VALUE OF FRUGALITY IN LIFE /BUSINESS
It has been said that real worthy billionaires are not identified by their lifestyle. The real creators who bring value to both life and business. In the startup system the flaunt starts much before the rubber meets the road. The sign of success is not longevity and growth for them on a consistent basis but adorning oneself with the paraphernalia of luxury, wealth, easy life and style. Nonetheless, frugality as value and a north star of life has been established for a long time by now. It is a well proven philosophy, mental construct, plan and practice of life.
Frugality means the quality of being frugal, or prudent in saving; the lack of wastefulness. It can aptly be applied to a variety of life and business scenarios by its vertical and horizontal extensions. Warren Buffet is accepted as the best practitioner of this practice and has garnered immense wealth. This can thus be taken as a super success of this lifestyle. His name has been synonymous with smart, disciplined investing and tremendous wealth. The uninitiated find Buffett’s lifestyle intriguing and the onlookers are completely baffled. His lifestyle has always been termed as frugal. He lives in a humble dwelling bought in 1950s for $31,500 and has a daily McDonald breakfast never exceeding $3.17.
What is this riddle of frugality and what does it mean for life? The kernel of this thought and practice is super emphasis on minimalism, simplicity and prudence in spending. It is all about taking every dollar of yours to its maximum potential and getting the best value of every penny spent. How many of us would find our ourselves truthful and objective on this touchstone? The general perception of frugality is not proper; it is perceived to be denying yourself pleasures; on the contrary, it is about where your money goes, ensuring that it brings the most value and joy.
For Buffett it meant more savings and hence more funds to invest and grow, leading to his cherished goal of wealth accumulation. In the very same thought process, frugality promotes financial stability and shields you from debt. This becomes a sturdy fence protecting your wealth. He has been successful in not only building this fence, but he was successful in maintaining and fortifying it for decades. Frugality fed into his investment strategy. He has been known for his value oriented approach. He is the father of value investing. His philosophy; ”investing in strong, reliable companies that he believes are undervalued by the market.” He preferred businesses with consistent profitability and a good return on equity. Frugality develops expertise and acumen.
FIND VALUE IN LIFE AND BUSINESS THROUGH THE PRACTICE OF FRUGALITY.