How to Live Frugally on One Income

This article will be on minimalism and being frugal. One thing I’ve come to realize at 28 years old is that minimalism is king. If you are dead set on becoming or building something, you need to be focused.

You can’t be focused if you own so much stuff it’s taking all of your time up.
You can’t be focused if you are making an $800 car payment and up to your eyeballs in student loan and credit card debt. Instead, you will be stressed out and full of anxiety and worry.

It’s very hard to be productive and focused in a negative headspace like that.

“The things you own end up owning you. It’s only after you lose everything that you’re free to do anything.” ― Brad Pitt, Fight Club

1) Excessive Belongings Tie You Down Physically, Mentally and Financially

When you have excessive belongings, they ended up tying you down. Physically, financially and mentally.
Not only do your possession’s take up valuable space in your life and home, they take up MENTAL SPACE too.

It’s hard to be focused single-mindedly on a mission when you’ve got a thousand different distractions available at your fingerprints. The more objects you own, the more you complicate your life.

The more you complicate your life, the less mental clarity you possess. The less mental clarity and focus you possess, the harder it will be to achieve your primary goal.

You will find yourself endlessly distracted and your thoughts constantly turning to things that don’t do anything for your goal. Everything in life is either an asset or a liability.

Most personal belongings end up being liabilities.
If it doesn’t fulfill a base need or desire or get you closer to your goals, its a liability.

2)Simplify Your Life So You Can Focus On Your Mission
The more complex your life is, the more DISORGANIZED and DIFFICULT it will be.
The more complex your life is, the more DECISIONS you have to make.

The more decisions you have to make, the more likely you will be led away from your mission.
You want to have a structure routine that allows you to navigate your non priority tasks on autopilot.
You should save all your ENERGY, FOCUS  and THINKING for your mission and goal.

The more complex and cluttered your life is, the harder it is to focus on your goal.
Why do you think Steve Jobs wore the same outfit every day?

What am I going to wear today?

Oh yeah, my black turtleneck and a pair of blue jeans.
Oh wow, I just saved 20 minutes of figuring out what to wear.
Adopting a routine will save you tons of time and focus.
The simpler your life is, the more time and energy you can expend on your purpose.

3)Invest all The Money You Would Have Spent On Junk

Whenever you make a buying decision, always ask yourself:
“Is this something I need, or something I want?”

If the answer is want, don’t buy it.
Its as simple as that. If you’re an impulse buyer, you’re going to end up with two things.
First, tons of useless junk you have to move around everywhere you go.
Second, tons of regret and less money in the bank account.

4)Invest Alot, Save a Medium Amount, Spend A Little

If you are trying to live like a peasant then you must live by this rule. Invest the biggest portion of your income in appreciating (increasing) assets.

Save the next biggest portion for for a six month emergency fund.

Spend a little (Less then you want to.)

Spend a little on essentials like food and shelter.
Do that for twenty years and you can retire.

The problem is normal people do the opposite thing.
They spend most , save very little and invest nothing.

Then they hit 65 and wonder why they are so broke and in debt with nothing to show for it.

It’s because they never planned for the future.

5)Expenses Rise to Meet Income

Most people aren’t able to save more money after getting a promotion or a better job.
Now why is that? Simple, their spending rises to meet their increased income. Basically, they start thinking “I’m rich, I can afford this.”

They then wonder why there isn’t any more money in their bank account.
It’s because their spending has risen to match their higher income.

Example:
Bob makes $3,000 a month. He spend $2,500 a month and saves $500.
All of the sudden, he gets a promotion and is now making $5,000 a month.
Instead of saving $2,500 and living like a monkvy

6)Sacrifice the ILLUSION of Being Rich For The REALITY

What is the illusion of being rich?
The illusion of being rich is maxing out your credit cards, buying a 5 million dollar Mcmansion, driving a 2021 luxury car while being up to your neck in debt.

Why would people do such a thing?
Simple. People want to keep up with the Joneses and show off

They want to compete, to show their neighbors that they are better.

Because they care more about what other people think of them then reality, these people spend every penny.

Another term for these people is “Thirty thousand dollar millionaire’s.”
Why are they called this?

Because they attempt to look like they are rich, even though they are dirt poor.
The real rich do the complete opposite. You could be next door to an undercover millionaire.
You would never know any better.

You see, this guy is smart. He doesn’t go around flaunting money he doesn’t have.
Actually, he doesn’t flaunt his money period. What he does do is save and invest every penny of his money into places it can grow.

He lives below his means. His car is a reliable fifteen year old Toyota he’s had for the last 5 years.
His home is a small little condo. His outfit of choice is a $5 dollar t-shirt, a $20 pair of jeans and $30 sneakers.

He wears a $10 Seiko Watch. Looking at him , you would think he was a broke bum.
The reality is he’s a multimillionaire.
Nobody knows any better. He likes it that way.

7)Make Compound Interest Your Friend

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” – Albert Einstein

Compound Interest can be your best friend or your worst enemy. I recommend you avoid credit card debt like the plague. If you can’t buy it twice with cash, you can’t afford it.

It’s as simple as that. People live beyond their means because credit cards allow them to put the pain off. They are allowed to live beyond their means and put their purchases off into the distance.

They think their plastic debt card makes them free.
In reality, it makes them a slave. Nothing is worth in this life then going into debt.

Nothing.
Knowing you are slaving away just so you can pay your creditors back – with criminally high interest rates. You know what’s funny with banks?

They charge you 24% interest when you borrow nothing, but the interest they give you on a savings account is nothing. It’s so low it doesn’t even beat inflation. Compound Interest can either be your friend or foe.

It all depends on what end of it you are.
Invest your money wisely. Max out a 401k and an IRA.
Take calculated risks. You’ve got to spend money to make money.

The stock market produces an average of 8% annual returns. That’s A LOT better then the negative -5% purchasing power your money loses in inflation ANNUALLY sitting in a very low interest savings account.

8)Become Financially Literate: Suggested Reading/Audiobook Material

The first step to becoming financially literate is to educate yourself.
Educating yourself. That way you can be prepared.

Below is a list of suggested reading material with Reviews Included:
Rich Dad, Poor Dad – Robert Kiyosaki
The Richest Man in Babylon

9)Conclusion:

Live it up today and be a broke bum 15 to 20 years from now. Or live below your means today and be a balling badass 20 years from now.

Only you can make that decision.
Only you will suffer the consequences or reap the rewards.

I recommend you make the necessary sacrifices today so that you can have a brighter future tomorrow.

That is How to Live Frugal.

-AJ Lifts