Why I m So Frugal

When people hear the word frugal they often think of extreme couponing, someone who is cheap and depriving themselves of all the pleasures in life. But that's not what being frugal is about. Being frugal is about getting the most value for your money. Essentially it's weighing the cost to the benefit. A frugal person is smart with their resources and will try to make the best decisions with their money that will ultimately give them the best bang for your buck. Now how do I practice frugality? Practicing frugality doesn't mean I never spend money. It means I spend it intentionally and wisely. I don't have an endless supply of money so I prioritize my spending in areas that I value the most and spend less in areas that don't mean much to me. And if I do spend money I always try to get the best deal possible without sacrificing time. The older I get the more I realize that time is the most valuable asset. So when trying to save money or spend money I make sure it's worth the time. When spending money I consider how much time spent working will it take to afford a purchase. Treating time like money is a good way to keep yourself on budget without a budget. I tend to ask myself before making a purchase is this a want or a need? If it's a need I get it. If it's a want I make sure it's worth my time and something that adds value to my life. And for my favorite purchase an investment that will make money. As for saving money I know all the tips and tricks that If you want to learn them check out the money saving guide up here or look for the link in the video description below. Now don't think of saving money as depriving yourself. Think of it as paying less for the same thing so you're more efficient with your money. And don't think of saving money as never spending money. You're just saving money to have more of it for the things you value. Before embracing frugality my financial life was chaotic. In my early 20s I dropped out of college and got into the trades. I became an ironworker and was making $60-70k a year. I didn't have many financial obligations at the time but for some reason I was still living paycheck to paycheck. Even finding myself needing to use overdraft every month. I had $10,000 in student loan debt and probably around $10,000 in credit card debt. Where was my money all going? Apparently at that age the thing I valued the most was going out drinking and partying every weekend. Buying expensive clothing and shoes and just throwing my money around like I didn't want to keep it. After a few years of this I just got sick of it. Sick of being broke even though I made good money at the time. I wanted to get out of debt and start saving money. I didn't have a reason why. I just knew I didn't want to be broke. I still remember the date. September 23rd, 2014 was the last time I went in overdraft. In August 2015 I made my last payment to my credit card debts. It's been almost 10 years since I decided to turn my finances around and I'm 100% sure I know why I'm so frugal. I'm buying my freedom. The typical Canadian will start working at age 18 and will work till they retire at 65. They will work 40 hours a week and spend almost 1 hour a day commuting to and from work. And there's even workers who will fly across Canada to camp jobs where they will spend weeks to months working away from home. They do this not because they want to but because they are stuck in the rat race of life. They have a lot of debt and if they don't make the most money possible they will not be able to afford their lifestyle. I don't want to play this game. Life is precious so I make smarter decisions with my money which will result in needing to work less and have more time enjoying life with my family and friends. Will a million dollar house, a $100,000 truck and a $40,000 side by side help me achieve this goal? No. But I'll need to work like a dog to pay for it all. It's kind of like the song The Cat's in the Cradle. It's about a man who has a son but he's too busy with his career to spend time with him. As they get older the father now wants to spend time with the son but the son is busy doing his own thing. The father retires and never gets to spend quality time with his son because now he got his own family and career. I don't want this to happen to me. I want to be able to spend quality time with my son and at the same time make sure that he gets the opportunities to do the same with his children. Being frugal helps me spend less so savings can go towards investments that will help me achieve the goal of freedom sooner. Now what if you enjoy working and this benefit doesn't apply to you? Well there's other reasons why you may be frugal. Like having an improved financial situation, having more money for the things you care about, and having a peace of mind that money can buy. Financial stress can lead to relationship problems, physical health problems, and mental health issues such as depression or anxiety. So if being frugal can minimize these issues it's time to consider practicing frugality. Being frugal also buys opportunities. As a frugal individual you may have minimal debt, emergency funds, and a healthy-sized savings account. This allows you to take more risks which can open up more opportunities. Investment opportunities for growing wealth, job opportunities for changing careers, business opportunities for starting a business, and even opportunities to take time off work. For example, when my son was born I was able to take six months off to be there for my wife and son. This luxury of taking time off isn't possible for many. But because I'm frugal I was able to do so without financial stress. Currently I'm in the process of starting my own business. Frugality has helped me save up some of the money for capital in my business and also have extra money set aside to keep bills paid till I get on my feet. You shouldn't be frugal for the sake of being frugal. You need to have clear reasons why to keep you motivated and keep you on track with your financial goals. Being frugal shouldn't be treated like a diet. It's a lifestyle and it's a lifestyle that everyone should adopt no matter how much money you have. Just don't be one of those extreme frugal people and don't mix up frugal with cheap. You guys are cheap. Thank you for noticing, thank you. Frugality isn't the only factor in the equation to success. You also need to be good at making money. And in order to be good at making money you need to be disciplined, ambitious, and be a risk taker. Now if you're up for it check out one of the videos on the right of the screen.