13 Awesome Benefits of Frugal Living

Please share with your friends!

Have you decided you want to start living a more frugal lifestyle?  

Maybe you discovered the concept of frugal living through a google search on how to live below your means.  

Or maybe you have friends that talk about how they try to live a frugal lifestyle and they seem to be doing awesome with their finances. 

However you discovered the concept of frugal living, I’m so happy you did!  I love living a frugal lifestyle and I love talking to everyone about it!  

Did you know that many millionaires and billionaires have more than just being wealthy in common? They are typically frugal people [source]!

I strongly believe living frugally has helped my family live below our means and get to where we are today financially, even with two young kids.

There are tons of benefits of frugal living, which is what I want to tell you about today.

But first let’s talk about what frugal living is versus what frugal living is not.  

Frugal living is NOT about being cheap or tight with your money.  It is not about being a miser and hoarding every last dollar you have.  

Frugal living IS about intentional and mindful spending.  It is about spending less on things you don’t care to spend money on so you can spend money on the things that you value most.

It is a lifestyle that allows you to make choices or take a certain path in your life that you may not otherwise have been able to if you spend your money carelessly.  

When you are living a frugal lifestyle, you are choosing how you want to spend your money in order to live the life you want.  

Now that we got that settled, let’s talk about all the awesome benefits of frugal living!

13 Awesome Benefits of Frugal Living

Key Benefits of Frugal Living

#1 Live a more simple life

Frugal living can help you to live a more simple life by helping you to be mindful with your decision making.  This will help you to stop making impulsive choices that are not good food your financial situation.

Maybe you heard of the concept of minimalism.  I personally think frugal living and minimalism go hand in hand.

With minimalism you are deciding what to purge from your home and your life based on your values and what brings you the most joy.  In frugal living you are avoiding spending money on things that do not align with your monetary goals and personal values and beliefs.  

They sound sorta similar, right?  

Although I do not live in a minimalistic home (I love home decor and a warm cozy vibe), I do feel my frugal mindset allows me to be a minimalist in other ways. 

One example of how I feel I am a minimalist is when it comes to clothing, shoes, and accessories.  Since I don’t care to spend lots of money on these things, I don’t have a closet bursting at the seams.  

I have what I need and that’s it.  When I do need something new, I prefer to shop secondhand or shop for deals with sales, coupons, Rakuten, etc.  I just don’t like paying full price for clothes.

See how minimalism and frugality can be sidekicks?  They both help you live a simple life. 

#2 Find more time in your day

Another benefit of frugal living is that if you aren’t out shopping or scrolling your phone to shop, you will have more time to do the things you care about most.  

As I have said before in other posts, frugal living does not happen overnight.  It does take some time, research, thought, and planning to change over to living a frugal lifestyle.  

So if you are spending less time on spending your money, you will have time to read and learn about how to live more frugally. That’s a win-win in my opinion! 

Not to mention you will have more time to spend with your family or on your hobbies (or use the time to find some new hobbies).

If you would like some help developing your own frugal living action plan, you can download my Frugal Living Workbook.

In it you will find worksheets to help you develop your own frugal living plan, a large checklist of frugal living ideas to get you thinking about how you can live frugally, and a frugal living tracker to keep track of your frugal wins over the course of a year.

Once you start seeing those frugal wins stacking up, you should start to notice that you are spending less money!

Benefits of Frugal Living (woman holding $100 dollars bills)

#3 Feel less stressed about money

Once you start living a frugal lifestyle, you should start to notice you are spending less money and your money situation is slowly improving.  As your finances start to improve, you will definitely feel less stressed and overwhelmed about money.

However, if you do continue to feel stressed out about your finances, check out my post on decreasing financial related stress

Being in a constant state of stress about money is not good for your health or your relationships.  You’ll want to address it ASAP.  

In my post about managing financial related stress, you will find stress relieving and relaxation techniques.  However, if you are past the point of being able to relieve your own stress, PLEASE talk to your doctor.  

#4 Feel in control of your money

Another benefit of frugal living is that you will start to really feel in control of your money.  You know why? Because you are being intentional with your spending and making decisions on how to spend your money based on your values and beliefs.

Making value based decisions with your money is very empowering.  And that’s how I want you to feel about your money.  

You control your money.  Your money does not control you!  

When you are in control of your financial situation, you will start to be able to make life changing decisions that you wouldn’t necessarily otherwise have been able to make.  

The perfect example of how I was able to make a financial choice that affected our family life was when we had our children.  

Where I work, I don’t have a “maternity leave” benefit.  I had to use the short term disability benefit that I pay for out of my paycheck to get paid leave of absence for 6 weeks after giving birth.  

Under FMLA, I was entitled to take 12 weeks off after the birth of a child and still have a job when I came back.  

If we didn’t have control of our financial situation, I would have had to go back to work immediately after those first 6 weeks were up and send my babies off to daycare.

But instead, I was able to take the full 12 weeks off even though the second 6 weeks were unpaid.  I was very fortunate to be able to spend that special time with my babies in the first 12 weeks of their lives.

That is what I mean by being able to make life changing decisions.  

Benefits of Frugal Living: Jar laying down with coins spilling out

#5 Live below your means

As you start to stack up your frugal wins, you will start to notice it becomes easier to live below your means. I’m not saying living below your means is only because of living a frugal lifestyle.

However, when you start to spend intentionally it will help!  There are definitely other factors involved in living below your means.  

I go into great detail on the benefits of living below your means and tips for success in this post.  

As your mindset begins to shift to more of a frugal mindset, you will probably start to analyze everything you are spending your money on.  This is how living frugally will help you start living within, and eventually below your means.   

#6 Realize your spending habits 

If you are looking to cut back on your spending and live more frugally, it is usually helpful to track your spending for a month or two.  

Once you track your spending, you will know exactly where you want to focus your energy to reduce your spending and expenses.  

Many people don’t realize how much some of the things they typically buy add up over a month or even a year.  I am not just talking about the cliché cup of coffee on the way to work either!

Things like monthly subscriptions that get billed automatically to your credit card, cell phone service, annual fees on credit cards or other bank related fees, and pest control or lawn services.  

All of these costs add up but all could be either lowered or done away with completely!

Benefits of Frugal Living (mom holding 2 babies looking at tablet)

#7 Meet your financial goals quicker

Another benefit of living frugally is being able to reach your money goals quicker.  Spending less on the things that don’t matter to you allows you to use your money toward other things that are important to you.

Whether your goals are to pay off debt, save for a down payment on a home, save up for a much needed family vacation, or to be able to live off of one income to stay home with your young children, living a frugal lifestyle will help you get there.

#8 Achieve financial wellness 

Financial wellness is simply having your financial ducks in a row.  When you have achieved financial wellness, you are living below your means, paying your bills on time, not in a boatload of debt, and are actively saving for the future.

When you have achieved financial wellness you don’t feel stressed about your money situation.  Money doesn’t interfere with your relationships.  

You don’t worry about paying your bills, and because of that, you are able to sleep at night.  

Frugal living can help you get to that point.  It can help you start to get your finances back on track and help stop the overwhelm that is felt from not having control of your money.  

By trying to start living a more frugal lifestyle, you are taking that giant first step to getting back in control of your money. 

You have to make changes to your spending and start being intentional with how you are using your money if you are going to achieve financial wellness.  

#9 Reach financial independence and retire earlier

The way I see it, financial wellness is a precursor to financial independence.  

Financial independence is when you have enough saved in investments and passive income that you no longer have to work to cover your expenses.  

Doesn’t that sound awesome? I sure think so!

Once you have achieved and are maintaining that state of financial wellness, financial independence (FI) is the next step!  

Just like frugal living can help you get to financial wellness quicker, it can also help you to get to financial independence more quickly.  

There is a whole community of people out there that are working toward something called FIRE.  Have you ever heard about that?  It stands for Financial Independence Retire Early.

Some people in this FIRE community are retiring by 30 or 40 years old! Everyone has their own reasons to want to retire that early.  

Many are planning to spend their “retirement” traveling.  Some are planning on starting a family.  

And others will still work but are totally changing their jobs to do something they feel is way more fulfilling than the job they left.  

One of the major ways people are able to retire unusually early like that is by saving and investing a large portion of their paychecks during the time they are working. 

Some people that are working toward FI are saving upwards of 50% of their income. Sounds crazy hard, right? 

But it is possible and many people are doing it.  

How do they do that you ask?  They do it by being intentional with their money and living a frugal lifestyle.  

Benefits of Frugal Living: woman cooking food in a kitchen

#10 Lead a healthier life by eating at home more often

I absolutely can not talk about the benefits of frugal living without talking about meal planning! There are very few posts I have written on this blog that I don’t at least mention meal planning or eating at home to save money.

I sorta have a special place in my heart for meal planning.  Meal planning is a sanity saver in my eyes.  That’s why I love talking about it so much.  

Not only can meal planning save you money by eating at home, it can help you eat so much healthier! 

Planning nutritious and delicious meals that bring my family together, even on a busy week night, makes me so happy!  I am hoping it is one of those things my boys will remember when they are older.

Meal planning and eating at home more often are a big part of living a frugal lifestyle.  When you plan your meals, you are taking control of your food budget.  

You are getting rid of the impulsive trips through the drive through.  You are avoiding the unnecessary spending on expensive takeout from restaurants.  

Meal planning is majorly worth the time and effort if you are trying to spend less money on your food budget.  

If you are looking for more info on meal planning, saving money on groceries, and tips for eating at home more, you sure came to the right place!

Check out some of these posts!

#11 Be more intentional with all of your spending habits

When you become fully invested in changing your lifestyle to a frugal lifestyle, your mindset shifts.  You start to develop a frugal mindset.

You want to know how you know when your mindset has shifted?  

You begin to look for ways to save money on the costs or expenses that you are enthusiastically willing to pay for that are meaningful to you. 

Let me give you an example.  One of our priorities as a family is to go to the beach every summer.  We only go for one week, once a year.  

Our yearly beach trip is something my family greatly values.  It is meaningful to us because we get to take our boys on a vacation where we can make memories that they will hopefully carry with them for the rest of their lives.  

Because I have a frugal mindset, I am always looking for ways we can save money, even when it comes to our treasured yearly beach vacations.  

It’s being in that frugal frame of mind that has motivated me to continuously be looking for ways to spend less money.  

By the way, you can find some of the ways we save money on our beach vacation here, just in case you are planning one! 

When you start to see those small frugal wins stack up and make a difference in your money situation, frugal living becomes much easier to embrace.  

#12 Have the means to give more generously

Another huge benefit of frugal living is that it helps you to be able to give or donate more generously. Having the means to be able to donate to your favorite charity, give to friends or family that are struggling, or even be able to give a generous monetary gift to a relative for a special occasion are all ways others can be benefit from your frugality.

Giving generously to others has a whole other set of benefits! Aside from helping a good cause, it also helps you feel good about yourself and your purpose in life. I know, deep stuff, right?

But seriously, since I am a healthcare clinician by day, I do want to point out that giving is actually good for your health! You can read about how it can benefit your mental and physical health here.

Benefits of Frugal Living: boy walking through garden

#13 Your kids see the importance of intentional spending

I think this is one of the greatest benefits of frugal living.  When I was younger, I was never taught how to manage my money appropriately.  

Even in high school where I am from, they never taught any basic personal finance skills.  Nothing about budgeting, the consequences of accumulating large amounts of consumer debt, saving for retirement, or even the simplest things like how to balance a checkbook!  

I am not going to let my kids graduate from high school without learning the basics!  Since frugal living and intentional spending are stepping stones to financial wellness and financial independence, it is so important to me that I teach my kids all about it.  

My plan is to use the little everyday things that happen in life to help them slowly gain an understanding of how to use their money properly.

We recently had an incident with my younger son that we turned into a money lesson.  He decided he was going to take $10 he received for a gift and use it in the vending machine to buy a pack of gum where he goes to day camp.  

He was a sneaky little guy and did not ask us permission first.  

Unfortunately, he must not have been supervised during the time he made his trip to the vending machine at camp.  He ended up putting the $10 in and ONLY got his pack of gum out, no change or anything else.

There were lots of lessons to teach him from that!

Final Thoughts

As you can see, there are lots of benefits of frugal living!  However, living a frugal lifestyle does not happen overnight.

Figuring out your reason or your “why” behind wanting to live a frugal lifestyle is the important first step in the gradual progression to a frugal lifestyle and mindset.  

If you need help with transitioning to living frugally, check out my beginners guide to frugal living here.

You can also download my Frugal Living Workbook to help you develop your own personal action plan for transitioning to a frugal lifestyle!

It contains worksheets to help you develop your action plan, a large checklist of frugal tips to help you brainstorm ideas that could work for you, and a tracker to keep tabs on all your frugal wins for a year.  

Download my Frugal Living Workbook here. 

13 Amazing Benefits of Frugal Living
+ posts