I Don’t Want To Be Part of the Frugality Crowd
Let’s face it, it’s a cult
There’s something wrong with personal finance literature on (and off) the internet. Like so much else in what amounts to popular culture, writers present solutions to problems without an appreciation for individual context.
This happens frequently in the discussion around frugality. There’s a difference between what we have come to know in personal finance: frugality and a low cost of living. If you don’t consider the distinction, you do a disservice to yourself and anybody you might be trying to help.
And you’re certainly not helping anybody at all by projecting and prescribing dogma. What works for you or me doesn’t necessarily work for others. You’re better off developing a framework within which we can all operate independently, supporting one another rather than expecting loyalty to the cause.
Frugality has become a cult. A storm the United States Capitol type of cult. Otherwise decent people caught up in a lie they half believe (thanks for the line, Tom Petty). Because let’s face it, most people can’t adhere to the extreme flavor of frugality we read about on Medium and elsewhere.
And they shouldn’t want or need to. A better alternative exists.
Thoughtfully conceived and structured, a low cost of living blends the best aspects of frugality with the goal of an all-around fun, fulfilling, and cash secure life.
An on the ground example —
People who preach extreme frugality tend to rail against the daily practice many of us have of spending, say, $5 a day on a latte at your local coffee shop. They run the numbers and show that if you save that $5 a day for… you know the rest of the story. Not buying coffee every day will make you a millionaire! If only it were that easy.
This is a prime example of so much that’s wrong with frugality and much of the larger personal finance discussion. Black and white thinking that neglects individual nuance and the psycho-emotional components of managing your money.
Back in the day, I had a toxic relationship with work. I’d be up way too early and work way too late. I viewed grabbing a coffee and taking a morning walk as being lazy. Or just not ambitious enough. My thought process—if I could be working, I should be working. Because if I’m not working, I’m not making money.
Typical type A bull shit.
I slowly discovered that the $5 investment in a morning coffee and subsequent morning walk — with coffee in hand — makes me more productive. I get more work done in an afternoon (like 3 to 5 hours) than I did when I was pulling 8-to-12 hour days writing and editing. When I get more work done, I tend to make more money. There’s no correlation between how much time I spend working and how much money I make. But if there is, it’s a negative one.
Because all work, all the time induces stress. At least in me. When I’m stressed, ideas don’t flow quite as well as they do when I’m relatively carefree.
It counters intuition, right?
Defy a prime tenet of frugality by “wasting” five bucks a day on coffee, earn more money. Function with that money amid an insanely low cost of living, and you have the recipe for reasonable expenses and, most importantly, cash security.
Cash security, not frugality, should be the goal. Frugality doesn’t necessarily deliver cash security, but a low cost of living does. It’s about building your life with saving and investing as a cornerstone of the process. It’s not about depriving yourself of the joy spending — modestly and within a thoughtful framework — absolutely can produce.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions
