Being frugal doesn’t mean that you hoard your money and never spend it. It means that you spend money on things you value and you don’t spend money on the things that you feel are unnecessary.
Let’s take Ed Sheeran for example. He is worth hundreds of millions of dollars but chose to live on a budget of $1,000 per month for a period of time. BUT, he also donates a significant amount of money to multiple charities that he created. He once said “I have enough to be comfortable and the rest goes to help people.” He feels no pressure to try and keep up with a celebrity lifestyle. He uses his money in alignment with what he values most.
Or let’s look at Warren Buffett. He is one of the richest people in the world with a net worth of over 100 BILLION dollars AND he uses coupons and eats at McDonald’s regularly. He’s been living in the same house that he bought in 1958 for $31,500 in Omaha, Nebraska.
How do you apply all of this to your own life? Take the time to understand where you spend money today. Make sure it aligns with what you value and you don’t start spending more money on things just because you have it or you see other people doing it. Focus on relationships and freedom, what actually brings happiness.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane