Nowadays there is so much expense everywhere you look. No shopping trip is complete without a treat, whether it is a new sparkly top or a new handbag. Those people with an adequate budget can afford to splash out occasionally while those that are watching the pennies cannot. However resisting impulse buys and being frugal has many benefits for people on low and high incomes alike. Why buy something if you have no need for it.
The major benefit of leading a frugal lifestyle is that you actually have more money in your purse for the unexpected. Owning your own home, car and having children means that the unexpected is more common than it should be. How many times do you need to find money to fix your car, buy a new washing machine, or a new pair of school trousers? These are all things that a monthly budget does not take account of. If you are frugal and careful where you spend your money you will have money left in your purse at the end of the month to cope with these minor emergencies.
Another major benefit of being frugal is more savings in your bank account. Having money in a high interest fixed rate bank account means it is generating more money for you through interest. More importantly it is tied down and less likely to be spent. Maintaining a large sum of money in your bank accounts is not only pleasing to the eye, but also means that you can use the interest gained for a small treat. If you were to save $5000 in a 3% tax-free interest account you would generate $150 in interest, which could be used for a one night stay in a fancy hotel.
Those people that are frugal in nature have less chance of ending up in debt and using credit cards. Overuse of credit cards can lead to uncontrolled debts and repossession of items including car and furniture. Being frugal and taking care over your purchases is a fantastic way to ensure that you only buy what you need and avoid going into debt.
Finally being frugal means you can save for retirement and have the opportunity to retire younger. If you are frugal and do not overspend you can invest more money into a pension plan and fixed high interest savings account for when you retire. The more money you are able to save the more money you will have to enjoy your retirement. If you are able to reach your retirement savings goal you may be able to retire much younger than you had originally planned.
The benefits of being frugal mean having more money in your bank account for that unexpected emergency or much needed holiday. Being frugal does not mean treats are banned if you budget your money properly. On the whole the benefits of being frugal far outweigh the disadvantages.