Is It Worth Being Frugal? Why Can’t I YOLO And Spend All My Money?

Why should we be frugal? Why is there a need to invest our money? Shouldn’t we just reward ourselves after working hard on a daily basis?

Based on my personal experience, I can say being frugal is your gateway to attaining financial freedom and the ability to do what you enjoy on a daily basis without any stress. Of course, you will need to have a certain level of financial literacy to invest your money wisely.

Most of us are being brought up to believe in studying hard, finding a great paying job, starting a family and working till retirement age.

We are not trained in any other way and thought that this would be the best way forward in our lives. 

Is this really the best way? Why are we devoting our best years slogging for a monthly pay cheque and by the time we retire, we may or may not have the energy or time to enjoy our fruits. Let’s use the following story as an example.

Story Of Joe And John

why being frugal is good

Once upon a time, there are two twin farmers Joe and John. They both own a plot of land for their apple trees. This is their main source of income for their living.

Joe is satisfied with relying on this one source of income and any profits on the sale of the apples he will spend on items like expensive watches, clothes or cars. 

However, John didn’t do it the same way. He lived a frugal lifestyle and set aside most of his profits to buy neighbouring plots of land.

He worked hard in growing more apple trees on the new plot of land while Joe is questioning his behavior and enjoying life. 

One day, terrible weather destroyed both plots of land owned by Joe and John. Joe had become so reliant on a single source of income that he has nothing to back his spending anymore.

Eventually, he has to suffer in his old age and work till his last breath.

What happened to Joe? All his hard work has paid off as even though his one plot of apple trees have being destroyed, he still owns another 3 plots of apple trees which is generating more income for him than before.

He can even afford to hire people to maintain and expand his business while he enjoys the fruits of his labor till his last breath.

Wrap Up

Most of us are like Joe. Relying on a single source of income and hoping that we will have enough to retire in the future. We don’t do any planning and spend excessively on our wants and needs.

Any major illness lay off or unforeseen circumstances will throw us off our hook. John is like a dividend income investor. He worked hard, lived frugally and set aside money to grow multiple sources of income.

The powerful thing about dividend income investing is that you only need to do your homework once. Purchase great companies with a track record of increasing their dividends yearly and hold them for life.

I am already looking forward to the day I achieve financial freedom and this blog will keep me in check for this journey. I am constantly being inspired by all the Johns in this world and hope this community grows bigger in the future.  

What do you feel about this story? Do you agree with it?

 Thanks for reading.

Jayden Tan

In 2019, Jayden bought his first website and flipped it 10 months later for a small profit. Later on, he learned blogging and content sites can be turned into a great business. Ever since he has been an investor & researcher in the digital space while helping others build financial independence through the internet.

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