Holly Johnson* says too many people approach frugal living as if it were an all or nothing scenario and fail to factor in some fun.
Photo: Andrej Lišakov
While there is no such thing as a “magic formula” for building wealth, living below your means is by far the closest thing.
When you spend less than you earn and save the rest, you will build wealth — and savings.
But, there is definitely a balance to be achieved when it comes to spending less than you earn.
You definitely want to hit your savings goals, but you have to live, too.
And sometimes, finding a happy medium can be extremely hard.
Seven ways to beat frugality fatigue
The reality is, too many people approach frugality as if it were an “all or nothing” scenario, and they forget there are different shades to frugal living.
Ideally, you should strive to build a frugal lifestyle that is restrictive enough to help you reach big financial goals while also allowing for some fun.
If you’re struggling from frugality fatigue, here are some tips that can help:
#1: Set up targeted savings accounts for specific goals
If you’re living frugally so you can save a larger percentage of your income, saving without a tangible plan can get extremely old.
Saving month after month without any reward can be boring when you don’t get to enjoy the fruits of your labour for a long time.
It can help to set up targeted savings accounts for different goals.
Maybe you want to retire early and travel, but you also plan to remodel your kitchen once your kids leave the nest.
In that case, setting up a few targeted savings accounts for your home remodelling project and future travel lifestyle could add enough substance to your savings plan to keep you on track.
#2: Create a slush fund
Maybe your savings goals are reasonable, but you’re just tired of the frugality grind and desperate to have some fun.
Even if you’re trying to pay down debt or save up for a big goal, it can make sense to have a slush fund you can spend however you want.
If you reward yourself with the occasional “want” and still hit your goals, you may be able to keep up with your frugal lifestyle for a longer stretch.
#3: Embrace a new style of budgeting
There are several different budgeting methods to consider.
If you’re on a bare bones budget that doesn’t allow for any extras, it may be time to switch to a new strategy that leaves you with some wriggle room each month.
One type of budget we advocate is the zero-sum budget, which can be extremely effective because it forces you to “give every dollar you earn a job.”
However, it can also be extremely flexible since it lets you create any budget categories you want.
So, if you wanted some freedom to spend on fun each month, you could just add a “miscellaneous” or “fun money” category to your budget.
Another budgeting method that’s fairly flexible is the 50-30-20 budget, also called “proportional budgeting.”
With this strategy, you would spend 50 per cent of your income on needs, 30 per cent on “wants,” and 20 per cent on savings.
This type of budget gets you away from restrictive spending categories and still helps you save 20 per cent of your earnings.
#4: Loosen the reins for a while
Taking a break for a while can also make sense — but only if you know you can get back on track.
If you’ve been living on a bare bones budget long enough that you’re starting to reach some of your goals, taking a weekend or week off to live how you want won’t be the end of the world.
Whatever it is you or your family needs, there’s nothing wrong with loosening the reins to a certain extent.
Just make sure you don’t go overboard and that you’re prepared to get right back on the wagon.
#5: Reward yourself or your family
You can also consider setting up a one-time or ongoing system of rewards that will kick in each time you hit a savings goal or pay down a certain amount of debt.
These rewards will help you stay motivated and, as long as they’re not overly expensive, shouldn’t keep you from reaching your financial goals over the long haul.
#6: Remember why you’re frugal in the first place
Sometimes all it takes is a look back at where you came from to remember why you became so passionate about where you’re going now.
Look back to where you were and why you wanted to change so much.
Try to remember exactly what it felt like to struggle — or to wish your finances were different than they are today.
Reading about frugality can also do the trick if you’re struggling to remember why you got started.
#7: Look for ways to earn more money
Finally, don’t forget there’s another path that can help you save more money without living on less.
By earning more money, you can free up more cash to use towards goals like debt repayment, saving up to buy a home, and retirement.
There are all kinds of ways to boost your income in your spare time, including part-time or seasonal work.
Some side hustles in the gig economy are extremely easy to start as well.
Whatever you decide to do to earn cash in your spare time, make sure you put that cash to work.
Use it toward your savings or debt repayment goals — or use it for fun so you can continue using your regular income to get where you want to be.
The bottom line
Even inherently frugal people can grow tired of their lifestyle sometimes.
It takes a lot of self-discipline and fortitude to go against the grain and save money in a world where most people are doing the opposite.
Sometimes setting yourself up for success means knowing you can’t be perfect every minute of every day.
If you’re suffering from frugality fatigue, a little break may be all you need.
* Holly Johnson is a personal finance writer and author. Her website is ClubThrifty.com.
This article first appeared at www.thesimpledollar.com.
