By Younas Chaudhary
Growing up in Pakistan I had three shirts and two trousers until age 12, all sewn at home by my mother. In our village, where most kids my age were barefoot and shirtless, this was a luxury.
When we outgrew our clothes as children, they were always gifted to other family members or friends and were never discarded. I saw first-hand how money could be saved in day-to-day life with simple, easy, and practical steps.
Today, I live in one of the priciest neighborhoods, drive very expensive cars, and can afford to buy most anything I want. Still, I make sure to fill up my Rolls Royce at the cheapest gas station in town because I do not like wasting money. Though, I am not your millionaire next door who flaunts his wealth at every opportunity! You can call me a frugal millionaire.
In their best-selling book “The millionaire next door: The surprising secrets of America’s wealthy,” authors Thomas Stanley and William Danko say that “The frugal millionaire next door shuns an extravagant lifestyle and instead practices frugal habits such as living below your means, budgeting, and saving money. There are many frugal rich people because they didn’t get rich through wasteful spending, they got rich by smartly investing their money.”
This is 100% accurate and I have done it in my life. Frugality is a lifestyle of simplicity and consistency. You buy only what you need, and you are resourceful in how you manage your expenses. You avoid impulsive shopping habits and focus on making money work for you rather than the other way around.
For example, at home, I set my thermostats at 75 degrees during summer days to save costs and conserve energy. My pool is rarely drained and is maintained in a cost-effective manner. My water meter readings are checked regularly. There are so many ways to cut costs and most of them are common sense.
The easiest way to financial freedom is to consistently try to increase your income but at the same time reduce your expenses. Consistently save money to try to pay off your home mortgage by age 50. Plan your taxes early in the year, try to preplan to receive maximum deductions and stay on your budget.
Manage your money using a simple, common-sense plan and never overindulge in materialistic possessions. You got to have the consistent mindfulness to live a simple positive lifestyle and you too can easily be a frugal millionaire! Stay blessed.
Disclaimer
The views, thoughts, and opinions expressed in this article are my own and do not represent the opinions of any entity with which I have been, am now, or will be affiliated. Further, I make no warranty regarding the accuracy or effectiveness of my recommendations, and readers are advised to consult other advisors as well as their own judgments in making business decisions.
YBC Foundation 