There was once a time in my life when I had money but I felt deprived of the things I wanted. I grew up in a household where saving was a must and even when I became an adult, it felt weird to enjoy.
Even though I was spending on myself, I was overly focused on saving as much as I could. In my bid to cut costs and save money, I crossed the line from being prudent to being overly restrictive, leading to a lifestyle that felt more like suffering than saving sensibly. Yes, being frugal is good and should be emulated but sometimes it can move from frugality into stinginess.
There are subtle signs you might be crossing the line between saving and frugality. The first is constantly feeling deprived. If you feel miserable about your financial choices, it might be time to check your spending habits.
Another is avoiding necessary expenses, skipping medical check-ups or buying the cheapest food options without considering nutritional value can harm your health.
Some people even go to the extent of neglecting important (family and friend) relationships because of money. If saving money means isolating yourself from friends and family, consider whether the savings are worth the cost to your social life.
Frugality is often misunderstood. It’s not just about cutting costs or living a life devoid of enjoyment. Instead, frugality is about making intentional choices that prioritize value over cost.
Frugality is:
i. spending mindfully; that is understanding what you truly need versus what you want.
ii. prioritizing invaluable experiences; that is investing in experiences that bring joy rather than accumulating material possessions.
iii. recognising value; that is finding high-quality items at reasonable prices rather than always opting for the cheapest option.
The best place to be is to find balance and maintain a healthy relationship with money– being able to save and invest smartly while still enjoying life.
So how do you do this?
- Set clear financial goals: Define what you’re saving for be it a vacation, a home, or retirement. This gives purpose to your frugality.
- Create a fun budget: Separate a portion of your budget for entertainment and leisure activities, ensuring you enjoy life while saving.
- Invest in quality: Sometimes spending a little more on high-quality items can save you money in the long run by reducing the need for replacements.
We hope you learned one or two things on this episode of #ESolutionsDeyForYou. Have a productive week ahead!
