THE BROKEN WALLET

*Disclosure: This page may contain affiliate links. We receive a small commission if you purchase something we recommend (at no cost to you). All opinions remain our own.

Being frugal means different things to different people – and there’s a lot of confusion regarding what it is, and what it isn’t.

It involves being more economical with money, so some people have this idea that they can’t spend any money whatsoever or that they have to deprive themselves.

This could’t be farther from the truth. In fact, depriving oneself is probably one of the biggest mistakes some people make while trying to live a more frugal life.

Now, if you’re looking to save money obviously you have to make adjustments to your spending. Lack of a budget and overspending prevents many from hitting their financial goals. So you can’t get to the finish line without making a few sacrifices.

But it’s important to understand the difference between making a sacrifice and depriving yourself.

A sacrifice does involve giving up a few things for the greater good. For example, you might sacrifice a newer car and buy something older to save money. Or you might sacrifice a larger home and downsize into something less expensive.

Depriving yourself is something completely different.

I’ve heard people use the words sacrifice and depriving as synonyms – kind of the same way people use frugal and cheap interchangeably — even though they’re not the same, either.

So I checked a thesaurus, just to see how to correctly use the former two words. And interestingly, they weren’t listed as “other words” for each other.

The word “sacrifice” has alternative soft words like relinquish, yield, or give up – which aren’t that bad.

But when you look up deprive or deprivation, the alternative words are a bit more powerful – and include words like stripped, poverty, neediness, to be robbed of, or cheated. 

So there’s clearly a difference.

Depriving is when a person doesn’t allow themselves any fun or indulgence. To the point where they might deny themselves things that they actually need. This is why it can be dangerous.

Saving money is already hard, so why make it harder on yourself?!?

Here’s a look at three reasons why you shouldn’t deprive yourself to hit your money goals.

1. It’s not sustainable (for the average person)

Now yes, some people have amazing willpower. They can go to extreme measures to hit their money goals such as living in their car, eating ramen noodles every night, couch surfing, etc.

I’m not saying that these measures don’t work. Everyone is different. 

But for the average person, this strategy isn’t usually sustainable long-term and it can lead to frugal fatigue. And once you hit the point of frugal fatigue, you stop caring.

You no longer care about saving money or your other goals, and you basically give up.

Now, in the short-term an extreme measure might work. For example, some people plan a no-spend month and don’t allow any spending outside of their needs for 30 days. This is probably okay. But for a longer span of time, say three months, it might not be the most effective way to save money.

Being frugal is about balance. It doesn’t mean you can’t spend money. Rather, it’s about being more intentional with your money.

I know some people might say, “Well, I can’t enjoy anything just a little bit. I have to be all or nothing.”

I understand that everyone is different. But honestly, how has this been working for you so far?

If an all or nothing approach hasn’t worked, maybe you’re not built that way. It might be time to try something new.

2. Rewards motivate us

Staying motivated on a savings journey is hard. We start off good, yet the excitement tends to dwindle after a while.

Why does this happen?

Often times, it goes back to depriving yourself. If you make the process harder than it has to be, there’s little motivation to continue.

What’s interesting about humans is that rewards activate certain pathways in our brain. And when this happens we feel good and happy, and we seek additional rewards. This increases motivation which keeps us focused.

So if you’re on a savings journey (or another money journey), allowing yourself a reward or treat at certain milestones can do more good than depriving yourself.

3. The occasional splurge “isn’t” likely to derail goals 

The reality is, enjoying the things you like (in moderation) isn’t likely to throw a wrench in your plan. 

Living within your means, giving yourself a splurge budget, and delaying instant gratification helps you enjoy the things you like and still reach your money goals. If you’ve mastered balance and how to control your impulses, the occasional indulgence isn’t going to derail your goals. But not treating yourself might.