Often I find that the break of doing something different (and also maybe saving some money) recharges me for getting back to the Business Coaching that I do.

I love the article. Keep them coming.

Increasing income, for most people on the planet, requires vastly more sacrifice than reducing spending. For example, I graduated high school in the Rust Belt into the worst recession since the Great Depression (1979). Reducing spending was easy. Increasing income required moving to Texas.

I do understand your point. For most readers of erica.biz, it is valid. For the vast majority of people on the earth, not yet so much.

At the moment, that’s $0.

My opportunity costs may be far higher… But in the end, what one’s time is really worth is what puts cash on the barrel head.

So… cash flow is an issue. When cash flow is completely negative, frugality measures need to adjust accordingly.

There is one situation though, which I firmly believe *extreme* frugality is justified, if not fact necessary: reducing debt. Someone with a lot of business acumen and significant positive cash flow can use your guidelines above, as long as they ensure to factor in the cost of carrying the debt load. Most people on salary would do better to just suck it up and pay the debt down.

Less time working. Work time doing something I liked rather than something I didn’t. Net gain in the money in my pocket.

@Briana: Perfectly reasonable.

@HIB: Welcome, and thank you for subscribing!

@Paul: Completely agreed. Great comment!

@Lindsay: I think for a lot of people it may be easier to save money than to make money. People have a misconception that running a business entails 80-hour weeks for years on end while making little to no money. The concept of “lifestyle businesses” (I am a huge fan of this concept) is starting to change that, but it will take a while for this to percolate down. Frugality will definitely be a huge trend for the next few years, though, as people downshift their spending.

-Erica

People get so fixed on the idea that what they make from their day job is all they have and all they ever will have.

Dream big, read for inspiration, and be creative. You’ll be surprised how many ways you can think of to bring more money into your life.

This is why I’ve always differentiated between “frugal” and “cheap”. Frugal people are looking for an excellent overall value, while cheap people just want to pay the lowest price. Dr. Thomas Stanley’s Book, “The Millionaire Next Door” misled millions into believing the wealthy got that way by being “cheap”. Cheap is how some millionaires got that way, but a million ain’t wealthy. His lesser-known book, “The Millionaire Mind” reveals that deca-millionaires and above are value-oriented, and are explicitly NOT “first-cost-sensitive”.

It’s always made more sense to me to focus my time and energy on generating more money. Whether on salary or now in my own business- the best bet is always going for the raise. If you’re gardening and making soap for anything but the pure enjoyment of the process- you’re stepping over dollars to pick up dimes. You can only save money one time. Increased earning can continue and can multiply for life.