One of the reasons I believe so many people scoff at living frugally is that immediately when they hear the word frugal, they picture someone living in the back of their car, digging in dumpsters for food, and wearing the cheapest clothing. Or, they picture that friend or family member who is always arguing about splitting a check and takes a microscope to receipts to make sure they are not paying dollar more than what they owe. What they are picturing is not a frugal person, but a cheap(skate).
Webster’s 1828 Dictionary defines frugal as, “Economical in the use or appropriation of money, goods or provisions of any kind; saving unnecessary expense, either of money or of any thing else which is to be used or consumed; sparing; not profuse, prodigal or lavish.” Merriam-Webster’s dictionary defines cheapskate, using that dictionary as cheapskate was not a word until the late 1800’s as, “a miserly or stingy person. especially: one who tries to avoid paying a fair share of costs or expenses”
The phrase, “saving unnecessary expense,” is to me what defines living a frugal life the best. Contrary to being a cheapskate, frugality is not about being stingy and trying to avoid paying at all costs, but about being economical in the use of your money and eliminating unnecessary expenses. Frugal people still spend money and lead very good lives. Frugal people still go on vacations, still enjoy drinks with friends, have parties, etc. What they have been able to do though is define in their life what is unnecessary expense. In other words, they have been able to look at their life, figure out what makes them happy, and then eliminate spending on the things that don’t, as well as figuring out the most economical way to achieve those things that bring happiness. Frugal people are also able to be economical in their use of money by implementing tax saving strategies and investing wisely.
Figuring out what makes me happy and then eliminating the rest is what I have done in my own life to be able to save over 50% of what I make. These past few years have included me eating at 3-star Michelin restaurants, a limo wine tour with friends, scuba diving and buying gear, rock climbing and buying gear, a new bicycle, a month long trip to Australia, Netflix (which is split amongst three friends), Amazon Prime, and having a credit card with a $450 annual fee. It has also included almost maxing out my 401k, my math was a bit off, contributing to my traditional IRA, and contributing weekly to a taxable investment account. Does that sound like a boring cheap life? I can promise you it is not. These are the things that currently make me happy. What these years have not included, at least in large amount is, new clothing, hotels, Uber/Lyft, Starbucks, Hulu, buying music, movies in theaters, buying books, shopping in general, etc.
Are the things above bad, not at all, but at this time in my life they do not bring me happiness in relation to their monetary value. Also, before you think I am an uncultured heathen, I do read books often, but use the e-library lending from my home library, listen to a lot of music through Amazon Prime Music, and watch movies through streaming services.
Moral of this post, a frugal life is not about being stingy and avoiding spending at all costs, but about being purposeful in what you are spending money on and making sure it is bringing you value.
