A known fact is that human beings have a natural need to complicate even the simplest things and even though our lives are complicated frugality does not need to be complicated. It can be done using a couple of simple steps.
The truth is that the first thing is to become well versed with how much one earns, how much they spend and where the money goes to because this is where frugal living begins and without this baseline information effective budgeting and saving will never be attainable.
A majority of people that intend to save live within their means but frugal people live below their means and the surplus generated from living below one’s means can be used to as capital for saving and investing and used as a fuel source to reach that long-term goal of financial freedom. A known fact is that if one is unable to get a surplus by reducing expenses or growing their income, then they fail to get ahead of their finances and attain their financial goals.
The other critical thing is to know the difference between investing and spending because they are entirely different. Simply put investment involves giving out cash in exchange for an asset like shares, job training or a primary residence whereas spending, on the other hand, is the giving out of cash for something that decreases in value and does not provide any long-term benefit like eating out or buying designer attire. It is worth noting that being frugal does not equate to always choosing investing over spending (because spending is a requirement in life) but it does require someone to understand the difference and know how to channel their income to work for them most of the times.
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The truth is that frugality is not about choosing the cheapest items but about carefully seeking out the best value, and that can at times be the difference between selecting quality over price. High-quality items also last longer compared to cheap things.
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It is a known fact that frugal people are aware that interest on consumer debt is a tax that people pay accrue due to living past their means and while a credit card can come in handy from time to time but embracing easy credit as a way to fund a lifestyle can have grave effects. Interests and other charges will take up a huge portion of the budget and kill any hopes of the person achieving financial security.
The frugal spender has to comprehend the difference between a need and want. An important fact to note is that our needs are simple (good food, good healthcare, good shelter) whereas a need is something that makes out lives easier but it is not a must have.