I’m not a big fan of the extreme frugality and obsession with saving money that is ubiquitous within the FIRE movement.
My idea, on the other hand, is that you should think about your purchases thoroughly, especially for big expense items, and never buy items you won’t really use. I’m talking about purchases that are the result of wishful thinking or some kind of emotional response.
Some examples:
- Buying an indoor bike for Christmas because you feel like on January 1st you’re going to start a “losing weight” campaign. I’d bet 99% of these bikes and similar devices end up gathering dust in a garage eventually. Better to join a gym or start with doing bodyweight exercises and jump rope and see how that goes before investing further money.
- Another category would be clothing and fashion accessories, especially those items that are very particular and you’ll only end up using them once or twice. Better to rent them or have a plan to sell them immediately after use.
I also see a lot of people making what I call false economies, which brings me to the core of my article today.