Comments on: Frugality, Freedom, Hard Work, and the Best Life Has to Offer

By: Fred

Fred — Fri, 16 Jul 2010 17:40:08 +0000

I found this article searching for Frugality and Freedom – looks like I found it about 18 months after it was originally posted. I’m glad I found it because it captures the essence of the life I’m trying to live. In my book, Frugality = Freedom. By living frugally, you are never chained to a job just to pull in the salary. You have the choice to work elsewhere for less.

An interesting story to add to the discussion…

When I was completing my evening MBA about 5 years ago, my finance teacher taught us a very important lesson that was outside the scope of financial modeling (the course I was in).

During the day, this teacher served as a managing director in a large energy company. He said that when it came to staff, his philosophy was to hire the best talent he could, then pay them *higher* than market rates by about 5%. He worked them very hard, demanding many evenings and weekends, especially when the job heated up. But, he knew they couldn’t leave because he was already paying them beyond what they could find elsewhere — and he encouraged them to spend on things they would enjoy, cars, houses, restaurants, “the good life”, etc.

I thought to myself at that moment: “Wow, I would HATE to work for this guy.” But the employees didn’t necessarily hate him. They might not have even known, or maybe they did and they thought the 5% was worth it. Whatever the case, these people were probably wage slaves–stuck in a job to afford a lifestyle to which they had become accustomed.

Meanwhile, this teacher was telling the class that he lived a frugal life so that he had options to pursue other companies and take on more risk.

I learned a lot from that teacher… Not only was he a GREAT finance teacher, this single lesson from his class re-shaped my thinking around frugality.

By: Jason @ MoneyTheory

Jason @ MoneyTheory — Thu, 22 Jan 2009 06:10:15 +0000

Being frugal by no means implies that a person doesn’t have fun! I mean, some people do indeed think that they have to go out and spend a lot of money on “the best” just to have a good time. Sometimes, things are really only as expensive as a person makes them, and spending less on them just makes sense!

By: Amanda

Amanda — Wed, 21 Jan 2009 23:03:08 +0000

Excellent post – I’d frame this one. It’s inspiring.

By: Urban Frugal

Urban Frugal — Wed, 21 Jan 2009 20:00:58 +0000

Everyone who I have ever mentioned that “money is a tool” line to has always said it was because you have more money that I do. No, it’s not that I have more money, it is just that I make better choices about what I spend my money on. If I save up over the course of a year and buy a concert or theatre subscription that’s my choice. It may mean not going out to lunch every day or making coffee at home but those are choices I have made.

This doesn’t mean that I am neglecting saving or other bills, just using my discretionary spending differently!

By: Cathy

Cathy — Wed, 21 Jan 2009 17:30:45 +0000

This is why I keep coming back to read your articles. We share similar philosophies. I live well below my means because what I can have now isn’t as important as my long term freedom.

By: Saver Queen

Saver Queen — Wed, 21 Jan 2009 16:18:47 +0000

I love your philosophy about money, Trent. I feel the same way. It’s about enabling what I really want in life. I love this saying: discipline is remembering what you really want. I want my money to enable me to pursue my dreams, goals, and create an environment in which I can feel safe, free, and happy.

By: Jimbo

Jimbo — Wed, 21 Jan 2009 15:07:31 +0000

What’s going on with this blog’s posting schedule???

By: The Personal Finance Playbook

The Personal Finance Playbook — Wed, 21 Jan 2009 14:43:57 +0000

I try to balance being the accumulation of money and enjoying my life as well. It’s tempting to just save every penny and never allow yourself any indulgences, but, like other on this site, I have a wife that keeps me in line!

By: Mary

Mary — Wed, 21 Jan 2009 13:47:11 +0000

Trent:
Right on! This is what I love most about your sight–you say what I’m thinking, but way better than I ever could. You rock.

By: Battra92

Battra92 — Wed, 21 Jan 2009 13:05:36 +0000

People sometimes wonder why I “stash my money away” when I am not (and most likely never will be) married. I have no kids and do not want them. I don’t own a house (heck, I’m not even living along) and I don’t see myself doing so in the near future. So why am I buying the cheap brands? Why don’t I ever go out for lunch? Why do I put off major purchases until I have the cash?

Sometimes I do question this. I learned a lot of bad habits from friends and family who had to buy everything they wanted despite what tomorrow would bring. I look at how my grandmother will most likely be selling her house and moving into my parents’ house once I move out.

I don’t want to be in that situation in the future so I’m stashing my money away for the future. I don’t know what the future is but I want to be prepared.

By: Oskar

Oskar — Wed, 21 Jan 2009 12:47:04 +0000

Great post, thanks again for putting into words what many of us are thinking.

By: Happiness Is Better

Happiness Is Better — Wed, 21 Jan 2009 12:24:04 +0000

Being that you are frugal, I think that you have an honest respect for your money and the time it takes to make that money.

Good for you for sticking to your guns.

Great post!

By: Steve

Steve — Wed, 21 Jan 2009 06:35:26 +0000

It’s posts like these that keep me coming back! Great post!

By: Larry

Larry — Wed, 21 Jan 2009 01:56:36 +0000

Nice essay….I receive your writings in my email each day…some I read more closely than others…this was a good one. In the past two years I have changed my own life in many ways. One of the areas I think allot about are making money – and the time spend doing just that. Now, in the past and in the future. How much of my life am I willing to put towards earning money…what do I miss and have missed in working 40 or more hours each week. I concluded there has to be a different way or a different model to follow. I struggle with just what that is….what is important…where to focus my time…the trade of working and or of following my interests whereever they lead me….and the balance of it all.

By: the weakonomist

the weakonomist — Wed, 21 Jan 2009 00:49:01 +0000

This would make a fantastic essay, or the basis of a book. I find myself constantly battling with the accumulation of money, vs actually spending it. Thankfully I’m marrying a great woman that knows how to make sure I enjoy money.

By: Trevor - 14 Year Old Money Blogger

Trevor - 14 Year Old Money Blogger — Wed, 21 Jan 2009 00:18:35 +0000

Nice post. Shows money and your life. Don’t get too caught up into it.

By: BonzoGal

BonzoGal — Wed, 21 Jan 2009 00:01:41 +0000

I think Amy Dacyzyn also said somewhat the same thing- you use frugality as a tool to get the things in life you REALLY want. These “things” include security, peace of mind, good times with family and friends, etc. You might delay a pleasure, but you end up with something stronger than mere pleasure: joy.

By: BirdDog

BirdDog — Tue, 20 Jan 2009 23:51:41 +0000

Great post, Trent!

By: Laurie

Laurie — Tue, 20 Jan 2009 23:04:18 +0000

Excellent post, Trent. When I was still working, I felt much like you do: the best moments were those where I had no immediate obligations (which usually happened when I was AWAY from home). Though it often seemed to me that most of my time was spent working to make money, learning to save and invest money, and making certain I didn’t slip off the straight and narrow financial path that leads to a reasonably well funded retirement (all of which I sometimes strongly resented), I’ll tell you this: it IS worth it.

My husband and I have been retired for 5 years, with modest financial needs. We live and travel in an RV, and now the order of life is reversed – we spend most of our time free of obligations and responsibilities, and our money is working for us instead of the other way around. We visit with family and friends, make new friends, and volunteer. There is relaxation and delight to be found in every day.

Living frugally is an important element of building the future you want. Another is the maintenance of good health – it is as powerful as putting money in the bank.

Good luck on your path!

By: Sydney

Sydney — Tue, 20 Jan 2009 22:52:15 +0000

Excellent post, Trent. I emailed it to my daughter because you said things the way I would like to, but haven’t been able to, that express the positive aspects of frugality, and how it can open up more freedom and opportunity in the future. Thanks.