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Frugal Living Isn’t Everything – Here’s Why

  • Post author:Bob Haegele
  • Post last modified:March 14, 2024

Yes, I know. Gasp. How could I possibly say that frugal living isn’t everything, given that it is literally in the title of this blog? Well, the truth is that being frugal can potentially be a bit limiting. Especially if your income is on the low side.

And that’s what this post is about.

I hear many bloggers talk a lot about how financial independence is so much more difficult when you aren’t making any money.

At the same time, it can seem a bit patronizing for me to speak about how “easy” financial independence is, given that I do make more than most.

I’m not trying to hide this fact. And for what it’s worth, I totally agree.

In fact, even though I haven’t spoken about it much, I definitely agree that “winning” at personal finance is much easier if you can increase your income.

Rather than simply saying you should “change your mindset'” or that you should “just spend less,” I would like to go on record in saying that it is indeed not always so easy.

I mostly speak in such a way when addressing those in situations similar to my own. But of course, not everyone’s situation is quite like mine.

So, rather than addressing this issue in a patronizing or negative way, I would like to tackle it in a more constructive manner.

Extreme Frugal Living Doesn’t Always Work

To give a simple example, let’s imagine a family of four with a modest household income of $75,000. Again, this is their combined income, and both parents work. I obviously wouldn’t know the full scope of this hypothetical family’s expenses.

But with their household income, it’s easy to see why they might be a bit shackled.

After all, the annual contribution limit for most retirement plans is $19,000 in 2019. Doubling this number to get $38,000 for both parents would put us at just about 50% of their household income.

And while 50% is conceivable for some, it would almost certainly prove difficult for our imaginary family. Yes, retirement savings are important, but you still need to be able to cover living expenses.

Frugal living can be especially challenging for families.

Even if they manage to avoid a car payment by purchasing used, they would likely have a mortgage or rent. If that mortgage was, say, $1,200/month, they would be paying $14,400 annually. That would leave them with $23,600.

Major Purchases Can Negate Frugal Living

But what if they had to buy that used car of theirs this year? Let’s say they buy a minivan or SUV. Even if they find a pretty good deal, they would likely spend at least $10,000.

Are you seeing where I’m going with this? Frugal living can really do wonders. But not always.

Again, I don’t have a family of four of my own, so it’s hard to predict all of their expenses. But I haven’t even covered food, school costs, utilities, and a whole slew of others. And yet, we only have just over $10,000 left, give or take a few thousand.

Oh, and I also haven’t mentioned taxes. That’s a whole other (rather large) expense.

It just isn’t likely that they would be able to max out even a single retirement plan. But depending on their jobs, maxing out these plans might be critical to a safe and secure retirement.

This is a real problem to which there is no easy solution. In lieu of that, I’d like to offer a suggestion or two.

Should You Keep a Frugal Budget?

Consider the expenses mentioned above. Other than extremely frugal living, how much can this family realistically trim from their budget? After all, most of the expenses I listed were more or less essential.

And turning off the lights when they leave the room isn’t going to save them $5,000 per year.

Increasing Your Income

You know what’s easier than keeping a frugal budget? Increasing your income. Now, before you scoff and proclaim “that’s easy for you to say,” bear with me for a moment.

$5,000 is an arbitrary number, but let’s continue to work with it. After all, while some of us might be able to trim that much in order to save adequately, I would venture a guess that some can’t. In fact, I would bet that many don’t have this option.

Even if you can cut the morning latte and bring your lunch more often, you may fall far short of maximizing your retirement plan(s).

Frugal living might mean trimming expenses. But that can only do so much good.


Skipping the latte will only do so much good.

But now, let’s spice things up a bit. Let’s imagine for a moment that just one of the two adults in the family picks up some sort of side job/side hustle. Yes, I know, most adults’ time is very limited.

But even at a low rate of $10/hour, that means it would take just 500 hours annually to make up our $5,000 figure. And what does that work out to on a per-week basis? Just under 10 hours.

A decent chunk of time, sure, but I personally believe it can be done. Especially if that time is split between adults!

You can increase your income with a side hustle, giving your input with surveys, and asking for a raise at your current job.

Finding a Balance Between Frugality and Wasting Time

Here is yet another way to look at this: frugal living takes time. Perhaps you clip coupons, look for deals on products online, go to yard sales/estate sales, go to thrift stores, and so on.

Of course, I’m not saying you shouldn’t go one or even all of these things. After all, I have advocated for some of them on this blog before.

But the point is, as I said, is that these things do take time. And sometimes it’s important to try and find a balance between trimming expenses and, in this case, increasing your income.

There’s no exact formula for how to actually find this balance, so here is what I would recommend. Start by using some of the cost-cutting methods listed above – or whichever one you prefer. If doing so is a breeze and you don’t mind doing it at all, I would say you’re doing well.

However, at a certain point, you may notice a diminishing return. As you spend more and more time hunting for deals, it may start to become a bit draining. Additionally, spending more time on them may only produce a very small reduction in cost.

At this point, it may be time to consider a new strategy!

Increasing Your Income

There are only so many ways to live frugally, but there are many ways to increase your income. That is why this is such a powerful concept. For most of us, there are two basic ways to earn more: increase your income or create additional income streams.

Frugal living helps, but having a second income can be even more effective.

Increasing your primary income would mean increasing your salary at work. I realize this is easier said than done, but do your homework. It could be that you aren’t being compensated fairly when compared with other workers in your city with the same level of experience.

If asking for a raise is not possible at the moment, there are other things to consider, such as:

  • Industry-relevant certifications that would make you more valuable to your team.
  • Spearheading projects in your area of expertise that prove you are an asset.
  • Working extra hours. While this one is not my favorite, it could be worth considering if time-and-a-half is a possibility for you.

These are a few ideas for increasing your primary pay, but what if that still seems impossible?

Hustle, Hustle, Hustle

While it is difficult to give exact statistics on side hustles, I wouldn’t doubt their legitimacy in the workforce today. For what it’s worth, some studies have shown that as many as 85% of people have side hustles.

Now, I must admit that this is not something I am pursuing at the moment, at least partly due to working on this blog. But I do happen to have an entire Pinterest board dedicated to side hustles. From bookkeeping, to freelance writing, to sonography and many more, there are all kinds of ideas out there.

I also regularly hear people mention ideas such as selling on Amazon and eBay in various Facebook groups. I haven’t researched these ideas myself, but the point is that there are almost endless ideas out there.

If you want to make some extra cash, there is probably a way to do it. The important part is finding what works for you.

Frugal Living Is All About Balance

In closing, I’d like to reiterate the point that, indeed, it’s about balance. Being frugal is certainly a virtue, but frugality also has its limitations. If you find your frugal living habits are coming up short, it might be time to think about ways to increase your income.

And the great thing about increasing your income is that you can dedicate as much time to that goal as you like. In other words, if you have a jam-packed schedule, you don’t necessarily have to spend 40 hours per week on it your side project. If you only have a few hours, that’s perfectly fine!

I realize this may still not work for everyone, but even just a few hours of effort into increasing your income could go a long way.

At the end of the day, it’s about the balance between extremely frugal living and earning more. If you can find that balance, you’ll be well on your way to a better life.


Hey there. My name is Bob Haegele and I'm a personal finance writer who has been freelancing since 2018. Since then, I've built a six-figure career as a freelance writer. My work has been featured in Business Insider, Forbes Advisor,, USA Today, and many other outlets. Interested in starting a blog of your own? Check out my post on starting a blog.

This Post Has 20 Comments

  1. Janita

    Amazing post once again Bob!! This is so true, and infact my husband just started with some side jobs! While it does cut into our family time, it really does make sense with what we are trying to pay off! It actually took him a little while to convince me because I really couldn’t see this side of it! I think this post is written perfectly and will really help people understand!!

    1. Bob

      Like I said, all about balance. 🙂 That’s cool that he’s doing that though. I am trying to get ahead of schedule on blogging so I can look for freelance writing work!

  2. Steph

    Great post! I’m working very hard on job hopping and working OT to increase income. I have not been having much luck. 🙁 it feels like high paying jobs keep getting harder and harder to find!
    I agree frugal livin can only go so far, but it is also much harder to increase income than I had anticipated!

    1. Bob

      Thanks Steph! Have you looked into side hustles at all? I really want to start doing that so that I can “walk my walk” when talking about them. But I definitely hear a lot about people making extra money on the side.

  3. Kristopher lee

    Great post. I also prefer the balanced approach of earning more and spending less.

    1. Bob

      Thanks for the comment Kris! I’m glad you agree.

  4. Sarah

    Wow, great post!! It really isn’t that hard to make an extra $5,000 a year when you put it that way! Even refinishing furniture could potentially increase your income $5,000. It could pay for my son’s braces!

    1. Bob

      Hi Sarah, I’m glad you liked it! And isn’t that just so very true? It’s really funny how sometimes, personal finance can come down to thinking about things the right way. Sure, it still requires effort on your part, but knowing is half the battle!

  5. Xrayvsn

    It has been said that the path to financial wealth is similar to a football game where you need a right combination of offense (income) and defense (saving/frugality).

    Just because you have a high power offense does not mean you win the game if your defense is like a sieve. Many doctors I know fall into this predicament. They make incredible amount of money but because of lifestyle inflation they are living paycheck to paycheck.

    In your family of 4 example there is only so much defense you can have but if you don’t have some type of offense you can never score and win the game.

    1. Bob

      But, but, but…”defense wins championships!” 😉

      I like that analogy though. Really emphasizes the fact that having a balanced approach is very important.

  6. Dave

    As you wrote, balance is the key ingredient. Living a frugal life will free up money for savings. That approach only goes so far. Always try to increase your earnings. It can be done at you job, with side hustles, or both.

  7. Just 500 hours to add $5,000 is a bit misleading to me, why?

    Just 500 hours => that takes 125 days of the year working 4 hours per each of those days. The 5K isn’t including taxes either, so for some these additional hours (~20 per week) may not be worth it if they have a family.

    Although overall, I agree with your point to increase income as a way to increase your living standard (I too make more than average for my age), a $10 per hour side-hustle may not be as rewarding as working those hours to get a promotion, build your skillset in your field, or start a side-business.

    Balance is key!!

  8. Jim

    You say you don’t have a side hustle but this blog is definitely a side hustle! I think starting a website about a topic you’re passionate about is the best side hustle anyone can do. It’s pretty fun to do, you get to share your knowledge with other people who want to learn and it can be totally passive, making money when you’re not working on it.

  9. Lyn

    I do see some people win big from a small income but it’s very rare (and I believe it’s hard) It was easy for me because although I earn the average, I have no commitments of whatsoever. Without that, no frugality could help me.

  10. Ms. Fiology

    Yes!! I have found career hacking, termed coined by ESI, to be well worth the effort. Frugality can certainly help some but there is a limit there. Focusing on the other side of the equation, for me, has had a bigger payoff. However, that coupled with frugality is golden.

    1. Bob

      “Career hacking” is a good term for sure. I’m glad you agree with the overall concept here. 🙂

  11. Linda

    Great article! I agree, you can only be frugal to a point and adding income makes more sense. I guess I need to find another gig???

    1. Bob

      Yep, it’s tough but I’m still working on finding my first side hustle. 🙂

  12. Drbreatheeasyfinance

    Excellent post. The formular to wealth has always been the combination of living below your means and earning more money. Like you said “a balance”. I read it somewhere that the average millionaire has 7 streams of income. Muscle up the hustle.

    1. Bob

      7 is a lot of income streams! I certainly don’t have that. But would like to have more for sure.

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