Why I’m so Frugal

Summary

In this video, the creator shares their journey of adopting a frugal lifestyle, explaining the difference between being frugal and cheap. By making intentional choices with money, focusing on needs over wants, and prioritizing sustainable living, they reveal how they save money while maintaining a fulfilling life. They offer practical tips for saving on groceries, transportation, and daily expenses, while also highlighting the importance of investing in personal growth, mental health, and experiences. Ultimately, the video encourages viewers to embrace frugality as a path to financial independence, peace of mind, and a more intentional life.

Takeaways

• 😀 Frugality is about making intentional choices with money and resources, not about deprivation or being cheap.
• 😀 A frugal lifestyle allows for more free time and less stress, as it eliminates the need to keep up with societal trends and expectations.
• 😀 Growing up, the speaker learned the value of hard work and rewards, instilling a lifelong habit of saving and finding the best deals.
• 😀 Sustainability plays a significant role in the speaker's frugal choices, from using items until they are unusable to opting for secondhand goods.
• 😀 Small habits, like turning off lights, unplugging electronics, and minimizing water usage, significantly reduce utility bills and environmental impact.
• 😀 Meal planning and sticking to a grocery list are key to saving money on food, with the speaker spending under €40 a week on groceries.
• 😀 The speaker prioritizes investing in healthier food, self-development, and mental health, considering these essential despite being frugal in other areas.
• 😀 Frugality doesn't mean eliminating all joys or experiences—traveling and personal growth are seen as worthy investments.
• 😀 Tracking every expense is crucial for identifying where money is being spent and finding opportunities to save more effectively.
• 😀 A 'No-Buy Month' is suggested as a way to reduce unnecessary spending and challenge yourself to be more mindful of your purchases.
• 😀 Mental health is considered a non-negotiable investment, with therapy being prioritized as an essential tool for well-being.

Q & A

What is the difference between being frugal and being cheap?

Being frugal is about making intentional choices with your money, prioritizing needs over wants, and finding ways to save while still maintaining a good quality of life. On the other hand, being cheap involves avoiding spending money altogether, often sacrificing quality or happiness to save a little extra.

Why did you decide to live a frugal lifestyle?

I decided to live frugally because I want to make intentional choices with my money, reduce unnecessary stress, and focus on what truly matters. I also want to avoid living paycheck to paycheck and instead focus on building wealth and a fulfilling life.

How did your childhood experiences shape your approach to saving money?

My dad taught me the value of hard work and earning rewards from a young age. I remember earning points for chores and academic achievements, which helped me understand the relationship between effort and reward. This made saving money feel like a fun challenge, and I still carry that mindset into adulthood.

What role does sustainability play in your frugal lifestyle?

Sustainability is a key aspect of my frugality. By reusing things, buying secondhand, and fixing items instead of buying new ones, I not only save money but also reduce my environmental footprint. It's about making choices that are good for both my wallet and the planet.

How do you manage your groceries to keep costs low?

I plan my meals every week, create a shopping list, and stick to it strictly. I also check for discounts at different supermarkets and bring my own bags. By planning ahead, I avoid impulse purchases and keep my grocery costs under control, typically spending less than €40 a week.

Why do you prioritize saving money on small things like groceries and coffee?

Saving money on small expenses like groceries or making coffee at home adds up over time. It allows me to allocate more of my budget to bigger priorities, like investing in personal development or experiences that contribute to my overall well-being.

What are the biggest expenses in your budget, and how do you manage them?

The biggest expenses in my budget are housing, transportation, and insurance. To manage these, I make intentional decisions like using public transport instead of owning a car, comparing insurance options regularly, and minimizing unnecessary subscriptions.

How do you track your spending and why is it important?

I track every penny I spend using a Notion template I created. Tracking my spending helps me stay aware of where my money is going, so I can make informed decisions, adjust my budget, and ensure I'm saving enough. It's an essential tool for anyone who wants to be financially responsible.

What is your approach to purchasing items, and do you ever buy brand new products?

I prefer to buy secondhand or shop at charity shops whenever possible, but I do buy brand new items when there's a special reason, such as natural fabrics or companies with strong social and environmental values. I always do my research to ensure I’m not falling for marketing gimmicks.

What are some things you willingly spend money on despite your frugal lifestyle?

I spend money on things like healthy food, personal development courses, and travel. These investments contribute to my well-being, mental health, and growth. I also invest in therapy because mental health is an essential part of living a balanced, fulfilling life.