If you are struggling while trying to meet your financial goals and feel stuck, getting familiar with Frugal Living might be your key to success. But is it worth it? I hear that a lot and took a moment to do a deep dive to answer the ever sought-after question, is frugal living worth it?
The short answer, YES, and I will dive into that in a second.
Keep reading for my 6 core reasons why frugal living IS worth it!
For more on frugal living, be sure to check out my blog posts on Books About Frugal Living and Frugal Dinner Ideas.
Frugal living is something near and dear to my heart. It is what finally helped me build up my first emergency fund and if you need that same help, check out the freebie below!
Build Your Emergency Fund
Financial anxiety is one of the worst kinds, right? It used to keep me up at night for years. I was desperate to find a fix but nothing was working until it did. Luckily for you, I kept a note of everything I did along the way and now I am here and ready to teach you how to build your emergency fund (amongst many other things). For everything from the basics of understanding your finances, to creating your monthly budget, I have covered it all. Click the button below to learn more!
Other posts you might like…
- 37 Cheap Things to Do on the Weekend with Family
- 33 Budget-Friendly Birthday Activities for Kids
- 75 Saving Money Quotes to Inspire You to Save Up
- 5 Creative and Modern Ways of Saving Money Right Now
- Is Frugal Living Worth It? Answering the Age-Old Question
Why is Frugal Living Worth It?
Frugal living is worth it for a variety of reasons. I have tried and tested out the lifestyle for a span of over 10 years at this point and as someone who has tried everything, I can assure you, it is THE way to finally figure out your finances for good.
Here are my core reasons why frugal living is worth it:
Financial Independence
Frugal living paves the way for financial independence (when you live off of your investments alone — making work income optional). The price of your Financial Independence is a function of your annual expenses (how to calculate your Financial Freedom Number). The lower your annual expenses, the sooner you can achieve financial independence, allowing your total time freedom.
Mindful Spending
Frugality isn’t just about cutting expenses; it’s about aligning our spending with our values through practices like value-based budgeting. This approach involves identifying our core values and priorities, and then creating our budget accordingly by consciously directing our money toward the things that truly matter to us—whether it’s experiences, education, health, or supporting causes—we ensure that every dollar spent contributes to our overall well-being and fulfillment. Value-based budgeting empowers us to make informed financial decisions that reflect our aspirations and aspirations, ultimately leading to a more meaningful and purposeful life. My Money Fit Tracker includes a budget (with suggested percentages), but also a list of values to help you thoughtfully set your top-3 spending priorities.
Reduced Stress
Living within our means reduces financial stress, promoting peace of mind and overall well-being. The great part about creating your Million Dollar Plan (FREE) is it allows you to easily automate your long-term investing, increasing your financial confidence and reducing stress.
Environmental Impact
Frugal living often involves reducing waste and consumption, benefiting the environment and future generations. When I was a young mom, I shopped at places like Goodwill and Facebook Marketplace to find second-hand items. This not only saved me a lot of money, it kept these items out of landfills. I love teaching my kids the importance of reducing, reusing, and recycling.
Building Resilience and Preparedness
Frugal habits help build resilience, preparing us to navigate economic uncertainties and unexpected expenses. Living frugally allowed us to build a 3-6 month emergency fund, which has saved us from some unfortunate financial situations (more than once!).
Fostering Contentment and Creativity
Frugal living encourages finding joy in non-materialistic aspects of life, fostering a deeper sense of contentment and fulfillment. Sometimes we fall into expensive habits (e.g. going out to eat with friends all the time). When we consciously think about what need we are trying to fulfill (social connection) and infuse the creativity of frugal living, we can come up with even better solutions. I found myself in this exact situation, so I created two monthly social groups: a book club and a hiking group. I was able to get that social connection, saved a lot, and (bonus) improved my health as well.