Frugal Living Doesn't Mean Being Stingy: Why Are There Levels of Frugality?

Berlin (Frugal Shopping House) – The Levels of Frugal Living: Why "Thrifty" Looks Different for Everyone

The term frugal living is often misunderstood as a lifestyle of deprivation or being "anti-brand." In reality, the essence of frugal living is conscious spending. Since everyone’s financial situation is different, the standard for being "frugal" cannot be generalized. What is considered extravagant for one person might be a sensible, frugal choice for another.

Here is why a frugal lifestyle has different levels based on financial profiles:

1. The "Value for Money" Level (High Income)

For those with an income above Rp50 million per month, buying a pair of Nike shoes for Rp2 million can still fall into the frugal category. Why? Because they prioritize durability and function.

Rather than buying unbranded shoes for Rp200,000 that break within three months, they choose to invest in quality that lasts for years. At this level, being frugal means "buying it once, buying it well" to avoid repetitive purchases. Since such an expense only consumes a small fraction of their income, it does not disrupt their financial stability.

2. The "Priority-Based" Level (Middle Income)

For individuals with a salary below Rp20 million, buying international branded shoes might not be a wise move if the goal is frugal living. At this level, the primary focus is the scale of priorities.

An amount of Rp2 million might be more meaningful if allocated toward an emergency fund, mutual fund investments, or insurance. Frugality at this level means practicing delayed gratification for long-term financial security. Buying high-quality local products at a third of the price of international brands is a form of real efficiency.

3. The "Survival & Basic" Level (Minimum Wage)

At this level, frugality is no longer a strategic choice but a necessity for survival. The focus is on cutting variable costs, such as food and transportation. Every cent is carefully calculated to cover basic needs.

Conclusion: Cut Your Coat According to Your Cloth

Healthy frugal living is that which does not cause mental distress and aligns with your financial reality. Do not get trapped in the frugal trends of others whose economic levels are different.

A pair of Nike shoes might be a symbol of thriftiness for the wealthy due to its longevity, but it can be a symbol of wastefulness for those with limited savings. The key to being frugal is not how cheap the items you buy are, but how much of your remaining income you can save after meeting your life's needs with reasonable quality.

Have you determined which level of frugality fits your current standard?

Labels: Frugal Shopping House

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