Frugalist Psychology: Planning and Celebrating Small Victories
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Why do some people remain financially stuck despite having a decent salary?
Often, the problem isn't income. It's our difficulty in thinking long-term.
Our brain loves quick rewards: buying, consuming, indulging ourselves now.
Frugal psychology proposes the opposite: accepting slower, but more lasting benefits.
And it is precisely this difference that can transform your finances, your stress, and your freedom.
👉 Frugal psychology is a long-term psychology. But we're not used to behaving with long-term thinking in mind 😶
Long Duration VS Short Duration
We are used to saying to ourselves ”If we have a goal. We can achieve it quickly if we give it our all.”.
I think this theory is correct. But on 4 conditions:
- Living in a world without the unexpected
- Living in a world without dependence on others
- Have time to work towards the goal
- Goal achievable in a short period of time
➡️ On the other hand, let us note that life and the frugalism They are quite the opposite. That is to say, long-term, dependent on external factors, with limited free time and a host of unforeseen events.
Discipline VS Motivation
For example, between doing 1 hour of sport every 3 days or doing 20 minutes of sport per day. We tend to prefer doing an hour of sport every 3 days.
👉 Why? VS‘It is easier to live in the emotion of a temporary motivation than to live in the regularity of discipline.
And in my opinion, the most important things in life, such as:
- Health
- Social ties with important loved ones
- A passion
- Personal Finance
- Return on investment
It is better to be consistent in the discipline than to have sporadic motivation. 🔺
With finances, it's the same principle. 😉
For example, if we go to the supermarket. What's the point of saving 5 CHF by not buying some fruit. And then immediately after, go to the fast food restaurant on the corner and pay 20 CHF for the menu?
👉 Often, discipline wins over temporary motivations.
Financial independence
Overall, after calculating our expenses and income, as well as an estimate of future returns on an investment, we plan to achieve financial independence after X years.
➡️ Although we have made ultra-precise calculations and have had extreme control over our finances for years, unforeseen events will happen and we will be forced to adapt.
For example, because of a:
- Change of salary
- Inflation
- Very expensive unexpected
🔺 We humans, when it comes to personal finances and the future returns on our investments, like to perform simple and precise calculations. Then, we like to imagine our lives based on our financial calculations.
👉 But we forget that over a long period of time. It's never as predictable and as simple as we think.
For example, frugal beginners (like me at the beginning). They tend to take the 4% rule as a precise rule.
🔺While in reality, in my opinion, it is a rule roughly speaking. That is, to be used only as a guideline.
That makes sense!
This rule is based on past stock market performance. And we tend to forget that the past doesn't necessarily predict the future. The stock market... fluctuates every day.1.
As a result, our financial forecasts are just that: forecasts.
Changing goals over time
We tend to forget that over a long period of time, we often change our personal goals.
In fact, the older we get, the more we tend to think differently. Sometimes, we change our minds over time.
It's the same with money!
The goals we have with money today may not be the same goals we have in the future.
Quite simply, because we will possibly have other opportunities in the future that we do not have today.
Ultimately, frugalism is this: a long-term mindset, based on conscious consumption and a simple life, in order to later achieve financial freedom.
Not planning anything means depending on others
🔺 On the other hand, not planning anything with our personal finances automatically means living from paycheck to paycheck.
And as I've often written on this blog, living paycheck to paycheck means stressful times and financial dependence on others. For example:
- No money for financial emergencies
- 100% Dependence on Money from a Boss or Clients
- No money for a personal project
- Dependence on the official retirement age set by the state
- Dependence on state money during retirement
Therefore, in the long term, it is better to plan our finances and save. But accepting that there are risks and unforeseen events along the way ❗
With better financial habits and better financial management, avoiding overconsumption becomes obvious.
Plan for the Long Term and Celebrate Small Victories
If I wrote such a big introduction. It's for a reason 😉
”Life, frugality and investments should be planned for the long term. But remember to celebrate every small victory”
Therefore, I recommend celebrating every small frugal victory🥳
For example:
- You managed to reduce your monthly subscription by 10 CHF? Prepare a nice meal at home and celebrate with a loved one. If all goes well, you'll save 120 dollars a year. 1,200 dollars over 10 years.
- Your FIRE goal is 600,000 CHF in an ETF? And right now, you just went from 59,000 to 60,000 CHF in your ETF? Buy yourself a drink and celebrate with a loved one. You've already achieved 10% of your goal! That's not nothing.
➡️ In my opinion, waiting for just one big FIRE win is a mistake. Because big wins require a lot of effort and a little bit of… luck.
However, it's a mistake I made myself. At first, the only frugal victory I wanted to celebrate would be the day I achieved total financial freedom 😶
🔺While deep down, frugality has already given me a lot of positive aspects that I forgot to celebrate. For example:
- I no longer stress out about an unexpected bill because I have a savings account for such occasions.
- Although my passive income is not (yet) enough to pay all my bills. My passive income is enough to pay a few major bills.
- My passive income is currently much more attractive than the interest rates on my savings account.
- I have met incredible people in this environment. As a result, I have improved my social side as well as my professional side, with people who have the same passion as me.
Frugalist Psychology: Planning for the Long Term and Celebrating Small Victories
Conclusion
Life, frugality and investments are more effective goals over the long term.
But we, human beings, are more used to having short-term goals. As a result, we have difficulty in behaving over a long period of time 😶
⚠️ It should not be forgotten that The longer the duration of the objective, the more likely it is that there will be unforeseen events.. And the more unexpected things happen, the more we have to adapt to new situations.
On the other hand, aiming for a big goal over a long period of time does not mean that we will succeed in reaching it. Therefore, it is better to celebrate the small victories along the way 🥳
➡️ In truth, every small victory will allow you to gain experience and open new doors 😊
If you wish to go further, you can also read my article on overconsumption or my guide to saving money in Switzerland.
FAQ – Frugal psychology and long-term vision
What is frugal psychology?
Frugal psychology involves understanding one's consumption behaviors in order to spend more intentionally, reduce excess, and build a more financially free life.
Why does thinking long-term improve finances?
Long-term thinking helps avoid impulsive purchases, promotes saving, and allows you to build stronger financial habits.
Does frugality mean living in deprivation?
No. Frugalism is primarily about optimizing one's resources and eliminating expenses that do not provide real value.
How to develop a frugal mindset?
By analyzing one's expenses, setting clear objectives, and prioritizing future benefits over immediate pleasures.
What is the link between minimalism and frugal psychology?
Minimalism primarily affects objects and the environment. Frugal psychology focuses more on habits, decisions, and the relationship with money.
Frugalist Psychology: Planning for the Long Term and Celebrating Small Victories
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Overall, this blog lives on sharing a frugal and minimalist lifestyle.
For a question of transparency towards the readers. All recommended products are in order to make life cheaper, simpler and to promote the essentials.
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About me
I decided to create this blog to develop and help readers who are looking for a simpler and more economical life.
Compared to before, I was a person who consumed a lot until the day I realized that my consumption made me sadder and poorer 😑
Now I prefer the minimum of my needs to be happy and achieve my financial freedom.
Without realizingI started to focus on saving and investing to depend on a boss for as little time as possible and to speed up my personal projects.
For several years I have felt happy and I have become richer in a way that I would never have imagined given that I have an average salary in Switzerland.
It is for this purpose that I decided to create this blog. In order to share and learn with other people who seek freedom and simplicity 😉
Are you rather minimalist or frugal Jonny?
I am as minimalist as I am frugalist. However, there are situations where I lean more towards an art of life.
To conclude, I think the most important thing is to feel comfortable in your lifestyle 😊
Frugalist Psychology: Planning and Celebrating Small Victories
Frugalist Psychology: Planning and Celebrating Small Victories
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