Frugalism: How to get rich by wanting less

Ever wondered how some people retire in their 30s while you’re still figuring out how to save for your next holiday? No, they didn’t inherit millions or win the lottery, they just mastered frugalism. But wait, isn’t that just being cheap? Not at all! Frugalism is about smart spending, intentional saving, and financial freedom. It’s the reason some people can quit their jobs early and live life on their terms.

The term frugalism comes from the Latin word frugalis, meaning economical or thrifty. While the idea of living below your means isn’t new, frugalism as a movement has gained momentum thanks to trends like the FIRE (Financial Independence, Retire Early) movement. At its core, frugalism is a lifestyle that focuses on:
 

• Spending less than you earn
• Cutting unnecessary expenses
• Saving and investing aggressively
• Achieving financial freedom as early as possible

Some frugalists aim to retire decades before the usual retirement age (think: sipping cocktails at 40 instead of 67), while others just want to stop stressing about money and live with financial security.

You don’t have to live like a monk or start reusing tea bags (yes, some extreme frugalists actually do this!). Here are practical ways to embrace frugalism without feeling deprived:
 

1. Track every cent like a financial detective Most people have no idea where their money goes. Use a budgeting app (or a simple spreadsheet) to find hidden expenses that drain your wallet. Those daily coffees, impulse buys, and forgotten subscriptions add up fast.
2. Test what you want vs. what you need Frugalists are experts at questioning every purchase. Do I need this, or do I just want it? If it’s the latter, is it worth the cost of my financial freedom?
3. The 30-Day Rule (aka Impulse Buy Kryptonite) Want to buy something nonessential? Wait 30 days. If you still want it, go for it. If not, congrats—you just saved money. (Works like magic!).
4. DIY, DIY, DIY From home-cooked meals to minor home repairs, doing things yourself saves serious cash. Even billionaire Warren Buffett still lives in the same modest house he bought in 1958!
5. Buy quality instead of cheap Frugalism isn’t about buying the cheapest stuff; it’s about buying fewer but better things that last longer. That’s why frugalists prefer a 400 CHF coat that lasts 10 years over a 100 CHF coat that lasts one winter.
6. Invest every spare franc Frugalists don’t just save; they invest. Whether it’s ETFs, stocks, or real estate, they make their money work for them instead of letting it sit idle in a bank account.

Frugalism isn’t just about cutting costs; it’s more about spending better. Here’s where spending more can actually save you money or bring you more happiness:
 
Buy luxury, but less often
Instead of constantly buying cheap clothes, gadgets, or furniture that wear out quickly, frugalists go for high-quality, durable items. A designer bag or a well-made winter coat might cost more upfront, but if it lasts a decade, you’re actually spending less per use.
➡️ Frugalist logic: I’d rather buy once and chill for years than replace junk every season.
 
Prioritise experiences over stuff
Frugalists often spend more on things that create lasting happiness, like travel, concerts, or special occasions. Studies show we get more joy from experiences than from material things.
➡️ Frugalist mindset: Nobody remembers your sneakers. But they’ll remember that trip to Porto.
 
Spend on food, capitalise on health
Buying fresh, nutritious food might cost more than cheap fast food, but eventually, it saves on medical bills and health issues.
➡️ Frugalist vibe: I’ll pay 3 CHF more for broccoli now if it means fewer pills later.
 
Travel more by being smart about it
Many frugalists travel a lot, not because they’re rich, but because they know how to hack the system.
➡️ Frugalist flex: Flying off-season in a boutique hotel beats paying peak prices for average.
 
Spend more on comfort, avoid long-term costs
A cheap mattress or bad office chair might save money now, but you’ll pay for it later in back pain and medical bills.
➡️ Frugalist flex: My back doesn’t hurt, but yours might.
 
Invest in skills that make you more money
Frugalists don’t just save – they spend on things that increase their earning power.
➡️ Frugalist strategy: That 200 CHF workshop could pay off way more than a 200 CHF jacket.
 
Use frugalism to buy back time
Sometimes, spending more actually saves you money. If hiring a cleaner, getting meal kits, or automating tasks frees up time for work, health, or happiness, it’s worth the cost.
➡️ Frugalist mindset: I don’t pay for cleaning. I pay for time I can spend doing literally anything else.

Frugalism isn’t just for finance nerds. Some of the world’s wealthiest and most successful people swear by it:
 

• Warren Buffett: Despite being worth over 100 billion USD, he still lives in the same house he bought for 31’500 USD in the 1950s and drives an ordinary car.
• Ingvar Kamprad (Founder of IKEA): The man who created one of the biggest furniture empires was famous for flying economy class and driving an old Volvo for decades.
• Keanu Reeves: A Hollywood star who could afford private jets, but instead takes the subway and donates most of his wealth to charity.
• The FIRE Movement Community: Thousands of millennials are proving frugalism works by retiring in their 30s or 40s after aggressively saving and investing while young.