What is frugal living?  When the word frugal is mentioned, people think of being cheap.  They believe frugal people penny-pinch to the extreme, continually sacrifice, and give up living life and enjoying things.  But what it really means is that living is much more equalized and much more powerful.

It’s all about using one’s money purposefully to support one’s needs, goals, and values.  It’s really not about spending as little as possible.  It’s about using your money wisely and decisively.  When making financial decisions, you need to ask yourself one question.  Am I getting value in my life if I spend my money on this thing.

Frugal people try to aim towards priorities, not impulses.  Their money goes to housing, health, relationships, and valued experiences.  They reduce spending on things that don’t have lasting fulfilment.  In other words, they don’t eat out much, they plan for major expenditures, and they buy quality items that will last them longer than buying cheap items that won’t last as long.

People who are frugal try to decrease waste, both mentally and financially.  They use what they have instead of always buying new.  They resist increasing their lifestyle when they get a raise.  They’re not ones to keep up with the Joneses.  They live a lifestyle that lives within their means and allows them to fund their long-term goals.

So why are people frugal?  It gives them peace of mind.  There are no money stressors if you’re living within or under your means.    You can save regularly, get rid of your debt, and plan for your future.  This method allows people to gain confidence and control of their funds.

Moral of the story:

Think about frugal living as freedom.  When you are in control of your money, it is just a tool to maintain your lifestyle.  It’s not the cause of anxiety.