Is it bad to be Frugal?

To have a good life, to have a happy life, you need a lot of things. You need happiness, friends, family, and also money. As much as we might want to run away from this particular fact, money is necessary to be happy in life. Economic stability makes one’s life more peaceful after all.

Economists will always tell you that treat money as your friend. But, what does that exactly mean? Quite simply, it refers to the fact that you shouldn’t be too extravagant when it comes to spending money, rather you should hold on to it for as long as you can.

If you do that, people might end up calling you frugal, a miser. But have you wondered how wonderful being frugal can make your life? We’ll tell you that there is nothing wrong with being frugal, as long as you know where to channel all the money that you save. We discuss a few benefits of being frugal in life.

Benefits Of Being Cheap

Before we get started, kindly remember that there is nothing wrong with being cheap! Yes, we do admit that the term might sound a bit offensive, but as long as you know where to spend money and where to cut back, there is really no problem in being termed a cheap. In fact, to onlookers, you might be cheap, but in reality, you’re frugal. So, if next time someone calls you cheap, politely make them understand that you’re only frugal. Now that we’ve got the record straight, let’s discuss the benefits of being frugal. Take a look:

#1. Money Matters

Before anyone tries to give you a lesson on your miserly habits, know that the money you have is yours. You can choose to save it or spend it the way you want to. Having said that, it is also important to know that having some money on you is always a great thing. For instance, if you buy a $1000 smartphone, you’ll easily be wasting around $700 as you can get a great phone for under $300. Remember that every single penny that you save today will reap your multifarious benefits in the future.

(Image Courtesy: Yes Bank)

Most millennials today live life the flashy way. That includes getting that new car and posting it on Facebook to buying a new house that is completely out of their budget. But, why are they doing it? Well, it is only a matter of psychology which drives them to look a little cooler in front of their friends. But, at the end of the day, the truth is, the money you have in hand matters. If you have it, well and good and if you don’t; well, good luck selling that car and getting pennies for it.

#2. Wants vs Needs

This is a very common issue that comes up whenever you read an article that takes about the benefits of saving money. When you intentionally try to cut back on your expenditures, you become more responsible in life. And that really reflects in the decisions that you make in life. To begin with, you start understanding the difference between an asset and a liability. Similarly, you understand the difference between a ‘want’ and a ‘need.’

You start to understand what type of purchases you absolutely need to make. There is a fine line between a want and a need and you should be able to distinguish between the two. The economy today is volatile, and you don’t know how the market will behave five years from now. But, if you’re frugal and have saved up a substantial amount of money by ignoring your ‘wants,’ your future would almost be secured.

 #3. Less Interest

When you’re frugal, you’re obviously saving up a lot of money. That means that at the end of the day, you have more money left in your wallet than most people. Once you cut back on your expenditure, you can actually start saving for your future. Now, let’s assume that you decide to buy a house for yourself. If you have saved enough money that you don’t need to pay the money for the house in installments, imagine all the cash that you’d be saving which you otherwise had to pay as interest!

(Image Courtesy: Peerform)

#4. Eat For Cheap

Most people feel that because you’re frugal, you rarely go out to fancy restaurants to have a good time and feed your souls. However, we wish we could tell how wrong their assumptions are. Being frugal teaches you to be resourceful and allows you to make the best out of what you have. For instance, most restaurants have happy hours on weekdays, and that is when you can have a great meal without having to pay the full price. If you eat the same thing on the weekend, you’ll end up paying more. Can you imagine the money you can save by being a little cautious without having to abstain from going to a good place?

#5. Escape The Rat Race

Most people feel discontent with the type of job they do and aspire to have some other job. Not to forget that being in a low-paying job can trap you in the vicious trap of debt. And if you’re unable to move out of the job you hate, it is only natural that you’ll end up being caught deep in the rat race. But, it is possible to escape the rat race quickly only being a bit frugal in your approach. Remember the money that you save while doing your job will help you in leaving it. It will also financially equip you to take up the job that you’ve always wanted to do.

(Image Courtesy: Tub of Cash)

In fact, once you have saved enough money, you don’t even need to work for someone. You can start your business or pursue any other hobby like writing and traveling and make money out of it.

#6. Being Frugal Can Liberate You

Money gives you a sense of freedom. You know that you can take on things when you’re financially well-equipped. People might wonder how cutting back on expenses can make you feel liberated when you have to worry about saving money all the time. To answer them, we’ll say that saving money is not a short process. In fact, it should never end. Yes, initially, you might feel that your hands are tied to your back while making purchases. But, over the years, when you have a handsome bank balance, you can start being comparatively generous with your spending habits.

#7. Creativity

So what if it is your birthday or you have to throw a housewarming party? If you don’t want to spend a lot of cash on such things, you can absolutely do that. Like we discussed above, being frugal makes you resourceful. That, in turn, boosts your creativity exponentially. By being frugal, you tend to find a way around things. For instance, if you’re hosting a housewarming party, you can ask your guests to get their own drinks or snacks. On other occasions too, you can show your creativity to save a ton of money.

(Image Courtesy: Knowledge)

So, there you have it. Clearly, there is nothing wrong with being frugal. Are you frugal? Let us know in the comments below.

(Featured Image Courtesy: Rostov)