For a lot of people, living frugally in the here and now and saving up a substantial amount, as a result, doesn’t seem especially “sexy.”
Slogans such as YOLO (the infamous “You Only Live Once”) have been pretty popular in recent times, and there’s a certain Instagram celeb-obsessed idea going around that whatever money you have, you more or less need to flaunt it in the here and now in order to have fun, live an exciting life, and not be bored.
And yet, many people find that once they commit to living a somewhat more frugal life, and saving a higher proportion of their income, they enjoy better peace of mind, greater security in life, greater possibilities for the future, and more satisfaction than they would if they had lived more extravagantly in the day-to-day.
So, here are some reasons why it’s worth living more frugally now, in order to save for the future.
Wealth and financial freedom are a matter of money management, rather than income
If you ask the average person what “wealth” means, it’s likely that will you get a lot of replies along the lines of “wealth means making lots of money.” Intuitively, this makes sense. Everyone has probably dreamt of winning the lottery at least at some point in their life, and no one is against the idea of making more money.
But the simple and counterintuitive reality is that “wealth” is a matter of good financial management, rather than having a larger income.
If in doubt, just consider the many celebrities you can think of off the top of your head, who became incredibly wealthy through their careers, only to then blow it all on extravagant living, and end up bankrupt – or close to it.
What’s more, some research indicates that the vast majority of lottery winners end up flat broke within a few years of their big win.
People are drawn to the idea of wealth, because it offers security, increases prospects, and all that other good stuff. But in order to enjoy these benefits, you need to actually be able to amass and hold onto your money, rather than frittering it away carelessly on daily luxuries.
To that end, adopting a more frugal approach to life in the here and now, and saving up more of your income, can get you on the track early. And, if you do win the lottery some day, you are more likely to be able to use that money to transform your life over the long term, not just as a means of partying hard for a few years.
Saving up now allows you to increase your life security and satisfaction through wise investments down the line
Living a more frugal life in order to save, implies that you are saving for a particular purpose. Ideally, a large part of that purpose will be so that you can enjoy greater security and satisfaction down the line, as a result of wise investments.
If, for example, you review a good mortgage payment calculator, save accordingly, and get your own house, you will be much more autonomous, self-sufficient, and secure in your home, than you would be if you had kept renting indefinitely.
It may be silly to deny yourself any pleasures, or luxurious expenses throughout your life, for the sake of potentially being rich by the time you’re 70. But, even on a much shorter time horizon, saving up for worthy goals can significantly improve your life along with various dimensions.
Living more frugally encourages you to appreciate the simple pleasures of life more
it’s not exactly uncommon for people to fall into a cycle of compulsive spending, in order to try and keep their lives interesting, fun, and exciting.
But if you’re always chasing after the next hot appliance, outfit, or gadget, are you not also at risk of taking the things you already do have for granted?
Living a more frugal life encourages you to appreciate the simple pleasures of life more. It encourages a sense of gratitude and appreciation for the things you already own, and it pushes you to seek fulfilment through things such as your professional and personal accomplishments, your relationships with friends and loved ones, and so on.
Of course, that’s not to say that you have to live like a hermit monk and never buy anything new at all. But a lot of people will testify that it’s better to be more mindful about spending, so as to better appreciate what’s right in front of you.
