America’s Self-Made Millionaires – How Frugality Can Be Cool

Posted By Ibropalic on Aug 4, 2018 | 0 comments

When you think of scrimping and saving dollars, it’s unlikely you’ll view it as something cool. However, frugality on everyday affairs allows you to afford the finer things and, in fact, 71% of millionaires self-describe as frugal. Far apart from just saving a few cents at the store – though that does make a big part of it – living a frugal lifestyle and spending where you want it is a philosophy to shape your entire personal finance regimen.

There are basic financial tips for all men that should be followed in the modern age. These are the foundations of your financial security. Taking it to the next level requires a culture shift and a dedication to focusing your time efficiently at every stage.

Curtailing and Fine-Tuning the Big Purchases 

At the heart of frugal living is a commitment to spending less. Simple, right? While you would think so, the bombardment of advertising can make it difficult to wind down your consumerism in the modern day. The fact is, setting goals as to what you truly desire and being reserved for spending is a sustainable lifestyle that will get you where you want to be, financially. The first step here is finding value in everything you do, whether that be picking the most effective option when financing a purchase, such as a car and a house, to reviewing gadgets and electronics you need to find off-brand, but equally efficient, models. Making the most of your big purchases will make the most noticeable dent in your spending habits. Do you need a big house now? Microhouses are definitely trendy right now, as USA Today has outlined, and cost under $100,000.

Taking it day-to-day 

Your big purchases should take in the most of your time. A key aspect of frugality is understanding the value of time and dedicating your time analyzing costs accordingly. Day-to-day purchases where there are obvious standouts should, therefore, take less time, but there are a few points to remember.

Cooking is a great example of being frugal in your day-to-day life. You will be more than aware that a shop-bought meal is going to be a lot more expensive than cooking, but if you make the time you won’t fall into the trap. This, in turn, frees up money for you to enjoy at the places you really love, with friends, in addition to your savings. Overall, cooking saves money on bulk, making savings. It frees up time in the day where you would otherwise be shopping for food, creating time. Finally, home cooking helps the environment, as Forbes has pointed out, providing future safeguards to your investment of time and money. Take a look at our manly sandwich guide for inspiration.

The key: savings and investment

The absolute cornerstone of a frugal life and the way self-made millionaires found their way to their spot is through investing. There is no point in earning your income, and scrimping and saving, if you immediately cash it all on purchases. This is why credit, while perhaps not frugal sounding, can be beneficial – you keep your cash, which you can invest at a higher rate than the credit interest while having the items you enjoy in your life. Use your time to research and make investments wisely, or use a fund manager if you are entirely inexperienced. A report in USA Today found that, according to Kimmie Greene, a consultant with financial services, you should be saving 25% of your gross income through your 20s, with a view of having a total of 8 times your annual income saved by 65. This might sound intimidating, but it is entirely doable – and all through frugality. For that inspiration, just look at Sylvia Bloom, an unassuming secretary who left behind $9M despite working her relatively low paid job without incident.

Frugality sounds boring, but the results are the opposite. It allows you to plan your life, to afford the prestige purchases you need, and to do it all in a sustainable fashion. Every young, up and coming man in America should be following the philosophy – it could define your life as a whole.