Without frugality, none can be rich...
"Frugality is so necessary to the happiness of the world, so beneficial in its various forms to every rank of man, from the highest of human potentates to the lowest laborer, and the miseries the neglect of it produces are so numerous and so grievous that it ought to be recommended for every variation of address and adapted to every class of understanding.
He that is extravagant will quickly become poor...without frugality none can be rich, and with it, very few would be poor."
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I'd add that poverty and wealth are a bit more complicated than this (some people are wealthy despite lavish spending and some people are poor even though they spend little), but his general point is well-taken...even on a large income, it's quite possible to spend beyond one's means, and by the same token, it is often possible to live beneath one's means even on a small income.
In other words, a lack of careful spending can make you poor even if you earn a lot of money, while frugal habits can keep you from a state of poverty even if you don't earn a lot of money.
(This has certainly been the case with Mr. FG and myself. Our lack of indebtedness has not been because of years of high income but because of a commitment to live within our means.)
I think we tend to look at frugality as something that we only need to bother with when we have low income, but consider how many people, past and present, have ended up in a state of financial ruin despite their unimaginably high incomes.
Income is only part of the picture, and I'd venture to say that how much income you have is far less important that how you handle that income.
Great post! We try to live by these words, "It's not how much you make, it's how much you save."
I've noticed that those who have the least frequently (not always) are the most generous with sharing their resources with others.
I've noticed the same!
Actually, it's true statistically. The middle class gives a larger percentage of their income to charity than wealthy folks! (or at least this was the case a few years back when I worked in nonprofit fundraising)
Love it! So well said. I love the quote from Samuel Johnson.
There's also a saying that while you can spend yourself poor, you can't save yourself rich. Thoughts?
I'd agree...it's pretty hard to amass large quantities of money on a low income no matter how frugal you are. At the very least, it's really, really slow going.
We've lived frugally pretty much our whole married life, but when Mr. FG switched from warehousing to IT, our savings account grew way faster than it ever had. Since we were used to living on less, we were in a very good position to save a lot of the newfound income rather than spending it all away!
Agree. It brings to mind too one of the things that bother me about a lot of blogs out there - people spending hours couponing, taking surveys, etc and effectively making a few dollars on the hour for the work. No, it's not possible for everyone to go out and get another job, especially with little ones. But seriously, all the effort to save a few dollars when a part-time gig is so much more fruitful?
To clarify, I'm not against those things (I coupon and do other things), just when you do the math and per hour you're making so little.
Anyways, off topic, but this just made me think of that! 🙂
Hmmm... well, it might depend on your definition of rich. My parents never made more than $50K/year, but now entering their 80's they have a net worth of nearly $2 million. They are among the most frugal people I know.
I just finished reading The Millionaire Next Door, which deals a lot with this idea that wealth is related to spending habits (especially the lack of spending). It's an older book now, but it really talks about how two people with similar incomes can have wildly different lifestyles and wildly different amounts of wealth. People in so-called "high-status" jobs like lawyers and financial advisers may be spending every penny they have trying to keep up with the Joneses and *look* rich, while the guy who owns an HVAC business doesn't have the same lifestyle expectations, and he's the one actually *getting* rich.
Lovely, thank you!
This is so true. As a volunteer financial coach, I've noticed that about half the people I meet with are making very good money, and they still have a problem with debt.
Volunteer financial coach, how neat! Where do you do that?
My church offers this service. I think it's one of the best things we do. Well. Besides bringing people to Jesus. It's NewSpring Church, and we have several campuses all over South Carolina. Your church should start this ministry, too. 🙂
We are about 2 months away from being debt-free apart from our Mortgage. I am so pleased and I am so determined to never get in a hole again. And it wasn't even that much, under €5K, but it was enough that I was anxious all the time.
Well said!
Thank you for sharing this. Sometimes I struggle with how little we have compared to family members in similar financial situations. That is my issue of having to much pride. However, I have to remind myself we don't have the stress of debt and living paycheck to paycheck because we are more frugal. Someday we'll have more, without all the debt, thanks to saving today, but for now I need to be content with what the Lord has given me.
Our government's lack of frugality is causing us some major concern nowadays.
I recently read a book called The Working Life: The Promise and Betrayal of Modern Work (Joanne B. Ciulla, 2000). It's an interesting analysis of the history of work in Western culture from classical times until now, especially our attitudes toward work and leisure (which today seems to more consumption than leisure). One part that struck me was her analysis of early Christians, who were concerned about working for pay. They felt that while pay could be used for good things, many people were seduced into earning more than they needed and consequentially hoarding more material things than they needed to the detriment of their community. Recently in a Bible class, we discussed the story of the manna as an example of this tendency of human nature. While I don't plan to stop saving for retirement (I consider that a future need), I am trying to think carefully about what unthinking trade-offs I might making when purchasing things. One the one hand, when I buy my cup of coffee from a local deli I am supporting my community, but on the other I am taking away money my family needs to pay down debts and from what I can contribute at my church community. Not to agonize over every choice but to be thoughtful of spending in a community context.
In my opinion, rich is different for everyone. Personally, rich to me is not having all the material things but to have time...time to spend and do as you please or whomever you please. This goal is what drives my family and I to live frugally in order to save and invest more thus achieve financial independence as quickly as possible.
Interesting point and one I struggle with. How much is enough? How do I decide how much is enough for me? Based on family history and lifestyle, I expect to live a long time and there's a nontrivial chance I might get cancer. Those two things alone add up to a lot of future needs. So how much do I need to save so I don't die in penury and poorly-cared for?
If only we could know how long we'll live...but the downsides of knowing that would completely outweigh the upsides, I think!