The human beings are different from other living beings due to their emotions and nature as every human being is different when it comes to nature and being frugal is one of the many natures of a human being. The basic idea of being frugal is to save money. Being frugal refers to saving money in every aspect of life whether it is spending money on food, spending money on luxuries or spending money on living and so on. Being frugal is in the nature of an individual and it becomes a habit once an individual grows up and that is the reason why people find it difficult to let go this habit even when they have enough money. In order to understand more about this topic, one should look at the advantages and disadvantages of being frugal –
Advantages of Being Frugal
Habit of Saving Develops
The biggest advantage of being frugal is that one develops the habit of saving money which is very important because the majority of people find it difficult to save money and end up taking too much debt which in turn results in them paying debt and interest their whole life. Saving money is easy to understand but very difficult to implement in your lifestyle and frugal people become masters of this quality giving them an edge over other people when it comes to money management skill.
No Stress of Overshooting the Budget
Another benefit of being frugal is that there is no chance of overshooting the budget as frugal people spend the money keeping all things in mind as opposed to those people who spend money mindlessly and end up overshooting their monthly budget and then, in turn, they have to take money from friends, family or even have to take personal loan from bank or financial institutions.
Planning for the Future
A frugal person who has saved money will not keep that money idle rather he or she will be investing that money which can be a good source of income for the future and can come in handy in times of need or emergency. It is important to know that earning money is not enough rather investing that money so as to benefit from compounding principle of money is far more important if you want to live a good life even when you retire from job or business.
Disadvantages of Being Frugal
Difficult to come out of this Habit
The biggest disadvantage of being frugal is that once this habit develops one will find it very difficult to come out of it even when one has enough money and there is no need for one being frugal. Hence in simple words, if one can draw a line after which one can leave this habit than only it can be considered as good habit otherwise it can be very annoying.
It can be sometimes Embarrassing
Another limitation of being frugal is that sometimes it can be embarrassing for individual as well as family members of the individual because saving money is good but saving it everywhere is not advisable as some situations require an individual to be lenient with regards to spending and if there too you start to save money than it can be very embarrassing situation.
Never know how much is Enough
Money is one thing with which one can never say how much is enough because it may be possible that you have saved enough money but you are still being frugal. Hence one should not find himself or herself in that situation where one has enough money but not enough life to spend that money and live a good life.
As one can see from the pros and cons of being frugal that there are many pros of being frugal but at the same time one should not take this habit to that extent where it becomes extreme and embarrassing both for the individual as well family members of the individual.