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In this article, we’re diving deep into the topic of extreme frugality. What is extreme frugality, is it an example of frugal living gone too far, what are some examples of frugal living to the extreme, and how can you tell if you’re in the depths of the frugal lifestyle? Let’s unpack.
Living frugally is overwhelmingly referred to as a positive habit. It encourages healthy spending habits, a more eco-conscious outlook, placing your priorities with the things that bring value to your life, and overall building a life that works best for you.
As with all lifestyle choices, however, it’s possible to take it too far.
Enter, extreme frugality.
This term refers to cases in which frugal living is just that bit too…much. We’ve touched on this topic before when looking at the differences between being frugal vs thrifty, and being frugal vs being cheap or stingy.
How To Identify Extreme Frugality
Before diving into some examples of extreme frugality (plus some effective extreme frugal lifestyles), let’s take a look at ways you can identify this habit vs standard frugal habits.
1. You’re Using Frugal Living As An Excuse To Avoid Something
Do you skip social events with the excuse that you need to save money, when in fact it’s because you’re a total introvert? Do you eat the same meal, over and over again, because it’s cheap – but also because you don’t want to try eating new foods?
Bring some awareness into your money-saving habits and look beyond just the money. If you’re using those habits to mask something you’d be better off facing head-on, recognizing that fact is the first step.
2. Your Lifestyle Is Worse Off For Being Frugal
For some people, extreme frugality may be making your lifestyle far worse than it would be if you had stereotypical spending habits.
It’s when you’re miserable because of frugality that you need to question what’s more important: a few pennies, or your happiness?
3. You Feel Isolated
Does your extreme approach to frugality leave you isolated from other people? If your social life is suffering as a result of a quest to save money, this could be a sign that you need to re-evaluate things.
Read this next: 21 ways to live a more intentional life and get back on the right path.
4. You Never Treat Yourself
One of the best things I learned from Parks and Recreation (and believe me, there’s a lot of lessons in that show) is that sometimes, you’ve got to treat yo self.
If extreme frugality means you never use your money for your own happiness, that’s a sign things have gotten too far.
5. You Don’t Actually Enjoy Being Frugal
There’s a real difference between missing out and FOMO. It only takes a shift in perspective to realize that all those holidays, expensive belongings, and extravagant purchases the people all around you are making go hand in hand with a heap of debt that being frugal allows you to avoid. That’s frugal living done right.
However, frugality may have gone too far if you don’t even enjoy being frugal anymore. When the joy of your lifestyle choices has disappeared, maybe things have shifted too far away from a healthy balance.
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Examples Of Where Extreme Frugality Goes Too Far
Extreme frugality will often come at the expense of something else – and often, it’s the person inflicting these habits that suffers in the long term.
Here are a few examples of when that might happen.
1. Health Issues
Opting for the cheapest options, like instant noodles instead of nutritious meals, might save money but can harm your health. This could lead to malnutrition, weakened immunity, and long-term health problems like obesity or vitamin deficiencies.
A prime example of this is this case in which a university student ate nothing but instant noodles for three weeks to save money. Sadly, the frugal diet caused health complications which ended in her being hospitalized.
2. Missed Social Connections
Overly strict frugality might cause you to miss out on social gatherings and events due to concerns about spending. This could lead to feelings of isolation and loneliness because you’re not spending time with loved ones.
This is something that is all too common – this reader felt that her savings goals were affecting her social life, for example. Sometimes sacrifices need to be made to reach your goals, but it’s important to analyze whether the cost is worth what you’re putting in.
3. Compromised Comfort and Safety
Denying yourself basic comforts like heating or choosing cheap, potentially unsafe products can impact your well-being and safety. This lady, for example, says she hasn’t put her heating on for two years and is proud of how much money she’s saved.
While this might be working for her, for others, it could be a dangerous move putting your health and mental well-being at risk.
4. Obsessive Behaviors
Frugality can turn into an obsession, where you might constantly think about saving money, or it could lead to compulsive behaviors like hoarding items just because they are on sale.
Fear of spending money is so common that it’s classed as a form of OCD.
Examples of Potential Positive Extreme Frugality
With all of the above said some examples of what may be considered extreme frugality can also be seen as positive movements.
These examples are where someone has fully adopted a lifestyle choice that may seem odd to the majority of people, but work for many others nevertheless.
It’s similar to the vegan lifestyle, for example. To many, this is an extreme lifestyle change – but that doesn’t mean it’s a negative change to make to your life at all. Examples of positive extreme frugality include:
1. Zero-Waste Lifestyle
This involves minimizing waste to an extreme degree, often resulting in a significant reduction in environmental impact. It includes practices like reusing items, composting, buying in bulk to reduce packaging, and making products at home to avoid waste.
Have a look at these 80 Frugal Green Living Tips For A Sustainable 2024 for some examples of zero-waste living tips.
2. Minimalism
Living a minimalist lifestyle, where you only own what you truly need and use, can be a form of extreme frugality. It often leads to less spending, and less waste, and can contribute to a clearer, more focused mindset.
We’ve covered minimalist living in-depth before. Read these 10 steps to being more minimalist to get started.
3. House Hacking
This is a strategy where you buy a property, live in part of it, and rent out the other parts. This can significantly reduce or even eliminate housing costs, which are typically one of the biggest expenses for individuals and families
4. Financial Independence, Retire Early (FIRE) Movement
Many adherents of the FIRE movement practice extreme savings and frugality to retire much earlier than traditional retirement age. This often involves saving a large percentage of income and living frugally to build up enough savings to retire decades early.
This list of popular FIRE bloggers will show you some examples of people following this lifestyle and excelling at it!
5. Homesteading
Living a homesteading lifestyle involves producing as much of your food and resources as possible. This can include growing vegetables, raising livestock, and preserving food, which can greatly reduce living costs.
The Frugalwoods are great examples of people choosing the homesteading lifestyle out of a want for a simpler, quieter life.
Final Thoughts
This post was initially inspired by a long-delayed hair cut that I had put off in the name of frugality and then regretted because it gave me a huge confidence boost. That may seem like kind of a dumb thing for a lot of people.
That’s not the real point, though.
The point is that sometimes, your own happiness – be it short-term or long-term – is more important than the lifestyle you’re trying to adhere to, or the fastest route to financial freedom.
As for me, I’ve already accepted the fact that I’ll be paying for my £50 haircut every 3 months, and that if I ever want my social anxiety to improve I need to face the situations that escalate it, not run from them – and honestly? The cost of creating that happier life for myself is priceless.
