Today’s post touches on the concept of frugality and how it helps us invest money. Without frugality, much of our earnings would be akin to adding water to a bucket of holes. With frugality, we plug those holes and gain the capacity to expand our frontier. This is why the Distilled Dollar household believes that frugality is not a sacrifice but rather security.
The common misconception is that frugality is a form of austerity in which we deprive ourselves of the things that make us happy. The truth is, frugal people are happy too.
We derive happiness from relationships, connections, purpose, and not necessarily from possessions. That might just be us. We may enjoy the act of buying something, but we value investing that money.
Frugality is not a sacrifice. Frugality is the earning of our resources.
If saving is earning then frugality is the first step to investing our savings.
Now that we got the definitions out of the way, we can see frugality is a means to optimize our money. We may also want to say time should be optimized.
Frugality is not a sacrifice. Frugality is a means to gain more Freedom.
If we take a moment to imagine life in reverse what might we see? If someone started living a frugal life today, saving 50% of their income, then they would be on pace to be financially independent in 17 years.
From this perspective, a 25 year old could avoid losing 23 years to an unsatisfactory career.
Frugality is not a sacrifice. Frugality is a fast track to becoming a millionaire.
More cash each month means more investments, which produce earnings, which further produce more earnings. But, let’s not forget that financial income is one of many currencies we have in our lives. Furthermore, we forget how far $10 can go today.
For $10 I can travel two hundred miles via bus or watch a month’s worth of high quality entertainment. For that same price I can even buy a book on Amazon and have it delivered to my doorstep! Truly, these are luxuries in the backdrop of civilization.
As part of my previous 90 Day Frugality Challenge where I read more covering Stoicism, I felt this quote from the wealthy Roman philosopher Seneca summed it up well, “It is not the man who has too little who is poor, but the one who hankers after more.”
Do you link frugality with sacrifice?