Personal Finance

5 Benefits of Frugal Living



In a society where consumerism and overspending is the norm, following a frugal lifestyle can sometimes make you seem a like an outcast.

Your friends or family might not understand why you sometimes opt out from expensive restaurant dinners or a night out at the club.

However, if you have been following this lifestyle I am sure you have found more benefits in your frugality than it might seem to others and that they are the ones actually missing out.

Today I will share five things that I find beneficial (apart from saving money) from frugal living.


1. Frugality gives you options and freedom




It would really be really nice if you had the freedom of having money enough money in your bank account to sustain you for a few months in


between switching jobs, moving to another state/country, taking some time off to rest or to study, deciding to travel more or anything your heart desires.


You will not be bound to one type of life when you have the financial power to be able to change it.


2. It is good for the environment

Can you imagine all the environmental health improvement we would have if people would buy less clothing items and would use the public transportation or their bike instead of their cars?

Read my blog post on how to save money on clothes.

Reusing and re-purposing old items instead of throwing them away also means less trash in landfills, dumps, and waterways. Meanwhile, families who buy used items instead of new will inevitably throw away a lot less product packaging over the course of a lifetime.

How about living in smaller spaces instead of enormous 5 bedroom 3 bath house when there are only three or four people in the family?! This saves many resources in both building materials but also energy consumption.

This is not always achievable, but starting with baby steps and reducing their usage would bring life changing effects.


3. Having more time for the things that really matter

Instead of spending the whole Saturday shopping at the mall, for things that you will use maybe a handful of times, you will have the time to take care of yourself, spend time with loved ones or learn a new skill or practice a new hobby.

Working two jobs just to live paycheck to paycheck because of overspending will consume most of your time and will make you feel exhausted and unfulfilled.


4. Being frugal can be less stressful

Imagine what it would be like to never worry about money again. What would it feel like to have a healthy nest egg in the bank, no debts, and a rock-solid plan for an early retirement?

A lot of people have achieved that exact feeling — and without working as CEOs, day traders, or plastic surgeons first. And many of those people will tell you that the key to their lifestyle is, and always has been, living below their means and investing the rest. Sounds easy, doesn’t it?

By living within your means you also don’t need to take a second and third job, giving you more time to rest, exercise, sleep, follow a hobby, prepare meals at home etc.

All of these things make for a more relaxed life and will help you relieve stress.


5. Retiring Early

I know, I know! You think you are too young to have to worry about when you will retire but you will be shocked to realize how many people have to work up until their 60s and 70s because they didn’t put money aside to invest it in a retirement plan or in any other way.

The more you put aside and the sooner you start, the more money you will have to use then when you will retire. Furthermore, if you are really good at it maybe you will realize that you will not have to work until you are 60 in order to retire.

For example, let’s take individual A and B, that are both 30 and let’s assume they have an average annual net income of $50,000 and that it will remain so in the next 25 years.

For the next 25 years individual A puts aside 10% of their income and invests it in a 401k or whatever retirement plan you have in your country.

With a compound interest of let’s say 5%, at the end of the 25 years they would have set aside a little bit over $255,000.

Now let’s take individual B, who lives frugally and well below their means and puts aside 30% of their income.

Calculating it with the same compound interest as earlier, the individual B, at the end of 25 years will have set aside about $766,000.

Not only this, but being used to living with only 30% of their income they will have no trouble at all during their retirement and the money they set aside will be enough for them.


Did you enjoy these benefits of frugal living? Had you experienced any of them? I would like to know from you maybe a drawback of living within ones means.


Don’t forget to sign up to my email list in order to receive a template of a Budgeting Spreadsheet and a list of 101 Ways to Save money.



  • Jan Zac

    Hello ,

    I saw your tweets and thought I will check your website. Have to say it looks very good!
    I’m also interested in this topic and have recently started my journey as young entrepreneur.

    I’m also looking for the ways on how to promote my website. I have tried AdSense and Facebok Ads, however it is getting very expensive. Was thinking about starting using analytics. Do you recommend it?
    Can you recommend something what works best for you?

    I also want to improve SEO of my website. Would appreciate, if you can have a quick look at my website and give me an advice what I should improve:
    (Recently I have added a new page about FutureNet and the way how users can make money on this social networking portal.)

    I have subscribed to your newsletter. 🙂

    Hope to hear from you soon.

    Maybe I will add link to your website on my website and you will add link to my website on your website? It will improve SEO of our websites, right? What do you think?

    Jan Zac

    • Livia

      Hi, Jan! Thank you for taking the time to read my blog posts. It is pretty difficult to promote our blogs, isn’t it? I am using mainly Pinterest and Facebook groups as I am not much of a SEO genius.

      I recently went self hosted so I managed to install some plugins, because on it wasn’t possible. Yoast plugin helps with writing a post that is SEO friendly. I also use social warfare for social media sharing buttons.

      I will check out your blog and will reference it on my next post.

      Take care. xoxo 🙂

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