This is a totally valid question from a reader in response to my post about going back to work but with a lighter heart.
FB, if you are making so much money, why are you so frugal?
Those weren’t her exact words, but … it’s a good point.
I’d never really given it thought, but I guess I’ll try my best to answer.
It has become a habit now
I’ve just been so concentrated on being disciplined to clear my debt and save, that even with all the money I am making now, I am still in the same mindset to be frugal and to keep the money I’m making instead of spending it as freely as I did before, when I didn’t make as much.
It’s not a regular salary
I’ll spare going into the details again, but I’m essentially a freelancer. There are fat years and there are lean years. I need to save for the lean years.
I want to be more of a minimalist
I can’t really be one if I keep buying stuff, now can I? I am planning on moving soon and the more I accumulate, the more I have to pack and carry to move. Ick.
I also just feel (now) that I don’t need a lot. I’d like less actually.
Increasing my net worth is a real motivator
I really want to just see my net worth shoot up into the sky. And this sky, has no limit. I want to see myself hit $100,000 as soon as possible, and to just feel proud of what I’ve accomplished.
I thought that getting to $0 as my net worth instead of being so deep in the negative would be more exciting than what it was, but it was a bit anti-climatic to be honest! Hhahaha! I was pretty excited, but it didn’t feel like a real $0 net worth because a lot of it was my assets, and I still had a good chunk of debt left over.
I just hope I don’t go crazy and overdo it and become some sort of Miss Scroogette.
I want to feel safe
Having a lot of cash in the bank as my emergency fund, in savings and in retirement will make me feel ‘safe’. I will feel even freer than before (actually I feel it now), but it will make me feel secure and prepared for the future.
I plan on having kids in about 3 years
So when I have kids, I may or may not be with a corporation and I may or may not have maternity leave. If I have to take off at half my pay, I want to have a cushion to make sure that I can take the time I need to be with my kids without having to worry about being forced to go back to work too soon before I’m ready. This sounds like a really long-term kind of thing, but it is something I need to consider.
I like being financially independent
I’ve gotten a taste of it and I love it now!!!
I feel that every woman should be financially independent (even if they love their significant others very much and will grow old together until the end of time) because it gives you a real boost in your confidence, self esteem and security.
I’ve seen what it can do to women who have no idea what is happening to their finances, and then their spouse leaves, dies or just ends up screwing up things and screwing up their lives as a family, causing turmoil. Then the fights begin…
I didn’t know you invested ALL our money in the stock market!
Well YOU didn’t want to help out with anything so I had to do it all on my own!!
And so on.
Plus, being financially savvy and independent, is a real sexy turn on for other spouses (especially my BF) because they don’t feel like Atlas as though they have to hold the whole financial burden on their shoulders.
Even if I make extra money now….
It doesn’t mean I need more money to live.
I don’t need to spend it all to be comfortable. I can be pretty comfortable at $1500 or even $2000 maximum a month. But just because I make more money, doesn’t mean I need to increase my lifestyle.
Besides, I like being the way I am right now. If I ever drop down to making $30,000 a year, I can still be happy and comfortable as if I’m making $200,000 a year. To me, the expenses are fixed, I am still being frugal (as a habit) and the extra money is just a bonus to save for the lean years.
Does that make sense?
Even though I have more money now than I could’ve ever imagined in my wildest dreams making at such a young age in such a short amount of time, I am happy I am wise enough to learn how to manage it well (but also not to deprive myself and to enjoy life within my means).
But you all know I have a weakness for shopping, so I am not a saint (far from it!) and I will definitely be splurging and impulse buying for the rest of my life, but in a more moderate amount.
Any and every PF (Personal Finance) blogger will say:
Once you upgrade your salary, don’t think you have to immediately upgrade your lifestyle; just save the rest into an account.
You won’t even miss it.
It’s so true.
Just a girl trying to find a balance between being a Shopaholic and a Saver.
I cleared $60,000 in 18 months earning $65,000 gross/year.
Now I am self-employed, and you can read more about 
I agree! Hubby and I are about to double our current income but we have so many goals and we don’t wantt o waste the opportunity. Imagine if three years down the track we couldn’t downsize because we’d managed to spend everything we’d made! And them some ..
It starts to become a habit to be frugal and having some security becomes more important. Congrats on a great post!
sammy: that’s true. BF is like that. Hence why he probably has a ton socked away
Anon: Buffet is one of my heroes! And one of the guys I’m reading a bio about right now
LAL: Yep, we’re thinking about that too, but I guess we’ll run the numbers once we see them. Buying in Dallas would be v. cheap though. $2000 a month as a mortgage is probably not going to be what we’re paying. We’re aiming for less.. like maybe $1500?
I dunno
high-heeled: I got lots of posts! Right sidebar, dear 🙂
Revanche: Yes, I say that, then I spend money on necklaces LOL!!
brokebettie: I try to. BUt I don’t want to be a hardcore frugal PF’er, so I DO spend once in a while
michelle: Yes! Agreed
Lys: Thanks 🙂
Louise: The lean times are what will get me.
Auburn: It’s nice and freeing
I’m with you…I love feeling financially independent too!
I think I am even more frugal now that I’m earning more and we are living on the tightest budget we’ve ever been on since I started blogging. I also agree about setting aside for the lean times after having a couple of days off sick cost me a packet!
Fabulous Post!!!
What most people don’t realize is that rich people are rich because they are frugal and hardworking (for the most part, I’m not talking about people who were born into money or celebrities).
Hubby worked as a plumber for a little bit, so he got to see peoples bathrooms and kitchens. And he found that the rich people would buy the cheapest stuff – off brands and bulk items from the warehouse store. Rich people have a lot of money, and they intend to keep it that way.
I’m with you on all of these points – it’s nice to know I’m not alone in thinking this way!
Very important points! After all, what was the point of going through all the mess, trouble, and effort only to let yourself lapse back into old habits and spend up a storm instead of making real progress?
And remember, wealthy people plan for generations, so planning for when you’re going to have kids in a couple years is not at all “too long term.”
Back on the "double chicken leg" thang… a thigh & drumstick still connected is a "quarter." I'm writing this irritatingly anal comment because they are SO cheap & delicious when you cook them at home…and so incredibly easy. So, when you're back in your normal home cooking mode again, by quarters at the store. Congrats on sticking to your diet!
Hi there-an excellent post and really rings true. Being frugal, on a low or high wage is definitely the way to go!!
Wow, I love reading your blog, as you have such a positive outlook on finances, which usually make me cringe. I’m so motivated to get out of debt, but I’m worried that getting out of my educational debt will be extremely hard (since I owe a LOT in loans). Do you have any advice as to how I can save money, but also pay off my school loans quickly? Thanks 🙂
Something to consider, you rent very cheaply and buying a place might not be so cheap. Nor will be having kids, buying a nicer car, etc. Things will become more expensive naturally. So it’s correct that you do need to save now while you rent for $500/month. When you pay a mortgage of $2k/month what will happen? Or you start saving for college, vacations together, home repairs, etc?
I know that being single is a lot cheaper than coupling up. Having more goals. More obligation. Right now you live close to home. Move to the US and it will be more expensive to visit home, not to mention having to spend more when vacationing because you lack the time to be flexible.
i think its great that you make a decent income and still stick with your frugal ways! doesn’t warren buffet, one of the richest men in the world, continue to preach frugality as a way to build wealth?(as frugal as a billionaire can be, i guess!)
I was reading an article in the Readers’ Digest that stated that most millionaires they interviewed had one thing in common – they never spent money unnecessarily.
So, good for you!