ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Frugality is the Foundation of Wealth

Updated on February 13, 2013
moneyman77 profile image

I've been an independent financial planner for several years now. I try to keep my advice as objective as possible.

Frugality is fundamental to wealth building.

What does it take to build wealth? A very high income or big windfall right? The truth is you don't have to have a high income or win the lottery. It's more about diligent investing of the money you already have. But where do you get the money to invest? You get it by being frugal. Frugality is the wise use of monetary resources. It starts with how you think. Think first before you spend money each and every time. Being frugal is more about defense. Making a high income is more about offense. Either one can work. But the one you have more control over is how much you spend. Remember it's possible to outspend any income no matter the level.

We are encouraged to spend money by society. Everywhere we turn we're told that if we just had this product or service our life would be more fulfilling. And so much of what we do as human beings is related to status. Status is a trap! Be wary of going down that road. I think spending money is fine if it's reasonable and it gives you satisfaction. Think how nice it would be not to have to work anymore for survival though. This scenario is very possible if you squirrel away money and let it grow. What's worse we are encouraged to go into debt as well which is bondage. Debt is literally mortgaging your future self. Don't do it! You have to put a stop to both excessive spending and debt if you want to build wealth. It's time to go from a spending mindset to an investing mindset. I personally like watching money grow. It gives me more pleasure than spending. You can do the same. And remember money makes money which gives you more options.

I've been a saver and investor ever since I was in credit card debt in the 1990's. I feel like an oddball sometimes though because it seems like most people would rather spend than save. The pressure to fit in is not to be underestimated. It's very hard to build wealth and net worth! There are powerful forces outside of us that are working against us! Most of us can't directly control how much money we make, but we can become more frugal. Frugality consists of getting a deal whenever we've decided that spending is the right course of action. That involves planning and research though, and those aren't real fun are they?

Change the way you do business and realize wealth is more about frugality than having a monster income. If you always live below your means then you'll have a built in surplus to invest. This surplus represents your financial freedom from reporting to a mean boss, being in debt, and having limited options in life. It's not even about being rich. It's about being free and having choices. And frugality is your ticket there.

© 2013 Blair Williamson, ChFC®

Comments

    0 of 8192 characters used
    Post Comment

    • vocalcoach profile image

      Audrey Hunt 

      5 years ago from Idyllwild Ca.

      I like the way you stated , " It's not about being rich, it's about being free." (I paraphrased )

      I'd give anything to have learned this lesson when I was younger and making good money. I'm an old lady now - it's too late :)

      Great advice and well written. Voted up and sharing.

    • tamarawilhite profile image

      Tamara Wilhite 

      5 years ago from Fort Worth, Texas

      Excellent advice. What you make is irrelevant if you spend it all.

    • Millionaire Tips profile image

      Shasta Matova 

      5 years ago from USA

      Congratulations on your Rising Star accolade! I agree that you must look at budgeting as a positive way to manage your money that makes sure you are spending it according to your priorities. It really isn't about deprivation, but about making sure that you are making the best use of it. Voted up.

    • Tonipet profile image

      Tonette Fornillos 

      5 years ago from The City of Generals

      I agree! There's no other way to start wise use of money but frugality. The question is if we can make it, because like you said, that is seems most people would rather spend than save, is true... like me! lol. But again like you, when I started a simple living where I only have to buy the things my money could afford than those I wanted, it has helped me lived that way, 'til now. Thanks to those credit card headache, I learned, too.

      Very helpful hub money man. Hubpages is right to pick this one among the best, and I'm sharing this across. More power and blessings! :=) -Tonette

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)