The Art of Frugality

After saving money, most people do not know how to properly preserve that money.  In such a materialistic world, any excess cash that you have is drawn to buy things you really do not need.  The advertising in this nation and world is very effective at tempting you to buy the newest IPhone, the best new car, or even smaller things like new shoes.  If you are not careful, the money that you have worked so hard to save will be gone in an instant and you will likely be left feeling disappointed and empty.  And this leads me to the idea of frugality and how it can be used to change your spending habits and your life.

In one of the previous articles, “Pinching Pennies”, I emphasized the importance of saving money in any way possible, even if that means collecting change.  However, that lesson is irrelevant if you cannot actually hold on to that money once you have it.  When I was a kid, I worked diligently to save coins, dollars, and basically anything I could get my hands on.  I would save for months, and then blow it on some new video game or toy.  I got the money collection piece right, but I was unable to hold on to my wealth.  The end result was the same as not having saved up money in the first place.  Sure I had the newest thing that America had to offer, but this excitement faded rapidly as my items were soon outdated and my money was long gone.  This is the same issue that millions of Americans go through, and it is extremely destructive.

The only solution to this issue is frugality: the idea of being economical with money and resources.  This means not buying stuff that you do not really need, and having a different mentality about your wealth.  Just because you have the money to buy something does not mean that you should.  Instead, you can use this savings to invest (in business, stocks, or real estate) and make your money work for you.  Living a frugal life will lead you to true financial freedom, and it is an extremely important transformation that you need to take to get there.