Does Frugality Make Someone Rich?

Frugality is one of those concepts that we discuss when the issue of personal finance is raised. The subject has triggered different arguments.

Some say, it doesn’t play any role in making you rich, while some believe that it’s a strategy to getting rich.

Matt Giovanisci, host of the podcast titled “Listen to Money Matters,” believes that frugality can hold you back when your frugal habits don’t align with what you want from life.

It doesn’t work when it doesn’t align with what you need, that should be given a thought.

Let say, your body is deficient in some of the essential nutrients, and you know you need to step up regarding the quality of food you consume daily, will you deprive your body the nutrients because you are frugal.

That way, it doesn’t align with what you need. That’s a typical example.

“Sometimes people see your financial focus as their failure and get defensive,” the blogger behind Club Thrifty and Travel Blue Book says. “Just focus on your goals and dreams and don’t worry about what other people say.”

The social life of individuals sometimes suffers due to frugality, but this scenario shouldn’t be a guarantee to start your spending spree.

You have a variety of clothes, drive spending car, but deep down, you know you have no savings at all. You are not alone if you are in that circle.

Frugality is often regarded as cheap. This is not true; it means channeling your cash to where you want it to go having value in mind while being cheap means spending your money on low-quality stuff.

“Most people spend money without thinking about it, and much of what they spend it on doesn’t make them happier or feel better,” says Gary Foreman, editor and publisher of “The Dollar Stretcher”.

“You can reduce this spending and not feel any less fulfilled.”

Obviously, frugality is just the opposite cheap. And the earlier you change your mindset about this; your spending habit will be changed.

Every time I cut back in one area, it allowed me to spend more in another area,” says James Spradmeyer, an Orlando, FL consultant,

“Living frugally didn’t mean I couldn’t have a social life; it meant that I could do more of the things I liked to do without panicking about how much money I was spending.”

When you’re frugal, you only initiate the avenue or roadmap to becoming financially successful. It doesn’t play a decisive role for you to become rich.

“Being too careful about savings and being too frugal of spending money, may be just the mindset that will never let you get rich,” says Michael Slavin, a Business Author.

“Most people become self-made millionaires by starting and growing their own business.”

The truth is when you are frugal, you may not be able to take risks. All you do is just to be protective of your money.

You’re always scared and skeptical to invest. Business is all about risks and frugality doesn’t support risk taken.

Do you save a certain amount of money when you’re frugal? Yes, you will, but it depends on the sum of money.

You may decide to be frugal and save some amount of money to start something, it happens. That way, it becomes an avenue to a successful life.

If you’re indebted and expected to pay in five years, frugality could make you achieve that in four or three years. If its business you intend to set up, the same thing happens.

Further, one thing about frugality is that you don’t need to be extreme to be effective. They always think before buying and never ready to spend little because of quality.

Frugality paves the way to financial success, it makes it easier but never a yardstick to determine how rich you can be. Hope this was helpful.