Why the Frugal Are Rich

Being frugal doesn’t mean you don’t have money for things, it simply means you choose not to spend money on expensive unnecessary items. Living frugal can make you rich in several ways and more than just by the amount of money you have.

Financially Rich
Of course when you hear the term rich you think of having a lot of money. That is part of the richness the frugal experience. Because frugal people do not care about keeping up with other people by purchasing fancy items, they are able to hold on to more of their money. Frugal people are not always financially rich, in some cases the frugal person enjoys looking for sales in an effort to save money in case of an emergency.

Rich in Heart
A frugal person may use there bargain shopping to help others in need. Some people see the frugal person as greedy but that is not necessarily true. Some people coupon and shop sales in order to donate the items to others. The avid coupon shopper is able to get some items in bulk for free and most will donate a portion. Being frugal also leaves money to donate to a worthy cause.

Peace of Mind
Frugal people will rarely find it necessary to take out high interest payday loans. In addition to not getting in a situation that requires emergency money, frugal people know that taking out a payday loan will cost them more in the long run. If a frugal person’s car breaks down they are likely to find a good deal on the repairs so that they can afford it. By saving money on all the day to day purchases they are able to rest assured that they will be able to handle any emergency expense. This peace of mind is a reward enough for shopping and living frugally.

Less Stress
Money causes stress. Stress causes health problems. Living frugal eliminates one area of stress from life. Knowing that your family is financially secure can make you feel free. Many frugal people live debt free which means that there are not car payments, loans or in some cases a mortgage that must be paid every month. Imagine the relief the frugal person must feel at the end of the month when all is paid and there is still money left over. Being frugal is a way of life for many people and those people enjoy the bargain shopping that allows them to live debt free.

Happiness
The frugal minded person is happiest when finding a good deal on an item they want or need. They enjoy the hunt for the deal as much as they enjoy the money they save. Saving money on needed items allow them to have money to do the things that make them happy. They are able to take time off work for fun and relaxation without worrying whether or not they will be able to cover bills. That happiness can be more valuable than the fancy car that makes the neighbor jealous.

Thrifty by Nature
Rich people are often living the frugality life style because they are thrifty by nature. When a person is thrifty, they have a natural instinct to know how to reuse something. They have a good eye for a great deal. Also, many rich people won’t buy new houses, new cars or even brand new clothes. They will often buy gently used items at the fraction of the same item brand new. Some people think that second hand stores like Goodwill’s and Salvation Army’s are only for the low and unprivileged. If you were to take a poll of the people that shop in these stores, you would find that the incomes levels are higher than you thought.

Entrepreneurial Attitude
Many rich people have multiple income streams. They have found ways to create income in many different places. While doing this they know that their money is important and not something to just through around. . Entrepreneurs are often taking frugality to another level. They will be very frugal with their money and only invest in places and new business opportunities that they know is going to give them a bang for their buck in return.

Respects Money
Many people will throw money out the window for things that they really don’t need or in places where the money just doesn’t need to be spent. Frugal people that are rich have learned how to respect their money. They will find ways to save money in the long run by investing in something now. An example of this is buying commonly used items in bulk or turning down the thermostat at night in the winter months and instead sleeping with a heated blanket. Purchasing items upfront can save money the other products that are more costly in the long fun.

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Daniel Smith is a passionate frugal based financial blogger. He believes it is very important to keep a balanced mind as well as a balanced wallet in these hard financial times.