Firevalt Blog - Personal finance and entrepreneurship

Frugality and a Better Life

May 17th, 2006

A comment on our last post, Winning on the margins, brought up a very interesting topic.

“You still have to balance [frugality] with living a nice life though. Winning for the sake of winning, or being frugal for the sake of being frugal will probably not lead to a better life. Living a life where you express yourself and achieve your goals through reaching your highest potential probably will, but it is not necessarily the same thing.”

So, what’s the point of being frugal if it doesn’t lead to a better life? I’d argue that frugality, in its correct form, will undoubtedly lead to a better life. The purpose of frugality is to manage your money in a way the enables you to create wealth. Overtime, you can begin relying more on your wealth for income instead of a job. Being frugal for that purpose creates self-control and freedom from financial stress - both of which lead to a better, happier life. Frugality does NOT mean being a selfish miser with your money who hordes it just for the sake of not spending it.

There is another statement in that comment that brings up another great point:

“You still have to balance [frugality] with living a nice life…”

I really agree with that. There are many things in life that may not bear financial fruits, but are definitely worth spending money on. You could learn a new language; learn to play a sport, or a musical instrument. You could move to a struggling country for a while and volunteer your time and talents to help less privileged people. Things that add to your personal development and build character are most likely worth the expense. I would say be frugal when it comes to consumer goods. The value they add to our lives is debatable compared to the financial burdens they can create.

Entry Filed under: Debt Reduction, Firevalt, Frugality, Investing, Saving