Although it was a few years ago I remember it like it was yesterday, buying as many e-books as I could and scouring the internet constantly looking for ways to increase my income and save more cash in order to turn the future I envisioned into a reality.
While reading, the word frugal and embracing frugality came up time and time again.
Paragraphs similiar to the below become more and more apparent…
“You can be one of those foolish people that enjoys themselves today or you can become one of us, a penny pincher that expends a dollar only when and if it’s absolutely necessary, should you choose to join us you’ll be laughing down the road when the epicureans are unable to build a future or sustain the life that they want”
Purchasing your uncooked rice in 50lb sacks in order to save a couple of bucks, only buying a new pair of shoes once you’ve literally walked the soles off yours and driving to the other end of town to save a dollar or two on a tank of gas are a few of the ‘gems’ I uncovered during this time.
“Since I stopped buying decent running shoes and replaced the cold pressed juice I drink every morning with a cup of green tea I’ve been able to save an extra $85 per quarter.”
I used to think that was a great move, looking back now there’s several big problems with frugality… Check out my 5 reasons below.
5 Reasons Why You’re Shooting Yourself In The Foot By Practicing Frugality…
Frugality advocates making do with what you have and, when time does come to make a capital purchase or replacement an existing item you’ve worn into the ground you’ll be getting a sufficient replacement, nothing fancy.
This is fine when it comes to certain items – take a desk, a kettle or a plain T shirt.
But when we’re talking about running shoes, a laptop or an office chair being frugal doesn’t pay off.
I’ve experienced it first hand, you may save a hundred dollars today, but something far more valuable, your productivity and progress suffers.
I bought a cheapy cheap laptop a couple of years ago, it took me three times as long to edit and render videos as it does today, was that $500 saving worth the frustration and additional hours spent? Hell no.
Frugality Cuts Cost At Any Cost
Your health comes first, period.
You could practise extreme frugality and save an additional $20,000 next year – but if your health suffers you haven’t saved a thing.
High quality fresh produce is expensive.
Frozen, processed foods loaded with preservatives and crap are cheap as chips.
As I mentioned above, save money on a kettle or a T shirt, not on the absolute essentials such as food.
Many ‘frugal living’ and ‘frugal cooking’ books out there justify eating 1,200 calories a day and preach eating essentially only carbohydrates as they’re far cheaper than protein and quality fats.
“All you need is rice, beans and oats, it might taste a bit bland but you’ll supercharge your savings.”
Frugality Is Scarcity
Frugality in my eyes is essentially putting yourself in survival mode.
Resources are scarce, you’ve got to hold onto what you’ve got!
Resources are everywhere, opportunity is everywhere.
One of the pivotal points in becoming an ultra producer and increasing your income is adopting the abundance mentality – there’s opportunity for you EVERYWHERE.
You just need to look in the right place and approach the niche or job with the right mindset.
After you’ve made this mindset shift time should be focused on growth, you won’t find someone cutting corners and costs in every conceivable place that’s practising extreme frugality.
Frugalista’s Don’t Understand Opportunity Cost
I’m happy to pay for convenience because I know time is the most precious asset in my arsenal.
Time also offers me the most opportunity.
I still know guys that’ll drive 20 miles just to save an extra few cents per gallon at the gas station – they don’t understand that the extra half an hour that this frugal act took out of their day didn’t really save them $3, it wrote off half an hour of their day in exchange for $3.
I’d rather pay an extra $3, save time and spend that half an hour of time that I would’ve saved to read a book or write a blog post, both of which I know will make me substantially more than $3 in the long term.
It’s Not Scaleable
If the above 4 reasons weren’t enough to convince you why frugality isn’t the answer then this one will.
Frugality cannot be scaled.
Making money online and producing results in almost any field can.
Hours spent figuring out how to save $10 can be spent learning to make $10.
You can only cut that expensive or downgrade that thing and save $10 once.
Once you’ve found your way out of the scarcity mindset and have adopted the abundance you’ll start producing.
Once you’ve learnt how to make $10 you can replicate this and scale it, be it with virtual assistances, larger quantities or advertising to a bigger audience… that skill or technique used to make $10 can be scaled up to $100 then $1,000 and beyond.
Production is limitless because it’s scalable.
$10 saved is just that, $10 saved. It’s not scaleble.