The Muted Joy of Frugality

Conscious trade-offs determine how I spend my money, time and resources

I want to be very clear. I love money. I love making it, I love saving it and I love investing it. But I hesitate to spend it, especially without a clear purpose.

The irony of money is that the most valuable thing you gain from it isn’t something you can buy. Just having it gives you a certain level of freedom.

There is contentment to be found in that.

If you ask me how much money I want and need, I can only respond with “more” and “enough”. Currently, I have accumulated enough resources to sustain myself for many years.

But I want to have kids.

Having more money means having more options. It means having the ability to live a better life, one in which money isn’t the main driver of decisions.

The Frugal Life

I have always been pretty frugal. I am very mindful of how I spend my money. Frugality is practically a family trait, it’s in my DNA.

At times of crisis, you feel a bit better when you have savings. But don’t get me wrong, you don’t feel amazing.

Being frugal isn’t about delayed gratification.

In many ways, being frugal is about finding joy in the little things. But mostly, it’s about avoiding a financial catastrophe that can ruin your life.

It’s a form of insurance.

There is a difference between being frugal by choice and circumstance.

If you are fortunate enough to be frugal by choice, you will be able to live more or less the same lifestyle regardless of the market environment.

It might sound super boring and that’s OK. There’s nothing in particular to celebrate but at the same time, it can still be worth it.

As modest as my lifestyle is, and as undesirable as it might seem, I can walk away from any job. I can do nothing for years at a time because I have lowered my cost of living to the essentials.

I get to take big risks with my career purely because I have savings. That’s my leverage.

As a result, I’m not afraid to fail because every risk I take is calculated. I don’t have to compromise what I want to do for money reasons. That kind of freedom is worth more to me than any materialistic good or experience.

It’s fine if you don’t agree. I can only promise not to judge you if you don’t judge me.

The Disassociation of Happiness and Money

Money can buy a lot of things, including things that make you happy. It can also buy things that prevent unhappiness.

But the relationship between happiness and money isn’t exclusive.

You can be happy without being rich. And, you can be rich without being happy.

The sooner you realise this, the better.

The Frugal Social Life

You’ve heard of people keeping up with the Joneses. But you know what? I’m not doing it!

It’s not a game worth playing because nobody wins, not even the Joneses.

If you surround yourself with people that constantly judge you by how you decide to live your life, then maybe they aren’t the friends you want to have.

I understand that extreme frugality can shut a lot of doors. It can be very anti-social if you don’t want to spend any money at all. But you don’t have to be like that. You can just be more mindful of how you spend your money and live within your means.

You should find friends that feel the same way so that your view of money isn’t contentious. It’s very possible to enjoy quality time with others and avoid unnecessary expenses at the same time.

The Frugal Life Requires Meaning

Frugality without purpose is not ideal. Typically, it is a better default than constantly overspending.

However, being tight-fisted when you have more than enough to spend on things you enjoy is a serious misallocation of resources.

There should be a reason why you decide to live frugally but that is something you ought to define for yourself.

For me, I live frugally because I want to have kids and I want to do things on my own terms. I want to keep the freedom of not working for someone else.

A Life of Conscious Trade-Offs

Life is a balancing act.

You need to do what you feel is important but also avoid getting caught up in other people’s value systems.

No matter how much money you make, there will always be opportunities to spend more than you earn.

You can’t eliminate trade-offs in your life. You can only seek to manage them better.

Nothing I spend my money on is done without question. I think in terms of time and opportunity costs. To some people, it is utterly exhausting.

If I overspend on one thing, I know it comes at a cost to something else.

Conscious trade-offs mean I am always looking for “value” and I focus on what matters to me. I’m always looking for bargains but not at the expense of wasting time.

Not only am I frugal with money but I am also frugal with time.

To the outsider, a frugal person looks like they are living a restricted life.

It’s true. Their life is financially restricted.

Frugal people don’t spend as freely as everyone else but that is the precise reason they are able to live more freely.

Key Takeaways

• Frugality is about finding joy in the little things but mostly, it’s the avoidance of a financial catastrophe.
• Happiness and Money are not mutually exclusive. You can be happy without being rich. And, you can be rich without being happy.
• You can spend quality time with others without spending money.
• It helps to surround yourself with friends that have similar views on money.
• A life of frugality requires meaning and purpose.
• Trade-offs are unavoidable. You can only learn to manage them better.

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