While discussing our podcast with our friend Sean, he raised an important concern: Does frugality lead to a scarcity mindset? This made me reflect on the many conversations I've had about the FIRE (Financial Independence Retire Early) movement. Often, people seem immediately turned off by the idea of spending less. Saving money can feel punitive, like a punishment for past mistakes—almost as if we're being put on a spending parole.
Michelle and I explored the healthier, more abundant reasons for saving money, which we discuss in today's podcast. I realized that money is much like health. We exercise and challenge ourselves not out of self-criticism, but because we want future health, function, and mobility. Similarly, saving money isn't about deprivation or punishment—it's about loving and caring for our future selves. Throughout my financial independence journey, I never felt like I was punishing myself. Instead, I felt like I was buying freedom for my future. A scarcity mindset only leads to more scarcity. When I approached frugality with freedom in mind, the experience completely changed. For instance, when I limited my grocery budget to $25 a week, I did so out of love for my future self, who would have the freedom to work less.
There are many positive ways to embrace frugality. Another reason to be frugal is to maintain resilience and flexibility. There are countless conveniences I could buy to make life easier, but I don’t indulge every whim because I like staying adaptable.
For example, when I got ringworm (sorry, TMI!), I wanted to buy a branded yoga towel for my mat. But when I saw how expensive they were, I opted for a $2 towel from Walmart. It does slip, so, in certain poses, I have to fold the towel to maintain my grip. I enjoy the challenge of staying mindful while practicing yoga—of maintaining my flow and grace as I adjust the towel. How seamlessly can I fold the towel when transitioning? I like that I don’t throw money at every minor inconvenience in my life.
How do you think about managing your money? Is it a challenge or a chore? Share your thoughts in the comments below!
Show Notes
Ramit Sethi on money dials: Money Dials: How You Spend & Why (Expert advice on spending)
Happy Money: The Japanese Art of Making Peace with Your Money by Ken Honda
Community Time
Thank you, Sam for your comments on episode 194. Reasons to Track Your Net Worth.
Kat wants to hear more about how to save for your kid’s future. What questions or recommendations do you all have about saving for your kids future? Comment below.
AirHelp: Partner For This Episode
Check out our partner for this episode, AirHelp. AirHelp is a part of the Association of Passenger Rights Advocates (APRA) whose mission is to promote and protect passengers' rights. Click this link if you've had a cancelled or delayed flight as well as support our podcast: AirHelp Affiliate Link
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