Last Updated on May 9, 2021 at 10:04 am
Here is how a frugal lifestyle can simplify and enrich our lives. The Merriam-Webster defines “frugal” as – characterized by or reflecting economy in the use of resources while some of the synonyms include economical, thrifty, provident a stark contrast from the word “Cheap” which is also used to describe people with similar attributes but has a very negative or derogatory trait to it.
About the author: Saket Dhotre is an engineer and MBA with 10 years of experience in the IT sector. He is a long-term student of personal finance and loves travel and everything tech/
A change in mindset is required about frugality. It should be an individual’s sought after trait & really means that you are able to reap maximum benefit from the money, time & energy you have invested in something & hence offers great value to you.
Media & Marketers have made people believe that buying more is good & is the only way to validate our lives & meet the society’s benchmark of exotic vacations, bigger houses (not necessarily homes), fancier cars & latest gadgets and flaunting it on social media to meet this goal post which keeps on shifting higher & higher but doesn’t necessarily equate to happiness in any way.
🔥Secure your future with our Robo-advisory tool trusted by over 3,500 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
With so much irrationality being served on a platter for consumption by the media there are many marquee names who have achieved great heights with the exact opposite mindset by simply valuing money & its consumption. Warren Buffet is a classic example with a net worth of $80 Billion who once said “I have everything I need to have, and I don’t need any more because it doesn’t make a difference after a point.”
What this means is that living frugally does not necessarily mean just spending less cash but instead requires changing one’s mindset from being consumer-driven to value-driven. And this is where a behavioural change is required as our mindset is a coherent reflection of our behaviour. Listed below are some of the changes you can undertake in your life to adopt this mindset
1. Less is More
“There’s no place like home.” and what better place to start than your home to undertake this transformation. Minimise the physical clutter in your home & sell, donate, discard items that you haven’t used in the past year which means you don’t need it anymore. The lesser the clutter in your house the less likely chance you spending on home decor. Sounds weird but is True. Try it!
2. Ten Second Rule for Online Purchases
Remove the ease of purchasing from your online transactions. A simple way to do this is to remove all the stored Cards & Banking Information/Passwords from shopping sites. This will suddenly make it a little harder to make the impulsive purchase & give you some time which we call the 10-second rule to evaluate your every purchase. As you try to get your sign-in information & look for your card details force yourself to think about whether the purchase is worthwhile & adds any value to you.
3. Limit Social Media
This is easier said than done but limiting social media consumption can greatly change your mindset towards spending. The constant pressure which an individual is subjected towards by the social media ads, so-called Influencers & your supposedly well-off peers on display 24×7 can influence your spending patterns to do things that affect your financial well-being in the long run. Instead, limit the websites & profiles you actively use & you will unknowingly save a lot of money due to possible bad decisions influenced by marketers.
4. Value your Purchases
Learn to value your purchases and figure if it has created any lasting value for you. This can be analysed in 2 simple ways – For goods, evaluate the item if it has been useful to you after a month or so. In case of consumables & experiences just ask yourself if it has created a positive memory or helped strengthen your relationship with others or created some form of lasting value.
Do this exercise on an ongoing basis which will then inculcate a habit of judging beforehand if the purchase will create any lasting value & the purchases which are not necessary. With this kind of mindset, you will learn to make better purchasing decisions on auto-tune mode.
5 Start saying “No”
This is the most commonly doled out advice by all the financial advisors but makes a lot of sense specifically when Frugality is the virtue you are trying to imbibe. We frequently come across people-pleasing friends & family who say “Yes” to everything only to end up complaining about the same thing later. To add to this spending money on people or things which really do not matter or add any value to your life is strong enough to say a big & loud “NO”.
We are on Google News
Use this button to add freefincal.com as a preferred personal finance source on Google News. 
Add freefincal as a preferred news source
You can also follow freefincal on Google News. 
Explore 1,000+ videos on YouTube!
Subscribe to get posts via email!
Join 32,000+ readers and get free money management solutions delivered to your inbox! (Link takes you to our email sign-up form)Join our WhatsApp Channel
Explore our products
🔥Join our community of 9000+ users! 🔥- Use our Robo-advisory Tool to create a complete financial plan! More than 3,500 investors and advisors use this! Use the discount code robo25 for 20% off. Plan your retirement (early, normal, before, and after), plus non-recurring financial goals (such as child education) and recurring financial goals (such as holidays and appliance purchases). The tool helps anyone aged 18 to 80 plan for retirement, plus six non-recurring and four recurring financial goals, with a detailed cash flow summary.
- Our Flagship Course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market conditions! Watch the first lecture for free! One-time payment! No recurring fees! Lifelong access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
- Join the freefincal investor circle! An exclusive space for investors, advisors, fintech employees and students to access financial planning and insurance tools, mutual fund and stock analysis tools, coding strategies and Excel macros for data extraction. 750+ members are now part of our investor circle.
- Increase your income by getting people to pay for your skills! More than 900 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for side or passive income, we will show you how to do it by showcasing your skills and building a community that trusts and pays you. (Watch the 1st lecture for free). One-time payment! No recurring fees! Lifelong access to videos!
- Portfolio Tracker! Track your mutual funds and stock investments with our Google Sheet!
- We also publish monthly screeners for
Our Podcast: Let's Get Rich With Pattu
On Spotify: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! On Audible: Listen to the Let's Get Rich with Pattu Podcast
Listen to the Let's Get Rich With Pattu podcast on YouTube.
Now watch Let's Get Rich With Pattu தமிழில் (in Tamil)!About The Author
Dr M Pattabiraman giving a lecture
- Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras.
- He has over 14 years of experience publishing news analysis, research and financial product development. He has over 28 years of teaching and research experience. He is also a public speaker and keynote presenter.
- He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free, AUM-independent investment advice.
- Connect with him via Twitter(X) LinkedIn YouTube
- Pattabiraman has co-authored three print books.
This book helps you ask the right questions and find the right answers. It also includes nine online calculators to create custom solutions.
(2) Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want. 
Both the boy and girl versions of "Chinchu Gets a Superpower".
Most investor problems stem from a lack of poor decision-making. We made bad decisions and money mistakes when we started earning, and we spent years undoing them. Why should our children go through the same pain? What is this book about? As parents, what if we had to groom one ability in our children that matters not only for money management and investing but for every aspect of life? My answer: Sound decision-making. So, in this book, we meet Chinchu, who is about to turn 10. The story follows what he wants for his birthday and how his parents plan it, while also teaching him key ideas about decision-making and money management. What readers say! 
Feedback from a young reader after reading Chinchu Gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from a young age. The importance of money management and decision-making based on their wants and needs. Very nicely written in simple terms. - Arun.
About freefincal & its content policy
Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact Information: To get in touch, please use our contact form. (Sponsored posts or paid collaborations will not be entertained.)Our publications
- Your Ultimate Guide to Travel. This is an in-depth exploration of vacation planning, including how to find affordable flights, budget accommodations, and practical travel tips. It also examines the benefits of travelling slowly, both financially and psychologically, with links to relevant web pages and guidance at every step. Get the PDF for Rs 300 (instant download)
- How to profit from content writing: Our ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only!