Mikael Rieck is the author of more than hundred articles on topics of how to make money both online and offline. He has been online since 1999 and has always had a passion for money making opportunities and teaching others how to make a profit.
Why Most Frugality Websites Are Hurting You
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Whether it is the current financial downturn that has caused it or it is a shift in the mentality of the Western world is beyond me, but the fact is that more and more websites and concepts for frugal living is popping up all over.
And even though frugality can be a good thing it is only a part of becoming wealthy and only if you focus on the RIGHT things. From what is currently happening all over I feel that there is a vital part that these websites and concepts are leaving out of the equation.
But let’s first have a look at how Wikipedia defines the strategy and philosophy of “frugality”:
Common strategies of frugality include the reduction of waste, curbing costly habits, suppressing instant gratification by means of fiscal self-restraint, seeking efficiency, avoiding traps, defying expensive social norms, embracing cost-free options, using barter, and staying well-informed about local circumstances and both market and product/service realities.
Frugality in the context of certain belief system is a philosophy in which one does not trust, or is deeply wary of “expert” knowledge, often from commercial markets or corporate cultures, claiming to know what is in the best economic, material, or spiritual interests of the individual.
Different spiritual communities consider frugality to be a virtue or a spiritual discipline. The Religious Society of Friends and the Puritans are examples of such groups. The basic philosophy behind this is the idea that people ought to save money in order to allocate it to more charitable purposes, such as helping others in need.
What is Wrong with Being Frugal
Based on the definition above most of it sounds quite good and I am definitely a believer of giving to charitable causes and helping those that are in need, while at the same time treating your money with respect.
Unfortunately one thing is a “definition” but another thing is what is being “preached” from many frugality websites and other media.
The great majority of them are not spending much time on not always blindly trusting “experts”, trying to help other people and become more efficient, but merely on the “saving” aspect of the philosophy which is only a very small part of it.
Do You Want to Be Less Than You Can Be?
Following the advice of these websites will not have you live the life of your dreams (unless you dream of not having much and not being able to do much). Saving is not the way you become rich, despite what these websites and some authors might try to convince you of.
If all you focus on is “how not to spend”, “how not to get in trouble”, “how not to allow yourself luxuries”, “how not to…..”, then your focus will be very negative and limited and you will never be able to see the many opportunities that are out there for you to grab and run with.
Instead you should focus on “how to find more opportunities”, “how to make more money”, “how to serve more people”, “how to do things in a better and faster way”…. Because that is the philosophy and mindset of most of the people in history that has made it big in terms of both financial wealth and in breakthrough achievements.
Why Part of Frugality is Great
If you take the part of frugality that talks about not spending everything you got on instant gratification items but instead focus on spending and investing your money wisely and combine it with trying to serve others (be it charitable causes or other causes), then you are definitely on your way to a richer life in all aspects.
My advice to you is to not take all of the information from these websites for granted. Not spending more than you make is great but just not spending and only focusing on saving and being scared of every opportunity and possibility that presents itself will have you end up living a life far below your means and for the majority of people this will not be a life with much fulfillment.
Life is supposed to be lived to its fullest and as a human being your potential is literally unlimited. You can become everything you want to be and do as much good for other people as you can possibly imagine. But it will not happen by having a saver’s mentality where you stay at home feeling scared about what might come.
Be wise, learn the things needed and go out and DO IT (like Nike would say).
To Your Success,
Mikael
5 Responses so far
Interesting Reads June 27 2009 | OneMint
June 27th, 2009
8:03 am
[...] Why Most Frugality Websites Are Hurting You by Retire Rich Roadmap [...]
Nicolas Prudhon from SEO Help
June 27th, 2009
11:14 am
Hi Mikael,
This kind of topic is indeed sensitive in many aspects.
My life is now simple, yet I wouldn’t lower my standard just for frugality sake. I worked hard my whole life and accomplished what I did to be able to do and get what I want when I feel like it.
From an economy point of view, in Asia for example, 90% of the wealth is controlled by 10% of people… That may sound harsh and many people want to complain as to how much money is wasted, but the truth is that unless those 10% of people are spending their money so easily, the remaining 90% wouldn’t have any money for living.
So everything is not bad, nor everything is good, it’s called the natural balance of life!
Nicolas Prudhon@SEO Help´s last blog ..Day 19: 21DSM – Outrank Your Competition
Mikael
June 27th, 2009
5:17 pm
Yes it is very sensitive and something that can bring great arguments. Personally I like these arguments but not because I want to “win people over” to my point of view but because I like to hear how “most people” view things.
The fact is that “most people” are the ones that will become my customers and it is them that I will have to provide as much value as I can. If I don’t understand how they see the world I can’t help them to the extend that I want.
As for wealth I think the 90/10 rule applies all over the world and as I see it we’re going toward a 95/5 split and not the other way.
I’m aiming for the 5% by helping and selling to the 95%
Nicolas Prudhon from SEO Help
June 28th, 2009
12:12 am
Hi Mikael,
I feel that where people lack the most honesty is with themselves!
Although most of the people complain as to how money is wasted, I’m sure they would like to be in the 5% rather than the 95%…
I have learned many thing through my life, and 2 points in particular:
1 – You don’t need money to help people.
2 – But you can help more people when you got money than when you don’t.
Nicolas Prudhon@SEO Help´s last blog ..Day 20: 21DSM – Finding Link Partners
Mikael
June 28th, 2009
4:10 am
That is definitely true. I am sure that you would also agree that in order to make money (legally) you will need to help people (provide value). The more you help, the more you’ll be able to make.
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