3 Ways Living Frugally Can Actually Make You Feel Wealthy
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Frugal isn’t a four-letter word, but too many people treat it like one. They see living below their means as punishment for overspending a little (or a lot) and having some fun, like drinking tap water when everyone else is savoring champagne.
But being frugal isn’t about deprivation. Done right, living cheaply helps you afford the kinds of experiences that feel truly luxurious.
For JC Rodriguez, founder of The Frugal Rich and a financial coach, that lesson came early. Growing up as a first-generation Filipino American, he watched his parents live well while living frugally. What many people overlook, he said, is that frugality isn’t just about saving money — it’s also about knowing how to spend it wisely.
Rodriguez spoke with GOBankingRates as part of our Top 100 Money Experts series about how a few simple mindset shifts — along with smart money habits — can turn frugality into fun.
1. You Spend on Things You Truly Want — Guilt-Free
Rodriguez knows many people equate being frugal with being “cheap” — as in, only covering the bare necessities with no room for pleasure. He wants to reframe that mindset to focus on intentional spending.
Instead of fixating on what you can’t have, think about what you truly want and how much money you’ll need to experience it. With that knowledge, you can develop a broader spending plan that allows you to afford what you really want — while still covering the essentials.
“For example, my wife and I don’t care about driving a flashy car, so we happily stick with our older, paid-off sedans,” he said. “What we do value is travel and exploration, so instead of pouring money into car payments, we use those savings to take international trips. Most recently we went to Greece for our anniversary. That’s the freedom frugality gives us.”
Being thrifty enabled Rodriguez and his wife to put money toward a once-in-a-lifetime trip — without worrying that they’d blown a hole in their family budget.
“When you direct your hard-earned money toward things that matter, you can save for the future while also spending guilt-free on what you truly love,” he said.
2. You’re Encouraged To Think About What Makes Life Richer
While Rodriguez and his wife knew travel was their top priority, not everyone knows right away what adds the most value to their life. Surprisingly, creating a budget can help you figure it out.
Rodriguez suggests listing the top three things that genuinely bring you joy — whether that’s travel, time with friends or even investing in your future. Then, look at areas of your budget that don’t deliver that same joy, and trim those first. He calls it “values-based spending.” That could mean eating out less or cutting back on shopping sprees that offer only temporary satisfaction.
“By reducing expenses in areas you don’t care about, you create the freedom to spend more on the things you do,” he said. “Saving stops feeling restrictive and starts feeling empowering, because every dollar you’re not wasting is a dollar redirected toward what matters most.”
3. You Get Out of a Survival Mindset
For Rodriguez and his wife, a values-based approach to budgeting — one that emphasizes joy — is key to making saving feel effortless. Every penny saved reflects an opportunity to get what they want, not a sacrifice. That mindset keeps them motivated.
“To save on a consistent basis, we focus on lowering our recurring expenses — the things we automatically pay each month,” he said. “For most people, it’s housing, car payments, insurance and subscriptions. So, if you can lower those costs, that can really move the needle on your savings rate.”
When he and his wife review their monthly spending, they track when certain expenses start to creep up. That could mean canceling a subscription they don’t use or shopping around for cheaper car insurance every six months. They also keep transportation costs low by avoiding car loans.
“With housing, we make sure that wherever we rent doesn’t take up over 25% of our take-home pay,” he said. “This allows us to have a huge margin in our budget for other goals, instead of surviving day by day.”
Bottom Line
Living frugally doesn’t have to feel like a sacrifice. According to Rodriguez, adopting a values-based mindset for your budget can help you afford the experiences that truly bring you joy — like an anniversary trip to Greece. By focusing on saving for what you genuinely want, you’ll be able to make strategic cuts that keep your spending aligned with your values.
It might be easier than you think.
This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.
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