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"The Balance Between Living Frugal and Building Wealth"
First, in order to establish how “dangerous” frugality can be, we have to define the word frugal.
The Free Dictionary
1. Practicing economy; living without waste; thrifty
You see, frugality doesn't necessarily mean penny-pinching, budgeting or finding whatever means possible to save a buck. Basically, being frugal just means being smart with your money as opposed to being frivolous. And those two things are not the same. Being smart is never a bad thing. As a matter of fact, if you want to achieve wealth, frugality is a must. Being foolish with your money is just plain foolish because a fool and his money will always part!
So then, why are we talking about the danger of frugality? What could possibly be dangerous about being smart with your money? Well, consider this. Frugality to your finances is like water to your health. Drinking water can greatly improve your health. Drinking it is NECESSARY for your health. You can't live without it. But if you drink too much of it, it will kill you!
You see, frugality is a beautiful and necessary thing. But it can be addictive (even to the point of being unreasonable), and if you overdo it, it can kill your finances. With that being said, I realize that this does not describe most people, but it has to be addressed because it can be a road block for a person reaching wealth.
If you remember, a while back I did an article called Don't Do A Budget. One of the main primacies of this article was that "budgets" focus on "lack" and when you focus on lack, you only get more of it. So I suggested a wealth plan instead. This same concept “focusing on lack” can apply to being frugal.
If you've ever bought a bottle of caffeine pills you will know that it says on the label, "This should not be used as a substitute for sleep!" Frugality should also have a label on it. It should say, "This is NOT to be used as a substitute for building wealth!"
Let's say that your electric bill is very high. Well, there are two ways to deal with this. You can learn how to lower your heating costs... or you can just BECOME WEALTHIER and not have to worry about the cost of the electric bill! Now of course, no matter how wealthy you are, you should never be spending ridiculous amounts of money on anything that you don't have to, but spending 100 percent of your time trying to figure out how to save money and zero percent trying to figure out how to make some is just as ridiculous.
We have to be balanced in our approach. There are people out there who live alone, make plenty of money and can barely keep their lights on. They make more than most people yet struggle more than most. These types of people will never be wealthy because whatever money they make they spend it all. There is another breed of people who have gotten PhD’s in frugality and never once considered how to attract more wealth. They will never be wealthy either! At the end of the day, you have to make money to be wealthy.
Usually when you ask a rich person, how did you do it? They will tell you something like, "I followed my dreams and I never gave up and I eventually made it BIG" or "I came across a great idea (something like an invention) and I struck gold and made it BIG." It will normally have to do with making it big. Very rarely will you hear a success story of somebody who used space heaters, portable air conditioners, put solar camping blankets on the windows, put heated rice bags in their beds to warm them up at night, turned down the heat and cut their expenses SO much, that they saved enough money to become filthy, stinking rich.
By the way, why is it when somebody has a lot of money their condition is associated with Filth and Stink? Is it true that you can't become wealthy without doing "dirt" or is there a faction of people who want you to believe that so you will stay in your box and never strive for greatness? Just a question.
Anyway, let's get back to the subject. Once again, we have to remain BALANCED in our way of thinking. There has to be a happy medium between building wealth and preserving wealth. Too much focus on either of these things can ultimately lead to financial ruin. You see, I'm not asking you to be a Nicholas Cage. Obviously no matter what you make or attract, as far as money is concerned, is null and void if you don't have the wisdom to keep it. But I don't want you to spend years getting a B.A., a Master's Degree and a Doctorate in stretching a dollar either, or you may become penny wise and pound foolish.
Did you make any resolutions this year that were related to finance? If so, were they based on saving money, or MAKING money? Saving money is a beautiful thing. Being "prudent" is a beautiful thing. But these things are no match for WEALTH BUILDING. So what are your plans for building wealth? Do you have any? You may want to get some. But how can you do this?
Take some time and think. Do some soul searching. Make an inventory of your current wealth (talents). What are you good at? What do you do well and what do you love to do (so much that you would do it free)? These questions can lead you to your purpose in life. Then of course you will want to act on this. You see, when you are living out your destiny, you are already living in abundance. This will eventually lead to it manifesting for you in the physical realm! Your inner wealth will eventually lead to your outer wealth. And THIS is your goal in the end.
Listen to Stephen Pierce talks about some of the keys to becoming wealthy in whatever path you choose to take.
Hope this has helped.
So until next time,
Free Your Mind... Online,
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