Why Frugality is Liberating and How You can Downsize Your Financial Stress 

There’s no doubt that issues involving money cause significant stress in our lives. A 2007 study by the American Psychological Association showed 73 percent of Americans consider money a significant source of stress in their lives. Another study conducted by the Associated Press and AOL indicated a 14 percent increase in money stress from 2004 to 2008. So, why are we so stressed out?

Student loan debt and credit card, two possibly significant factors, are at an all-time high. Also, the 2008 recession wiped out or impacted the retirement accounts of millions of people, leaving them wondering if they have enough money to survive their later years. Surely, there must be an answer to all this pressure we’re feeling!

There is: frugality. Though people often confuse “frugal” with “cheap,” it has a pretty straightforward definition: “careful about spending money or using things when you do not need to; using money or supplies in a very careful way.” Essentially, it means to not spend money you don’t have, something Americans, who combined owe over $850 BILLION in credit card debt, are not good at.

Imagine a life with fewer bills, harassing collection calls or credit card companies requesting payment. Wouldn’t that be less stressful? Living frugally means living within your means. You’re not chained to credit card companies, a bank or your parents. It creates greater independence and can even be (dare we say it?) fun.

So, how can I live frugally?

There are many ways, but budgeting and saving 10-20 percent of your paycheck is a great place to start. Bored? Stop browsing online shopping sites and go for a walk or head to the library to get a good book. You can also get creative: one mom realized she was wasting too much food every week, so she began taking pictures of all the food she threw away to motivate herself to shop smarter.

If you ask yourself, “Do I really need this?” before making a purchase, you’ll make smarter decisions, save more money, have less debt and live a generally happier life.

How can you life frugally? Lincoln Savings Bank challenges you to find the innovative ways to use your money a little smarter and stretch your dollars just a bit further. You can always turn to LSB and we’ll see if there’s anything we can do to help!

Lincoln Savings Bank, Member FDIC