Frugality is the best personal finance tactic there is for seeingimmediateresults.
This post originally appeared onThe Simple Dollar.
If you choose not to spendor you choose to spend lessyou see the results from that choiceimmediatelyin your wallet.
Theres simply more cash sitting there.
Sure, there are many, many approaches to personal finance that offer great results.
Getting a part-time job is one.
Going back to school to get a better degree is another one.
Starting a microbusiness is another one.
Investing is, of course, another one.
Frugality isfast, and thats why people so often turn to it when their finances are struggling.
What about the long term, though?
Many people view frugality as a less effective strategy over the long term.Their argument is simple.
I dont quite see it that way.
Frugality is the fuel that keeps burning and sends that rocket going higher and higher and higher.
Without fuel, the rocket cant fly.
Without the rocket, the fuel doesnt go anywhere.
You need them both for success.
What does that mean in terms of practical use, though?
Frugality can help with that.
Thats $1,200 a year to invest.
Frugal choices make it possible.
So, undoubtedly,frugality plays a big role in financial turnarounds.
But what about when the financial turnaround is in high gear?
If you think that it is, youre making another financial mistake.
Your life is not made worse by choosing store brand diced tomatoes.
Your life is not made worse by canceling a bill for something you dont use much at all.
Why would you replace a reliable car that shows no signs of needing repairs or replacement?
Channeling frugal savings into investments means that youll get to your destination even faster.
It means that it’s possible for you to retire earlier or buy that dream house sooner.
That never changes, no matter how much financial success you have.
Thats $10 a month that you’re able to invest for retirement.
Thats $10 a month that it’s possible for you to put aside for an emergency fund.
This brings me to the one sensible argument against some flavors of frugality: the time value of money.
Heres the thing, though: What is your time worth?
How much is an hour of spare time worth to you?
Is it worth $20?
Would you pay $20 for an hour of uninterrupted spare time?
What about $40?
Different people are going to give different answers here.
It ends upsavingus time andsavingus money.
I visit the library every two weeks and usually leave with a bag full of books and movies.
I make a meal plan and grocery list before each grocery store visit.
I shop around forbetter rates on my car insuranceat least once a year.
Why would I not do them?
Why would I not enjoy 10 years worth of the money these tactics have saved me?
Frugality and Long-Term Financial Success| The Simple Dollar
Trent Hamm is a personal finance writer atTheSimpleDollar.com.
Image byEndai Huedlvia Getty.
