Winding Down Friday

Well here we are, another glorious weekend! I”m currently in the midst of packing, gearing up for my move to an apartment much closer to our mutual work places. Personally I”m excited for the change. My rent is going to be lower, we”re going to be using a lot less gas (good thing too, seeing oil prices…), and it”s still a very nice area. I can”t wait to bring in the new savings!

Thinking about this got me thinking about all the recent discussions I”ve read about the difference between frugal and cheap. Personally? I think it”s simply a matter of how bad you want it. If you want to be financially independent as soon as humanly possible, you are going to have to make some sacrifices, that”s pretty clear to most. Some might think you”re crazy, obsessed, or stupid, but if that”s your goal, if you are fixed upon that one thing and pursue it with relentless tenacity, you”ll get there. The road is not easy, but you can obtain financial independence as soon as you”re willing to.

This means tackling issues and putting off events that most are simply not willing to do. The recently wrote about her super-cheap ex boyfriend, stating that she was glad she broke up with him because she “wouldn”t get a wedding.” But if you are dedicated to the goal of financial independence and freedom, are you willing to shell out the X thousand dollars for a ring and XX thousand dollars for a wedding? How far back will that set you from being free? Do you want kids now? Or do you want them a few years down the road, when you are free from your car payments and mortgages and bills?

Which brings me to my my next point, that frugal is in the eye of the beholder. To some, being frugal means not eating out every single day and occasionally skipping a movie on the weekends. To others it means investing and saving at a break-neck pace, carefully plotting your investments, maximizing your returns, and living the good life after a few years of determination and yes, some sacrifice.

The key to it all is being happy now and later. I”m by nature optimistic and cheery, even in the face of some rough times. Just because you are saving and scrimping now does not make you miserable. As soon as it does, stop. I”m not necessarily advocating not having kids or not buying a house or not getting married, I”m saying you should not be so quick to judge those who makes those choices. Accept the fact that they are willing to sacrifice what you are not, and if it works for them, great, because it wouldn”t work for you.

I like to think I”m pretty middle of the road on the frugal spectrum. I go on vacations, I go out to eat, I see movies sometimes, it”s simply properly budgeted out, and I aim for about a 30% savings rate of my income (not including my alternate income, which goes directly to my brokerage account). Still, I”ve been called a “miser” by my siblings, or told “It”s not all about money, you may as well spend it or you won”t be happy.” But I am happy, I”m not living in a shack or my parents basement, I don”t eat ramen noodles every night to save on my food budget (and it would be stupid if you did, the health implications would cost a LOT more).

Find your own balance between frugality and cheap. Don”t feel the need to defend yourself from those that think differently. Focus on your goals, let them worry about their own financial situation, don”t try and press your views on others.

Make sure to have plenty of fun on the journey, the destination will be that much sweeter.

-Xias