Spending Less Than You Earn Is Not Saving, It’s Simple Budgeting
If you’ve managed to control your budget to the point where you spend less than you earn, that’s great! However, this does not mean “frugality”. This is just a basic budget.
Thrift is not a concept that all money experts agree on . Depending on who you ask, frugality can mean spending as little as possible, or simply getting the most out of what you already have. However, most will probably agree that simply spending less than your income is not really “lean.” This is the minimum for a balanced budget. As the personal finance blog Simple Living in Suffolk explains:
I have a vague suspicion that frugality now means something different than what it used to mean. At this time, I would venture for most people to define it: “Thrift is not spending more than you earn.” How the hell did we get here? In previous generations, the default was not to spend more than you earn.
Of course, we also discussed that “Spending less than you earn” is not always an achievable goal for some . However, it is a good foundation for financial health. Reaching this milestone does not mean your finances are in top shape. It simply means that they are in black. If you have a balanced budget but want to save more, living a frugal life is a good next step.
Thrift and the myth of infinity Learn More | Simple Life in Suffolk via Rockstar Finance