9. Frugality - Why is it Important?
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Frugality is a key part of the financial independence and early retirement community, but it's not necessarily all about wearing hair shirts and eating mung beans.
We talk about good and bad frugality and the key metric that defines your progress - the savings rate, or the proportion you save compared to how much you earn. Is it easier to increase your savings rate by reducing your spending? Or by earning more? And is frugality still important once you've reached financial independence or early retirement?
We discuss how plenty of people find happiness in free activities like being outdoors in nature. And we discuss holidays - many see extensive travel as a key goal for early retirement and how can this be done to align with frugal goals?
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