Benefits of Frugal Living for a Bright Future

Frugality is one way to achieve financial independence in the future. By frugality you can determine your goals in managing money. Saving doesn't mean you can't spend money at all. However, expenses are controlled as needed, so that the money you have can be channeled more optimally.

Lifestyle is certainly a major challenge when saving, if you are used to spending money on consumptive things, you will regret this habit later on. There are so many benefits of frugal living that you can feel, to achieve this let's find out there are at least 3 benefits of frugal living that are useful for you.

Starting a frugal lifestyle will help you understand your priorities. You will be able to sort and choose what you have to spend first compared to other needs. Remember, not everything you write is a priority. There must be one of these items that takes priority.

In determining priorities, you need to look at several aspects such as:

1) How important the item is to purchase

2) What is the impact if the item is not purchased immediately

3) Is there an alternative to the item.

If the item is very important, so that it will be fatal if it is not purchased immediately and there are no other alternatives, then the item must be the most prioritized.

Of course education is the most important part for children. If it is not prepared immediately, the impact will be harmful to the child's intelligence, and this also has no alternative. So it can be concluded that children's education is something that you should make a top priority.

No one can predict the future, especially financial conditions. But we can anticipate it by starting to adopt a frugal lifestyle. Have a minimum savings with a minimum expenditure of 3 months so that the future is safer.

3 months is not an absolute number, it can be adjusted to your condition. If you are a person with a fixed salary then 3 months can be a reference. However, if you have an irregular income, such as a freelancer or self-employed person, then you can use an emergency fund with a minimum of 6-12 months of spending.

Of course, that's all you can achieve if you start living frugally. If you don't get into the habit of saving, the money you should be able to save will simply run out.

There are many causes of stress, one of which is financial problems. When a friend wants to buy something you need but you don't have the money right now, it can be very stressful. A study at Northwestern Mutual found that money was the top cause of stress, the rest being love and work.

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