I get alot of misconceptions on frugality and it stems on being a miser, making use of others or living like you are in the 1970s.
Actually thats not it. Its about spending less than you earn and spending on things that is of value.
That would mean buying a $499 Chair compared to the $49 one since it last long and its good for the spine. Something along that line.
This Article from Digerati Life sums it up well:
The happiest people out there are those who can find a balance between any extreme, and it also applies to how we handle and manage our money.
Defining Frugality: Spending Money On Things of Value
Do you earn more and spend less? If your mind and heart are in tune with how you’re managing your money, if you’re able to build a healthy nest egg while spending much less than you’re earning, then I think you’re still in the middle of that frugality spectrum even if you happen to own a BMW, an art collection or a luxury condo (hey, this is an appreciating asset!). Yet this doesn’t stop others from judging you on what you own.
If we judge people based on what they own, then we could be missing out on some great lessons and examples given by true value spenders.
See, for instance, these consumer profiles:
- They spend much less than they earn but make so much money that they can afford expensive items.
- They buy a used luxury car because it’s half priced.
- They are selective about the high-priced items that they buy and don’t make impulsive purchases.
- The stuff they buy only looks expensive.