Spendthrift, Miser Or Frugal – The Choice Is Yours

Money habits make or break us. It has been proved time and again. But based on our money habits, how are we perceived by others around us? As it is all about a character trait, it is therefore very personal. You may feel concerned about it, or not. But if you are ready for a casual discussion around this topic on a Sunday morning – here you are! Read on.

Habits build characters. Taking a cue from that, our spending / saving habits mostly lead us to become either of the three characters – spendthrift, miser or frugal. How are they different from each other?

Spendthrift – A spendthrift is an individual who spends money extravagantly and often beyond their means. They engage in impulsive and excessive spending, often on non-essential items or luxury goods. They typically do not follow any budget. Spendthrifts are impulsive spender. They live in the moment, not much concerned about the future consequences for their spending habits. They mostly save little and inconsistent in their saving habits. It is not uncommon to find them taking loans to fund some of their expenses.

Miser – A miser is reluctant to spend money even when it is necessary. This impacts their social life negatively. Extreme miserliness often leads to compromising on quality of life. This could mean, for example, cutting short on a vacation trip wherever possible, not indulging in any hobbies whatsoever etc. Misers are in a way obsessed with their money and are afraid of losing it all the time. They almost never or rarely socialize. Of course, they mostly end up accumulating good amount of wealth but rarely enjoying that in their lifetime.

Frugal – Frugality is the practice of being economical and avoiding unnecessary expenses. Frugal individuals make thoughtful choices when it comes to spending, stick to a budget, prioritizing value and necessity over impulsive purchases. They enjoy life often by making some creative choices in case budget does not allow them doing that. In short, they make most of what they have. They save that much what is necessary to achieve a financial goal. They avoid debt to maintain a certain lifestyle or for buying luxury goods.

Being frugal brings high probability of achieving financial freedom in life while maintaining a balanced lifestyle and not compromising on quality of life. Life, of course, does not go in straight line. It has its own demand and priorities change along the way. Still, the money habits that we build and follow, makes a solid impact in living a stress-free, guilty-free and worry-free life. All the best!