2Mon
Personally, I would see myself as a frugalist to a certain extent. But I have the feeling that there are often misconceptions.
I check before every purchase decision: will the product/service make me happier or more satisfied, will it take work off my hands?
If I can answer yes to one of these questions, I'm happy to put the money on the table. My bike, for example, cost about a month's salary. It was worth it to me and I would do it again. My winter jacket cost me €300 when I was at university in 2013. That was 1/3 of my monthly salary at the time. I still have the jacket because I like it so much. I have two very warm jackets in total. I don't need any more because otherwise they are more of a nuisance than a benefit.
Frugalism - as I interpret it - is my personal key to happiness (together with my wife (neither a frugalist nor a minimalist)).
I spend what is necessary on the things that are worth a lot to me. If my life is satisfying for me, I don't spend more just because I have more available.
My savings rate is what's left over. Of course, the savings rate and savings ratio fluctuate depending on salary/income. Since graduating, my savings rate has been between 50 and 75%, and is currently at the lower end again. If costs rise or income falls, I wouldn't necessarily change anything. Just as I wouldn't change my costs if my income increased.
Unless I really want something that I simply couldn't afford before.
However, as I don't have a penchant for extremely expensive things (watches for five-figure sums, cars for six-figure sums, etc.), this is relatively unlikely for me.
I check before every purchase decision: will the product/service make me happier or more satisfied, will it take work off my hands?
If I can answer yes to one of these questions, I'm happy to put the money on the table. My bike, for example, cost about a month's salary. It was worth it to me and I would do it again. My winter jacket cost me €300 when I was at university in 2013. That was 1/3 of my monthly salary at the time. I still have the jacket because I like it so much. I have two very warm jackets in total. I don't need any more because otherwise they are more of a nuisance than a benefit.
Frugalism - as I interpret it - is my personal key to happiness (together with my wife (neither a frugalist nor a minimalist)).
I spend what is necessary on the things that are worth a lot to me. If my life is satisfying for me, I don't spend more just because I have more available.
My savings rate is what's left over. Of course, the savings rate and savings ratio fluctuate depending on salary/income. Since graduating, my savings rate has been between 50 and 75%, and is currently at the lower end again. If costs rise or income falls, I wouldn't necessarily change anything. Just as I wouldn't change my costs if my income increased.
Unless I really want something that I simply couldn't afford before.
However, as I don't have a penchant for extremely expensive things (watches for five-figure sums, cars for six-figure sums, etc.), this is relatively unlikely for me.
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2Mon
@KevinE That's a good point. I always ask myself similar questions before making purchases. "Do I absolutely need this?" All too often the answer is no 😁
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