Abundance or Frugality: Which is Better?
There have been some trends in the last few years that are really fascinating. One big one is the book and movie The Secret. The idea that we can create anything we want is becoming more and more popular. In addition, the concept that money and everything else we could ever want is available in infinite abundance is very appealing.
Another trend that is very prominent in blogs is the practice of frugality and living below our means. For many of the blogs I read, it seems that the most popular posts are about how to save money. Here’s a recent one that was very well read about how to make your own laundry detergent. The cost savings? If you do 1 load a week, 16 cents. That begs an important question:
Is 16 cents really going to make a difference in anyone’s life?
Although I am not a big fan of saving small amounts of money, there is at least one big benefit to making our own laundry detergent. It changes the way we think. If we work hard to save 16 cents, they we will probably think long and hard about buying that latte for $3, spending $600 for an iPhone or wasting $50 per month on cell phone service. They say it’s not the amount that’s important, it’s the habit.
Here’s another perspective. If we are going to work hard to save a small amount of money, are we going to work hard to make a small amount of money? One of the neat things we have noticed on our blog is that virtually every single person who posts a positive or interesting comment has a blog. And, many of them monetize their blog through advertising. Are they making $10,000 a month on their blog?
I doubt it. But they are making some money. It’s probably enough to cover their hosting expenses. And there is money left over for lattes as well. It may not be a large amount of money. But if it’s the habit that is important, then it is pretty awesome.
Here’s another popular blog post I found about unusual ways of making money. Most of these ways will generate small amounts of money. But who knows? There is no reason they couldn’t lead to large passive incomes.
Personally, I think it’s much better to focus our energies on finding ways of making money rather than finding ways of saving money. But that’s just an opinion. There are many wealthy and successful people who might say the opposite…
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
I don’t think one is better than the other. They’re each valid approaches to the same goal: financial freedom.
They person who needs less gains freedom over his or her financial picture; so does the person that taps abundance.
What I think is wrong is when people lord their financial views on others. The rich guy who looks down on the person who lives frugally is no better than the fru-gals and fru-guys looking down on someone who has mastered the art of wealth creation.
I always give the same answer with regard to the, “is saving that much really worth it” question.
“A journey of a thousand miles begins with one step.” – Lao Tzu
Like you said, the biggest difference is the change in mindset.
One should always consider opportunity cost when deciding on whether or not to employ a money saving tip. Another thing to consider is the freedom one gains when he creates his own products. It may not be appealing or even make sense to some, but for me, and independent and self-reliant life is paramount, and it takes baby steps to get there.
@Matt Jabs
Hi Matt Jabs,
Yes, I agree. If we consider that each step is part of a journey, then it’s probably worth it.
George