Mention the word ‘frugality’ to those who belong to Generation X, Y and Z and millennials and you will soon realise that they either do not understand what the word means or, worse still, define you as a grumpy older person. But there is still hope that we may be rediscovering the lost virtue of achieving more with less waste.
While the pandemic has battered many, it is also reshaping the socio-economic landscape in most countries. Many are beginning to see the more beneficial aspects of embracing the simplicity of their newfound thrifty lifestyles. There are, of course, some misconceptions of what frugality really involves.
Unfortunately, for some, frugality is not a lifestyle choice because they are forced to live frugally due to circumstances. The working poor are a reality that exposes the unfairness of many aspects of our society. But choosing to live a frugal life can also be an inherently positive decision that is not based on money.
Frugality does not mean that you have to deprive yourself of everything that brings joy to your life. It certainly is not about the monastic version of poverty. It certainly does not mean always buying the cheapest things. If you want value for money, it often makes more sense to buy a good reliable car that will last you 10 to 15 years rather than opt for an old, second-hand banger about to give up its soul.
Those who belong to a generation that felt blessed in their youth if they owned a decent pair of shoes and a smart suit for special occasions fail to understand while younger people are so obsessed with wearing branded clothes.
Our consumerist society wants us to believe that we are what we buy. Consumerism brainwashes us into believing that everything we purchase and own sends a message to the world about who we are and the values we hold. For instance, owning an over-specified luxury car for use on our congested road system hardly adds any value to your time management. It probably adds to your frustration when trying to park it when going for a meeting.
Frugality forces us to appreciate the fact that we are not what we own. People who adopt a frugal lifestyle do not look for external affirmation of personal wealth
The rediscovery of frugality helps us to build self-discipline. Learning to control your spending is one way you can develop your self-discipline. Many have lost the ability to distinguish between wants and needs. Postponing those wants until they are affordable is a mark of a real and mature person.
Frugality also makes us more self-reliant. As the future, especially for younger people, looks increasingly uncertain because of the multitude of challenges that our society faces, feeling financially independent boosts your self-respect.
Not so long ago, fathers used to pass down their sons skills like building a workbench, fixing a leaking tap and painting their rooms. Mothers passed similar housekeeping skills to their daughters. Unfortunately, today, we see much less of these intergenerational skills transfers.
Businesses are also beginning to understand this slow shift to consumers embracing frugality as a chosen lifestyle. Consumers are slowly shifting their perspective on frugality. In a 2020 US survey, 67 per cent of Americans considered being called frugal a complement, while 65 per cent claimed the pandemic has transformed them into a more frugal person.
To engage frugal consumers, companies are revaluating their business models.
As a result of the global recession, a McKinsey’s research in the US found that one-fifth of consumers traded down to lower-priced brands and 46 per cent were pleasantly surprised by the quality of cheaper goods.
Major multinationals like Nestlé, PepsiCo and Kellogg’s are now focusing on reducing their core products’ assortment to roll out more affordable offerings. Ikea is now offering spare parts for those clients who would rather fix their broken furniture than buy new replacements. Microbusinesses who invariably rely on lean management systems have shed fewer low-income jobs than the larger businesses during the pandemic.
The frugal life is not the cheap life. It is about being mindful of where your money is going. It is about worrying less about how you will survive if your financial situation suddenly deteriorates for whatever reason.
Frugality forces us to appreciate the fact that we are not what we own. People who adopt a frugal lifestyle do not look for external affirmation of personal worth. They look within themselves and understand that what makes them better people is not the paraphernalia of wealth but the moral strength of always seeking to do what is right.