minimalist-living

Millionaire reacts to spending of NYC barista

2019-09-02 15:34 #0 by: Evelina

This millionaire does a reaction video on the spending of a NYC barista who makes 15k a year.

She’s in over 5k debt and is spending more than she has.

He brought up some interesting points, for instance, pointing out ways that he would be more frugal and insinuating that his frugality has contributed to him being a millionaire.

I don’t know who this guy is but it got be thinking about how minimalism can in some ways help personal finance.

However, I do not agree that spending less and being more frugal is always better as this guy seems to think. I mean I think we can all agree that 2$ underwear from amazon isn’t a good idea lol. Don’t know what he was thinking there.

I think if you’re wearing m something everyday you might as well buy a few decent pairs that have good quality as long as you’re not just putting it on your credit card.

What do you guys think? Can you think of times when frugality is a good approach to minimalist personal finance and other times when it is better to invest in something that costs more but will perhaps save money in the long run?

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2019-09-02 20:19 #1 by: Leia

I completely agree with you there about investing in quality items! 

I would say I was an extremely frugal student in comparison to other classmates.  I'm proud to say that after working part-time and budgeting smartly I have managed to equate a healthy sum of savings whereas most of my friends graduated with minus a few thousands pound into their overdraft. They would argue that its impossible to save a large sum of money as a student but I did it without any financial help from family! So I understand that being frugal can save you a lot of money but perhaps I wouldn't go as far as saving you millions!

It's little things like explaining to friends you can't afford an expensive gift,  make them a card, a cake or buy them a drink, there is no need to have to put yourself further debt!

All the best, Leia

Host of  Gluten-Free Living | News  | English Language Heart

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2019-09-02 20:37 #2 by: jordan

I think that it almost is its own type of minimalism in a way?

Spending more on items that you use frequently (lets use earphones as an example) that last longer as part of being higher quality means that your one $100 spend eventually makes sense after you buy your 10th $10 dollar pair. What's more is that you have that one set, instead of storing the rest away when they no longer work. Some people do this with things like merino wool tops and shirts, and do their laundry more often, meaning they have less belongings overall?

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2019-09-02 21:08 #3 by: Evelina

#1 I agree it’s all about the little things that add up in the end! I’ve never understood people going into crazy amounts of debt for no reason. But in a way, I think it is a habit that people have and it slowly or sometimes quickly piles on, especially when life doesn’t always go the way we want it to. A lot of my friends after high school got there first credit cards and maxed it out just going shopping like crazy, buying coffee and food out everyday, and on top of that buying a brand new car with only working a part time job. They would have their parents co-sign on the loan. Then complain how they don’t have money and are in debt. 😱 I think that kind of spending behavior is really unhealthy.

#2 I totally agree! I think is so important to determine when to splurge on certain quality items that are used daily or frequently during the week.

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2019-09-06 08:26 #4 by: Niklas

#0: I think you are both right, but not in every situation. 🙂 Being frugal and spending less is a good general rule, I guess. Spending less can be about buying good things when they are cheap. Your idea of buying things that last, and pay more, can also be an excellent general rule to save money. It all depends on what items you are buying. You can pay 30 dollars for a pair of men’s underwear, and you can also find good quality men’s underwear for 4 or 5 dollars (in Sweden) if you know what good quality looks like. You won't get a high profile brand, but almost no one will notice. It is possible to do good quality cheaper.

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