systematic method of proactively building your wealth over time.

Benefits of Frugality

1. The stress that comes with money worries will be reduced since you can take control of your finances, for example, by minimizing and eliminating debt.
2. Living through the frugality saves your money. It also makes you wise to avoid things that con you or make you spend unnecessarily such as scams, impulse buying, costly loans, or many other things that you may see in advertisements.
3. You’ll be able to rise above the societal expectations and do what is right and acceptable to you. 
4. You can find many things that you can do for free or for a reasonable price that include free shows in your area, hiking, or creating stuff on your own.
5. You will learn about the low-cost or free ways to be active like hiking, cycling, or enrolling in community activities that involve exercising.
6. Using natural and environmental friendly products means that you avoid all those chemicals that are usually used in commercial products.
7. You’ll have healthier eating habits because you will be cooking at home instead of eating out. Homemade meals usually have fewer unhealthy additives.

How do you know that you are a frugal person?

You:

• budget consistently and adhere to it meticulously. You maintain a good budget that shows the amount of money you spend each day and how much you will spend to achieve your long-terms goals.
• put a lot of emphasis on needs as opposed to wants. You will only buy things when it is suitable, for instance, if there are some special offers or discounts.
• don’t buy on impulse.
• actively save 16% or more of your monthly income into a savings account.
• are more active in minimizing cost through economizing and doing it on your own. From fixing things instead of buying new ones, taking care of the yard, or even changing a car tire, you are a hands-on person. You make the best of the resources available to you.
• focus more on building savings and investing.
• have low consumer debt. Also, you ensure that you pay off your loan balances in full so that you will not incur interest charges.
• make conscious choices of adopting low-cost and environmentally friendly measures such as cycling to work instead of using your car or opting for home cooked meals as opposed to eating out.
• are more interested in quality, reliability and those that are going to last than in fashionable, temporary styles.
• hold onto these material assets and goods as long as absolutely possible and get maximum use out of them. Some assets can be passed down to your children.

Conclusion

Frugal living is a conscious and a principled method of reducing expenses and only spending on products or services that are really necessary. Frugality is a way of avoiding wastage by choosing something of value and quality. Deciding to be thrifty leads to responsible spending, minimalism, acknowledging the things and people in one’s life, and most importantly, fiscal stability.

If you follow some relatively simple principles and rules, including the practice of regular budgeting, the identification of needs versus wants, and making conscious decisions as to how and where to spend, you’ll have a less stressful, better quality and sustainability of life.