Buying things is like a leech, it sucks out all your money and takes it away never to be seen again, frugality is like salt it’ll completely diminish that and save the day.
Growing up I never really had that savings instinct. I would get $20 on my birthday and blow it instantly on something unnecessary. Even today I still battle the constant niggling that I need to buy something. But it’s possible to slowly get used to spending less and less.
How to Start Being Frugal
It’s all just a mindset. You don’t have a biological need to purchase or save money. Psychologically it’s a different story. Everyday we see ads on the new best deals for whatever item. Sales up to 75% off! But do you really need that new object?
Frugality is a skill that can take years to master. You have to think twice before buying something. As a teenager we have no other expenses to worry about, so the only thing we are buying is new things we probably won’t use. This is why it’s good to start now.
When you don’t have to cut out expenses to pay a mortgage it’s pretty easy to stop buying new clothes or tech that really isn’t necessary. I have started looking at where I spend the most money on which would be entertainment and devices. I think to myself if purchasing that item would change my life or bring me profit. If it doesn’t I instantly forget about it.
You can start frugality with the small things. If you only get cash on holidays, save it instead of buying something that will only bring you joy for a few days. It is simple and it will greatly improve your financial health.
Why Be Frugal?
Let’s go to the future. Say you’re now 27 and you have just bought a house. You have a monthly income of about 5k that’s a $60,000 salary. Now you can live like you make a 5 figure salary buying new cars, tv, going out to dinner, and vacations. Or you can live like you like 25k a year saving and investing the rest. Instead of financial independence in 50 years imagine 10 or even 5.
Now I’m not saying don’t buy things or don’t go out to dinner, if that truly would mean something to you then just fit it in your financial plan.
Also if you want to live below your means it doesn’t have to be an extreme gap between your salary and expenses. You could make 50k a year and live like you make 40k. You are still saving it’ll just be at a slower rate. Enjoy life and do what is best for you.
Frugality Long Term
If you’re thinking about your future hopefully it’s long term and not just a year. When you want a long term result you must act in a way that will produce it. You can’t expect that once you reach a financial goal such as a 1 million dollar net worth that now you don’t have to be frugal.
If you continue being frugal you will accumulate wealth continuously to support the lifestyle that you want, but enjoy life in the process.
Financially Independent Adolescents 