Do you earn a comfortable salary? If yes, then yay! Life’s good. But even a Warren Buffet or a Jeff Bezos still knows the value of being thrifty. It is a sure way of staying worried and stress-free, regardless of the financial crises that might take you unawares in the future.
Advantages of thriftiness
You must understand that “thrifty” is not the same as “stingy.” No, It’s something entirely different, and even more so, should be sought after.
On the one hand, the word, ‘stingy’ means being miserly, refusing to make your life easier and hoarding the resources you possess.
[READ MORE: How young Nigerians are investing to leave the country]
However, to be thrifty entails managing your money habits and learning to save. This could include:
- spending less on non-essentials;
- getting a better value at a low cost;
- avoiding borrowing to satisfy leisure purposes (such as buying a car, funding an extravagant wedding, going on pleasure trips, etc.); and
- borrowing only when in dire need or for investment purposes, and so on.
Without much ado, let’s get right to the benefits:
You become resourceful
You develop a keen sense for accomplishing more with less – a useful trait in any individual, be it, man or woman.
In a world of hardship and increasing scarcity, we all must learn to value what we have and use them wisely.
As the saying goes, “He who spends his money carelessly tends not to have it for long.”
You understand what matters and what doesn’t
Oftentimes, we might get carried away by what our peers are doing and try to mirror these trends.
However, don’t forget to cut your coat according to your cloth. Bother less about impressing your friends, and don’t allow yourself to be swayed into purchasing things you don’t really need (which may even cost you more money in the long run).
Practising thriftiness enables you to live within your means. You analyse your lifestyle and measure your spending habits to suit your earnings.
You give priority to more important things like taking care of your family, living a comfortable life, and investing for your future.
[READ ALSO: What to do when your expenses are more than your income]
You are more prepared in times of emergency
Spending wisely means you will have something to fall back on in case of an emergency. If you always empty your account and live from paycheck to paycheck due to bad money habits, you will find yourself in a sticky situation should you lose your job or face some other unforeseen event.
You have a happier relationship with your spouse
Money problems are some of the top causes of marital strains. Therefore, being financially responsible makes you better able to cater for your family and prevent getting into squabbles with your spouse.
You Worry Less About Incurring Debt
Spending wisely implies that you won’t face the unpleasant situation of borrowing to cater to your basic needs. You sleep better at night knowing Mr Ade won’t come banging on your door come morning, demanding you pay him back.
You invest more
Being thrifty helps you increase your savings, which you can then use to make profitable investments. You, therefore, get closer to achieving financial freedom and retiring early.
You become more disciplined
Managing money wisely makes you a better person all round. You may ask how. Here are a few ways:
- You take better care of your health, since you know falling sick will cost you.
- You feed better by cooking your own meals rather than eating out.
- You maintain your personal belongings, including cars, work tools, clothes, etc., and ensure they last longer.
- You keep your living space tidy by not accumulating clutter – You purchase only the things you need, and sell or give away items you no longer use.
- You are able to pay off your debts promptly and give yourself a good reputation.
[READ FURTHER: 5 post-retirement ideas you should share with your parents]
Conclusion
Being thrifty means you use your money and resources wisely. It ensures you don’t live from paycheck to paycheck and that you have something to fall back on during a rainy day.
By growing your savings, you can have a comfortable life, whilst working towards financial freedom and early retirement.
