Many may think that seeking early retirement by frugal living is childish, but we vouch for your thought – it is indeed possible. You must be careful about how you plan and execute the idea!
Not everyone wishes to work until their late 60s. Some people wish to spend some years with their children before they become adults or want to fulfill dreams that would otherwise be left unattended. You can either choose your work to dictate your decisions. Alternatively, you can dictate your work. The choice is yours.
This idea would not have been so arduous if your family had a healthy regular income. However, being on a frugal income, do you get the luxury to time to time your retirement? Well, the short answer is YES and read on further to know how it is tenable.
What is ‘Frugal’ Living?
I have learned to seek my happiness by limiting my desires, rather than in attempting to satisfy them. The term ‘frugal’ living is highly subjective and varies from person to person. In simple terms, it elucidates the situation where you limit your current expenses to save a bit more for the future.
Frugal living also depends on other variables, like your location, the cost of living, your expenses as well as other ancillaries too. Let me explain with an example –
If you live in India and earn Rupees 70,000 per month, you will be considered to be well off, but when in the USA, it roughly translates to $1000. If you are asked to live on such an income, you will be perplexed and will have to plan your living well to be able to sustain.
How to Manage Yourself Frugally?
Spending in a Smarter Manner
If you want to manage yourself frugally, you must spend smartly and stretch the money to the last strand. You have got to find the best deals for your purchases, be it discounts or refurbished products. Inculcate the habit of shopping during discounting seasons to save some extra cash. Find coupons for your grocery shopping and buy in bulk when you get good deals.
Smarter spending also means delaying your purchases whenever feasible and giving more importance to the important ones. It means that the salesperson’s tactics to try and sell additional products will fall flat on the face when it comes to you.
If you want to live frugally, you must know how to reuse. Without this trick, you will never be able to ace frugality. It means repairing your torn jeans to be able to use it for some more months and also using grocery bags instead of trash bags. The list of reusability is endless, and you need to think smartly to find the opportunity to reuse. Moreover, if you cannot find it yourself, take inspiration from Indian Jugaad. They can reuse every single thing that you may consider waste.
Smarter Money Management to Achieve Frugal Living
Frugal living goes hand in hand with smarter money management. You must have a monthly budget which appropriately allocates funds for various expenses throughout the month. Budgeting your incomes and costs is imperative for your family to achieve the targets set. It also helps us understand where we stand and the areas where we can still save to achieve higher efficiency.
Even if you save money, it may well fall short as the real value of cash follows a falling curve. If you want to negate it, you must invest. If you think that your funds are insufficient for you to commence the same, read our article on how to start investing with limited funds.
Try to get rid of Debt and Credit Cards
Debts create a constant interest liability on our head, and that can have a terrible impact on our funds’ availability. If you try to get rid of debt, it will ensure that you no longer have to bear interest and you can utilize that money more efficiently.
Credit cards force us to spend more than what we have. It can bring our growth to a standstill. If credit cards are not an essential part of your day-to-day life, we suggest you get rid of them at the earliest.
What will you miss out on if you choose Frugal Living?
Like every other decision, trying to adopt frugal living is not all rosy. There will be things that you will miss out on, but the sacrifice is worth it in the long run. Here are a few things that you will have to give up or curtail to achieve your purpose –
Less Time with your Dear Ones
Frugal Living demands working overtime to earn more. It will make you miss out some beautiful moments with your family. All you can do is to vow to embrace more of such auspicious moments when the right time arrives.
If you love to travel, it will be difficult for you to live with less traveling. It is a significant part of our outflow, and we must give up on it. If you work and dwelling are not in the same city, there are chances that you will be able to travel back fewer times than you usually did beforehand.
Impact on Mental as well as Physical Health
Frugal living can take its toll on your mental as well as physical health. You are continually working more and taking pressure more than required. It can be excellent for a limited time but not over a period of time, and you can see danger signs if you stretch yourself.
Society will Murmur
Frugal living can make you look out of place. Even if you go out and explain what you are trying to achieve, there will be lips that will murmur and ears that will listen. The best you can do is ignore them and continue your vigil till you get what you need.
The Sum Up
Planning early retirement by frugal living looks good in books, but not so when in practice. There will be times when you will want to give up. At times it may make you feel helpless but trust us, the grind is worth it.
When you plant a tree, it never gives you apples the very next day; we have to nurture it well over a long period to see it bearing fruits. Nothing comes easy in life, and the ability of you to live frugally today to achieve early retirement is a testament to it. Work hard; success will follow suit!