Frugal Living: Everyone does it WRONG

EVERYONE should partake in frugal living for a little bit of their life.

I bet you were expecting an article about how to live cheap without feeling like a cheapo. Nope. Embrace it! Just for a while and reap the amazing benefits of overly aggressive saving.

Sure, sure, no one wants to be known as a Scrooge but frugal living like a Scrooge – just for a bit – can be a huge game-changer when it comes to super finances.

For how long? That’s the best part. You don’t have to do it for the rest of your life. After you pare back for a while, adding those little luxuries back into your life will make you feel like royalty. AND you’ll actually appreciate them this time. 

My magic mark is that you should be a miser like Scrooge until you have some real money. I live in an expensive city so to me that means until you have $100K in the bank, and your income is over $60K. Until then double down on frugal living. Live super frugal. 

Today we’ll learn:

3 Reasons why you need to be frugal living

1 – Frugal living teaches you what you do and don’t value. 

This is a big one for me. The biggest reason.

Frugal living is hard, but that’s kind of the point. It’s not about finding coupons and deals. If you don’t live very cheaply at some point in your life, how can you learn what you need and don’t need in your life? 

Frugal living let’s you understand what you need most. Even better, you’ll be surprised by how many things you can do without.


2 – Saving is the #1 determining factor for your future

Your financial future is all about your income vs. spending ratio! While you might have one or two vices you just can’t seem to get rid of, that’s fine as long as you remove the extra financial baggage you are carrying. 

Once you make the hard choice of frugal living like a scrooge, you will know exactly where you can save money. You will also learn how little you can spend and live, which reduces the amount of money you need to save up before you can quit your job.

You don’t like saving and think you will be the lucky one who just happens to make a fortune in the stock market? Think again. 

Almost no one gets rich just playing the stock market. They get rich saving then grow it to a huge value by investing it.

But wait, you’re a stock market wizard who can find the perfect investment no one else can see? Yeah right, even fancy advisors can’t do that.

Saving is the only sure way to succeed if you are serious about your finances.

Preparing for retirement isn’t really about investing huge sums, or even making a fortune. Stop tricking yourself into thinking you are going to be the exception to the rule by investing better than anyone ever has before. 

Follow the sure path to a successful early retirement by saving aggressively now and investing wisely. Extreme saving will outpace any gains you could potentially make in the stock market. 

3 – Force frugal living until you have the ultra-lucrative investments!

Until you have invested in all the ultra-lucrative things, you need to hold onto your money like Frodo held onto that ring.

But it is worth letting it go for the ultra-lucrative investments of the world. See below.

Read this:
3 methods to save up over $1,000 with 1 hr of effort
3 methods to make up to $10,000/hr!

In fact, there might be some investments you can make right now close to home. 

  • You should invest in yourself! If you can learn something to enable you to boost your income by a couple hundred dollars a month, that would still translate into thousands of dollars extra every year.
  • Or why not invest in your house itself? If you have a basement to spare, you could be making an extra thousand dollars a month after spending only a minimal amount on basic renovations. Plus, if done right, property management is EASY!
  • Even better, pay off credit card debt that has been accumulating. The high fees associated with it are quite big but more importantly, it’s going to hurt your credit which will hamstring all your future abilities to make money.

How can I STOP frugal living the Right Way!

Once you have:

  1. Covered those amazing investments
  2. Pared-back a painful amount to learn what you care about
  3. Skyrocketed your savings rate above 50% of your income

Only then, can you start spending more. Your life should be in a much better place than it is right now. 

If you are living frugal the right way, you probably think you have to go without a lot of things. The reality is that most people associate saving with living less joyfully. 

This doesn’t have to be the case though. 

You can start frugal living by identifying aspects of your life you don’t really need. Like mentioned before, find what you miss by cutting back until it’s too painful. 

Add back ONLY that which you miss.

If you can’t stand to live without something, then keep it. In fact, spend more on that thing! Refocusing your spending will give you more satisfaction in life.

You might just start liking second-hand fur coats!

Purposefully spending more to stop frugal living

It’s a funny point in your life, but think to yourself that you are cutting back elsewhere to splurge on this thing you love. I hire tutors and maids. I love it, because I hate learning slowly, and I hate cleaning. 

While you might need those karate lessons to stay fit, is that ice cream sundae afterwards at the same level of enjoyment? It’s tough choices like these that will not only help you save for retirement faster, but help you spend more on what you love.

Don’t believe me? By aggressively saving now and eliminating those frivolous expenses you know you will be able to easily do without, you can just quit your job. That will bring some happiness for sure!

It is hard to spend more once you have really hammered that stingy lifestyle into yourself.

If you need some help easing yourself back into spending while still keeping most of your money, here are the 4 big ones.

4 Tips to stop frugal living…responsibly


1 – Eating out:

I don’t recommend eating out as a whole, not just as part of frugal living. But you can still have a lot of fun with it by saying no most of the time and making a big deal when you say yes

Instead of wasting money on fast food, you could be saving money for that dream vacation AND having one stellar meal out every month.

2 – Don’t budget hard…but have goals. 

The sweet, sweet taste of freedom will keep you driving towards the achievement of your savings goals.

Just remember that. With every dollar you save enthusiastically now, you are that much closer to living the dream life you have always wanted to lead. If something is too painful for you, it will feel worth it to delay your dream just a little bit.

3 – Vacations

They are fun and can work with frugal living by taking frugal vacations!

Keep taking vacations! But you can travel to places that are inherently low cost. (Thailand anyone?) Then, you can happily vacation frequently without worrying at all about what you spend.

4 – Set a value for your time

Your time is worth something. Actually your time is incredibly valuable.

It’s the whole reason I worked at dropping my job. I decided on a pay rate that I think my time is worth and anything that didn’t fit was cut, work included (kind of, long story short my job became too amazing to fully quit).

If I am doing something I don’t like and I think I can pay someone else less than my magic pay rate, I do it.

Related reading: 
Value your time and stop reading the news!

Truth be told, I’ve walked down this path really far. If I can pay someone under $50/hr to do something I don’t like to do I’m doing it and I will ALWAYS offload it.

I was stingy once and now I know what I don’t enjoy. Now I REALLY know what I hate and what I like.

And if I hate something I will definitely pay to not have to do it again.

Some examples:

  • I won’t do much searching on amazon to find the best price.
  • Drive to a faraway store/Craigslist ad to save money? Nope. I’ll pay for delivery thank you very much.
  • I pay $3 / hr for a language tutor online (Amazing I know!). My tutor easily saves me many hours of learning time so blamo, I’m all in.
  • Bring in a cleaner every 2 weeks. I don’t like cleaning and cleaners charge very little.
  • Now I pay handymen to do what I don’t like. I was raised to be a handyman, but most of the time it’s really not how I want to spend my days. Cleaning gutters, blech. Joe down the street will do it for $50.

You don’t have to go so far as me but set that number and once you know what you don’t like and how long it takes to get it done, calculate and offload!

TL;DR – Frugal Living

  • Dropping costs is a real game-changer to get you super finances
  • PLUS you don’t have to do it forever – just until you have some real money – then you can start adding those little luxuries back into your life, but just the ones you really care about
  • There are great ways to spend money on yourself but still save tons. You just have to make the choice of what’s worth it for you. 

What about you guys? Have you dropped any “necessities” that have helped you save to a frugal living life?

The Best Way to Take Charge of your Money

You likely read a lot about money. But did you know you probably missed the real first step to taking control of your finances? Make it easy! Everyone should start by making assessing thier finances easy and the easiest way to do that is with Personal Capital (it's free!). It automatically:
  • Aggregates all of your bank and investment accounts
  • Adds up your fees
  • Points out your cash flow
  • Estimates your retirement readiness
You could not sign up but then everytime you want to think about money, you need to log into ALL your accounts, mentally tally it up, maybe even write it down. THEN you can start thinking. I'm not a lazy person, but when something is harder I do it less. Make your finances easier so you can spend your mental energy in the right places. It's well worth the few minute signup!

Mr. FYFE's Top Tips to get into Financial Shape

#1 - Buying Managed Farmland. Real estate is awesome. But what is even more awesome when you have money, is real estate that is totally uncorrelated to normal financial markets. Meet easy farmland investing with hands off >12% returns! I recommend Acre Trader because it's awesome.

#2 - The news is bad for you. It takes up too much time, makes you dumb, and stresses you out. You should spend that time on other things. Limit yourself to JUST 1 newsletter per day. I recommend the FREE MorningBrew which I review here. Make sure you confirm the subscription!

#3 - Take a course about real estate investing. Real estate is an AMAZING vehicle to build wealth quickly and build income long term. I tested a few to find SparkRental's course to be king.
Sept 2020 Update: I temporarily have a MEGA discount ($500 off) for my readers who take the course. #WorthIt. (Buy button appears near the end of the video which you can fast forward/skip if you want.

4 thoughts on “Frugal Living: Everyone does it WRONG”

  1. We dropped cable. When visitors children come over they ask where the TV is…they are creeped out. Haha but it was one of the best decisions. We also use prepaid phones because we aren’t into new age tech. 30-40/month and we still get high speed data, as much as we need. Then we purchase $1-3 movies and watch on a dvd player/computer.

    • Whoa you are more intense than I am! I would be lost on a highway somewhere without my phone. I don’t have cable though! To be honest I can’t figure out why people would ever get it :O


Leave a Comment