Frugality explained in a different way

Not just another article about saving money.

“Cannot people realize how large an income is thrift?” Cicero

The so-called financial experts keep harping about investing. They are often selling an investment product. Surprised?

Even if it was simply an advice, first you must have sufficient capital to invest. As someone who didn’t have capital to invest in the past, I understand this problem.

But let’s suppose you do have capital. What do you suppose would be a good consistent return on any investment? 5 percent? 10 percent? 30 percent?

How about if I told you that you can make over 200 percent of your money? And the best part about it is you can start right now and have complete control over it.

You can do this every time you decide to keep your money in your wallet.

For example, when you decide to not spend $100 on a new jacket, you aren’t simply saving $100 but preventing a debt of another $100. I call it a debt — whether to yourself or your credit card — because you are not only out $100 but you have to somehow replace that $100 somewhere else to get back to where you were.

So the total income swing is actually $200 when you forgo a new jacket and not simply $100, making it a 200 percent return every time you decide to save your money. If there is debt interest, that return is even higher.

Of course you love the jacket. But you now know the price tag is really $200, not $100. Is your love for that jacket worth a 200 percent return on your money? That’s for you to decide.

When someone questions me about my spending, I tell certain people I am broke. The truth is, I would be broke if I spend like that.

The rich may care about how they look to other people. But the rich-rich don’t care to be looked down upon. The rich-rich will freely spend money on their loved ones but for themselves they will forgo comfort. What they care about is keeping a beneficial habit that gives them more wealth and thus more options.