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To start being frugal, you have to determine what you value. How do you do that?
(Before you read this post, you should go back and read about the difference between being frugal and being cheap.)
Values. Everybody is always talking about values, and for good reason. They are what help you guide you decision-making in life. Without them, it will be a lot harder for you to define both your goals and your path towards those goals.
Without values, you can feel directionless. In terms of frugality, you can’t be frugal if you don’t know what you value; in order to be frugal, you must know what you don’t care for so that you can cut it from your life, and you must know what lights a fire in you so that you can redirect your resources towards that.
Some people seem to be born with their values and are firmly set in their belief of what’s important. For them, it isn’t hard to determine what they value since they already know! Others are not sure what they value at all; they may pretend to value something to fit in with a crowd, but deep down, they know they do not really care for whatever it is.
So if you feel that you are in the latter group, how do you determine what you value? Well, it may take time.
In order to find out what you truly value, you have to take an objective look at your life and how you spend your valuable time and money. This may mean taking a break from whatever activities you keep telling yourself are fun, like hitting the bar despite the fact that you’re introverted and get worn out by socializing.
Here is how to determine your values:
- Identify moments and memories from all aspects of your life that you truly felt accomplished.
- What were you doing and who was it with?
- Repeat step 1, but this time with moments that you felt happy.
- Once you’ve identified these, try to determine why you were accomplished/happy.
Your values will naturally follow from the reasons why you found those moments fulfilling. For example, lets say you felt quite accomplished that you graduated college. Why did you feel accomplished? Was it because you wanted to demonstrate your work ethic? If so, then you value you find hard work important, and that would be one of your values.
Let’s say you also funded your college education by yourself by working full time. You would most likely be proud of that because it shows your self-reliance, which would be another value.
For another example, lets say you felt happy when you built a successful business and sold it for a massive profit, allowing you to retire early. Sure, you may be happy about the money, but the freedom that comes with retirement might be what you truly value.
Once you know your values, you can determine what your goals are. Do you value freedom? Perhaps you redirect your funds towards business ventures that allow you to one day achieve financial independence. Do you value family? Maybe you spend less money on your own desires and spend more money and time with your loved ones.
Personally, I value efficiency, helping others, health, and self-development/continuous learning. You can see some of these values reflected in this site:
- Learning something new every day about personal finance and frugality
- Providing valuable content to others to help them better their own financial lives
The other values are reflected in my life. I value my health highly. In order to follow this value, I direct resources towards exercise and healthy eating. However, I also value efficiency, so I make sure to invest in meal prep containers
I continue to dedicate time and money to these things because I find value in them.
Again, being frugal requires that you know your values, as knowing your values allows you to find causes worth directing your valuable resources towards.
For a more in-depth method that will really help to determine your values, check out this article on 7 steps to help determine your personal core values.
Take some time to sit down and clearly define your values. It is an investment that will pay off in all aspects of your life.
“Happiness is that state of consciousness which proceeds from the achievement of one’s values.” -Ayn Rand