Frugalism - many people have no idea what to make of this exotic-sounding term. Contrary to what is often assumed, it is not a new nutrition trend, but a way of life. Numerous people practice frugalism, at least in part, without knowing what it actually is. Every saver is a little bit of a frugalist. Do you bring this Discipline to completion, then you'll enjoy your pension early.
You are probably wondering: What does frugalism mean? What sounds complicated has a simple background. The English term "frugal" means "frugal". Frugalists live so frugally that they live off their savings in the long term and no longer depend on a regular income. They are fulfilling the dream of early retirement.
In practice, this means that frugalists set aside a large part of their income. While the savings rate is statistically around ten percent, frugalists save between 30 and 80 percent. This accumulates assets that they use effectively later. The aim is to leave the working world as early as possible so that they can continue to lead a pleasant and comfortable life afterwards.
Frugalism is particularly important in view of inflation and the uncertain supply situation in retirement. No one knows how long the economic system will continue to function, so it is worth saving and building up a nest egg for existential reasons alone. Those who save also protect themselves for emergencies that occur while they are still working.
Most Frugalists speculate that they will stop working at the age of 40. However, things often turn out differently than expected, because life circumstances can change rapidly due to illness, unemployment or an initially unplanned start to a family. In such a case, the savings serve as a financial hammock.
Frugalism also reduces the Money worriesbecause a certain amount of money always remains as an investment. This creates a Feeling of security. If you're smart, you spread your capital widely and invest in long- and short-term forms of investment. Savings accounts keep the money safe. Shares, precious metals and funds offer the Potential of money multiplication.
That way, you'll be able to live off your equity later:
Frugalists are not ascetics who save every penny from their mouths just to retire earlier. Frugalism is also not the same as minimalism. Minimalists part with all unnecessary things and limit themselves only to the essentials. Frugalists focus on wealth accumulation, which ultimately allows them to live comfortably.
With these frugalism Tips you live economically and comfortably at the same time:
Do you like to eat out? Then look specifically for inexpensive all-you-can-eat restaurants and help yourself from the buffet. Choose more expensive and exclusive dishes that you would otherwise not want to afford.
Do you like to play golf or are you interested in horseback riding? Then take advantage of special offers and promotional weeks and purchase, for example, inexpensive ten-person tickets at the riding stable or take trial lessons on the golf course.
If you want to do something good for your children, enable them to participate in the city's vacation program at a reasonable price. A visit to Freizeitland is also cheaper as part of special promotions. If you visit the swimming pool, then take advantage of the evening tariff.
Do you like to travel? If you're committed to frugalism, you don't have to miss out. Many first-class hotels offer low-cost all-inclusive catering in the early and late seasons. If you book your vacation in a warm country, for example in the south of Spain, you can even swim in the sea in October. Alternatively, you can take advantage of last-minute offers and travel at short notice at a special price.
You are an active rider and wish to have your own horse? Look for a riding share or realize your dream together with another person with whom you share the costs for the horse. Sailing ships and yachts also sit around unused most of the time and are perfect for multiple owners. Are your neighbors or friends also avid campers? Then create a motor home together.
When you live frugally and conserve resources, you kill two birds with one stone. By consuming only what you need, you reduce the use of materials and energy. You help to avoid waste and protect nature. Frugalism is ingenious: you spend less and thus sustainably secure your future and that of the planet.
Use used goods that are in good condition and avoid buying new. The cost savings are particularly noticeable in the case of major purchases, such as a car.
Items that are only used for a short time can usually be rented inexpensively. These include, for example, tools and sports equipment that would be expensive to purchase.
Sometimes it is possible to exchange toys and sports equipment as well as tools and things for everyday use. You can find offers in the classified ad markets. There are also exchange markets for services.
Study the supermarkets' and stores' brochures and specifically buy reduced products. It is often worthwhile to build up stocks.
Toys, clothes and much more often lie unused on shelves and in closets. Clean out your apartment and sell what you no longer need.
You need a new car? Then choose a model that suits your needs and do without unnecessary storage space and various extras. With all purchases, it makes sense to have the right equipment for the right purpose. Additional bells and whistles drive up costs unnecessarily.
You have a garden, terrace or balcony? Then use the space to grow fruits, berries and vegetables. If your garden is large enough and located in the countryside, then you could also think about keeping chickens.
Craftsmen cost money. So do as much as possible yourself. Do you like to wear your hair very short? Then forgo visits to the hairdresser and buy yourself a clipper.
Never buy more than you need and create new meals from your meal leftovers. Also save on detergent, water and electricity. Do you like swimming? Great! Then it's best to shower at the pool and not at home.
If possible, walk or ride your bike. If you use public transport, find out about special offers and always choose the cheapest option.
Many purchases are actually not worth it for a single person. Surfboards, e-bikes, gardens and even cars can be shared.
Frugalism not only gives those who commit to this way of life a deeper sense of purpose, but also security. You know you have a financial cushion to cushion you in times of need. You also have a goal in mind that provides you with many comforts and gives you a happier life.
As a Frugalist, you don't just go about your day living hand-to-mouth. You know exactly what you are working for. You are also more aware of the value of your work. By saving, you critically examine your consumption and learn to question. This makes you more mature and broadens your horizons.
There are several reasons for the growing success of frugalism. For one, many people recognize the value of a free and self-determined life and realize that time is more valuable than material things. After all, you only live once and want to have as much of it as possible. On the other hand, the future is not secure at retirement age because no one can guarantee the stability of the economy.
With a high income, the idea of frugalism is easier to implement. Top earners reach their goal much faster and accordingly retire early. However, with the right savings strategy, it is also possible for low-income earners to fulfill this dream and perhaps enjoy the sweet retirement life five or ten years earlier.
Experience shows that a daily savings amount of around 3.50 euros can be enough to accumulate a considerable fortune. The most important thing is to choose the right investment vehicles, because ideally the money will grow in such a way that it will be enough to live on later. If you need tips, you can find them in our free masterclass.
