MoneyTheory

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Sometimes it’s easy to get the notion that being frugal gets labeled as being “cheap,” “boring,” or just plain “uncool.”  Other times, some may think that frugal people are not living life to the fullest, and are constricting themselves too much by pinching every possible penny they can.  I am here to squash those notions.

Of course there are extremes with regards to anything, but the general sense of being frugal and cost-conscious doesn’t define a person.  And I’m not a big fan of labels anyways.  Just because a person uses generic products, for example, certainly doesn’t mean that he or she doesn’t have good taste in food.  Sometimes, it may just be an example of them being open-minded.

To start, I would say that, myself included, many frugal people have different priorities about what to do with their money. It could be summed up as “save now to enjoy later.”  Now this has nothing to do with leading a boring life now to enjoy a more monetarily fruitful one later.  I would say that instead, it more has to do with the importance that material possessions play in one’s life.

For me, when I do splurge on something, it more often involves spending money on an experience, rather than something immediately tangible, like a new flat-screen TV or something.  I find the enjoyment of the memories that are created are more valuable to me than the latest gadget.  For example, my fiancé and I love to travel, and have taken some great trips to several international locations.  These experiences allowed for some great adventures, and we were able to experience new places, cultures, cuisine, and more.  And most of all, the sensible frugality that allowed us to afford such wonderful trips paid off, and permitted us to enjoy the fruits of our efforts.

The frugal lifestyle is usually quite an active one. Think penny-pinchers spend all day at home tending to their garden and squeezing every last drop out of the ketchup bottle?  Think again!  At least in my case, I like to get out and explore.  I love really doing anything outdoors whenever I get the chance.  Exploring new places is always enjoyable.  I really enjoy the arts, going to a basketball game, going out to eat, comedy shows, concerts, etc.  Granted, these events are not an every-weekend thing, but they are enjoyed at regular intervals.  The cool thing is that I can use my sense of being cost-conscious, and enjoy these events on regular occurrences, because there are many ways to do so on the cheap!  I could care less if I sit in “nosebleed” seats at a basketball game or concert.  Again, it’s all about the experience!  I can still see and enjoy the game from the top, and it only costs $10!  Concert tickets can be as low as $25 for general admission seating, and a Diamondbacks baseball game can be seen for $5!  And with the regular amount of money going into savings from the frugal lifestyle, if my favorite band comes into town or the Phoenix Suns play one of my favorite match-ups, then there is room to splurge on better seats.

There is less stress. By living within my means, I don’t have to live paycheck to paycheck, and as a result, I don’t have to worry about how to pay the loan on the $2,000 TV or the lease on the BMW if something were to happen to my income.

Frugality means being content with what you have. In many ways, I think it means being more resistant to the consumer-oriented mindset.  There’s always something new that comes on the market that can make you feel less content with what you have, because something “better” has come out.  So some may sacrifice some dollars to stay in the game, and discard their old, but very functional items to “upgrade.”  I have a 36-inch conventional tube TV that I paid very little for when they were being phased out of stores.  It works great, and the picture is very nice.  Granted, it’s not in HD and isn’t LCD or plasma or whatever the new thing is, but I can watch DVDs with about as clear picture as necessary, so why would I want to get rid of that and unnecessarily spend $1,500 on something that serves the same general purpose, but may have a crisper picture?

The things I have fit my needs.  If I was living in poverty with very few possessions, and all of a sudden started making a great income that allowed me to purchase new items I’ve never had before, then I would be interested in some “upgrading!”  But I feel I have everything I need for now, and I make the most of them.  And there’s certainly no feeling of deprivation or being substandard because my 12” Pioneer stereo speakers were purchased in 1993!  They still sound as good as they did 16 years ago and shake the walls when I want them to!  Yeah, I could get “better” ones if I wanted to, but why?

Most importantly, I think a frugal attitude is one that allows you to focus on what’s really important in life. Instead of succumbing to the modern-day, disposable, consumption-based society characteristic of most industrialized countries, you can free up your dollars to be put toward things that may allow you to enjoy a life that aligns more with your dreams, aspirations, and goals.  Furthermore, it can help ensure the sustainability of your quality of life, by allowing for a sound financial future.

One of my fiancé and my goals is to achieve financial independence, and live on our own terms as early as possible.  In other words, this would be creating a sustainable and successful business which allows for us to live wherever we want, and to not have our lives be dictated by an employer, corporation, and such.  Being frugal allows us to develop the tools needed to achieve these goals, and can help accelerate us toward the goal of retiring as early as possible, and to be able to live comfortably for the rest of our lives without having to worry about money.

Would I set those goals back in order to have the latest and greatest gadgets, wear the most expensive clothes to make a fashion statement, or be tied to a $650/month auto lease to drive only in “luxury?”  I think not.