You know, there is a lot of articles out there on how to be frugal, but there doesn't seem to be as much talk about staying frugal. Like, why would anyone want to STAY frugal?
Well, it might sound like a crazy question, but if you think about it, that's the biggie isn't it? Because like most anything else in life, frugality only works best when you can stick with it.
So how does one STAY frugal? Um, I'm not sure! How about you, what do you think?
Well, I can tell you why I am still frugal, despite having been debt-free and with the net worth chugging along. The simple truth? Well, I'll tell you....
Fear.
Yeah, when it's all said and done, it basically comes down to that.... Because, look, we've all done the numbers on here, and we all know what it takes to achieve any sense of financial freedom.
And for most people, that number is actually pretty big. And I don't mean a fancy life either. Think about how much a house costs, and how much cars cost per year, and basically just trying to create a living for yourself.
And that's assuming that I will keep working without problems into the foreseeable future. Heaven forbid if I run into an accident that leaves me physically disabled or I become ill and am hospitalized for a long period of time.
And if I'm lucky? Maybe I'll even be able to work towards having passive income to replace my active income, which will eventually become necessary as I get closer towards retirement.
As you can imagine, once you know the true amount that is needed to achieve financial freedom... you can't put that genie back in the bottle.
So, even though I am doing fine right now, I am not so delusional as to think that I've got it made. Far from it. And that's why I am as focused as ever to maintain frugality and financial progress.
Some people might think I'm being overly-cautious, but I disagree. The best time to prepare for potential problems is when everything is fine and you can afford to, not when it's about to strike or is already upon you.
And if I'm wrong? Well, having a little bit too much money is the kind of problem I wouldn't mind having. 
Of course, running on pure fear isn't healthy, and I do enjoy the process as well. But anyways, now you know why I am still frugal, and still here. And now you'll also know why I'll never fall off the frugality bandwagon.
So, how about you? I'm really interested to know what keeps you frugal? How do YOU do it?
Staying frugal
August 21st, 2009 at 05:48 pm
August 21st, 2009 at 07:15 pm 1250882119
First - the level of my personal frugality evolves with time. I've been very broke and have had NO wiggle room, in the past. Today I feel like we have a little wiggle room for a little more luxury. & if we exceed our goals, I feel like we even have room for a large splurge. I think the key is really keeping "fixed costs" as low as possible. If you get a bonus and want to splurge on a trip - what does it really matter. As long as your ducks are in a row, and you aren't increasing the amount of money you are relying on for daily living. I guess that's my overall philosophy. There are many shades of frugal. If I lost my job tomorrow, no doubt I would be hitting an extreme shade of frugal for a while.
Second - Motivation? I think people who are struggling financially are kind of stuck in the "little picture." How many times has someone told you to "lighten up" financially? That's when it is relative. To the homeless person you are doing great. Doesn't mean much about how well you are prepared to support yourself for the rest of your life.
Life happens. I've just thinking about it a lot lately in terms of my parents. May face early, forced retirement, or permanent disability. As prepared as they are (7 figure net worth and only living on 1/3 of their income) this will set them back quite a lot. I think they will be okay, but they are worried about it. This certainly changes their course, quite dramatically. One dream they had was to continue to live where they are now. That might be out the window if they need to tap their house for cash. (Though they certainly are lucky to have that option).
For me, early retirement isn't a particular goal of mine. I like working and prefer to live life the way I want to while I am young (the whole idea of living heavily for the future, just bugs me). BUT I can appreciate being prepared and how valuable my paycheck is with youth and good health. I will try my best to prepare for disability or any other unforeseen hardship. Hope for the best; PRepare for the worst. That is my motivation.
Sure, 10% to retirement may be fine if I never face any hardship in my life. How realistic is that? What is the probability of never losing a job or having a health problem? 0%? For that I will always save more than the average person would deem necessary.
August 21st, 2009 at 07:53 pm 1250884407
Jerry
August 21st, 2009 at 08:30 pm 1250886610
Jerry, I think you're really on to something there. I too find the joy in it, but more than anything, perhaps it's like a way of life that develops and becomes habit. For example, there's still a lot of people that not only have credit card debt, but believe that having credit card debt is as normal and American as apple pie and 4th of July. I once thought it was normal too. No longer. Now, I would think I've gone crazy if I started carrying credit card debt.
August 21st, 2009 at 08:34 pm 1250886885
Never wanting to be where I was before keeps me doing what I'm doing now. When people make fun of couponing; I ask them for a $1. and I tell them I'm going to set it on fire and they just look at you. But that's what you are doing when you don't use coupons. You're throwing that $1. away. Anyway, thanks for the post.
August 21st, 2009 at 10:34 pm 1250894096
I feel I now have more than enough for my needs. With my frugal ways, I have achieved a level of security whereby I know I can survive and thrive no matter what my financial flow is, or the vicissitudes of the economy. I doubt that I would measurably alter my lifestyle or consumption based on more income.
Maybe this is the same as achieving negative buoyancy in scuba diving! I find there's a sense of absolute balance in finding the "right" level of frugality for one's own
time and place in life.
August 21st, 2009 at 10:38 pm 1250894336
August 22nd, 2009 at 04:09 pm 1250957372
My dh is a good example. He KNOWS what will make him happy. He just hasn't had the guts to go for it. His parents held him back, as most parents tend to. ("HE should get a business degree instead a film degree." Their angle. I think he would have been FAR happier and better off, and better paid even, with the film degree. I get pissed off just thinking about how many years he has lost on the career he preferred.).
August 22nd, 2009 at 07:03 pm 1250967813
August 27th, 2009 at 12:33 am 1251333226