Sometimes, listening to an interview or podcast gives you a direction rather than just inspiration. Hearing about someone else’s journey to achievement inspires many to want to do the same. The tips, tricks and recommendations suggested in the content are followed by some.
One such mention was Morgan Housel’s International Bestseller, The Psychology of Money, by actor Arvind Swamy in a September 2024 interview with anchor Gopinath. He recommended the book as a ‘must-read’ for youngsters, as it explores how one’s relationship with money extends far beyond the bills we earn to sustain ourselves. It hints that this connection is also a way we relate to nature itself.
“Quite a bestseller, the book outlines a human’s relationship with money, his means to survive in a world where life is dictated by this resource,” says Shankar Gopalakrishnan, a young employee. As a youngster landing a new job he has fresh challenges — manage his finances, repay his educational loan, and yet not compromise on the pleasures of life.
Shankar had his life planned out just like Arjun from the 2011 film, Zindagi Na Milegi Dobara. He shares, “What I wanted was good savings by the time I hit 50 — a life where I would not have to compromise, and an order to whatever I do without making me feel guilty. My upbringing also had a lot to do with such an analysis.”
Does upbringing truly have a role to play in how an individual views spending money for fulfillment or needs? For Monika Dineshkumar, the answer is yes. She says, “My parents were rigid and conscious spenders. My father used to tell me that money is meant for saving and not for spending more than what you need. I have followed this principle to date because I am clear with what my needs are and prioritise them.”
Shankar adds, “If we use it just for our needs, it relaxes us. Otherwise, the chaos that results cannot be managed beyond a point. So, the question finally is what actually our need is and what our greed.”
This question has been circulating globally for a while. It gained momentum post pandemic and gave rise to a new trend called the ‘underconsumption core’ — aka the ‘frugal living’ trend. Mostly driven by social media, this movement has been in vogue of late, with influencers advocating the value of buying only what one truly needs, reusing accessories, finding use in things otherwise discarded, and generally living a life where money need not be splurged to find joy.
This appears ironic in a world also filled with influencers telling people what to buy and how to choose between products. However, while influencers and their followers may seem restricted to a generation, the trend has taken root more broadly.
“I see a lot of people around me giving in to the fancy display of products on Instagram. They say they feel ‘FOMO’ if not and the peer pressure is real,” shares Sreeranjini N, an Asic engineer. But would she give in to her peers? She says, “Discipline is important. Before buying anything, I question myself: Is my money worth spending on this materialistic thing or experience? Am I doing this to look cool or is it actually going to make my life easier?”
Concurring, the author of Money Doesn’t Grow On Trees, Lavanya Mohan, points out, “Discipline is less about saying no all the time and more about setting up a system that says yes, but later. The goal isn’t to be frugal for the sake of it. It’s to live well today and tomorrow.”
According to Sangeeta Pillai, a wealth management consultant who has switched from flashy to frugal, this shift is because of the general attitude towards wellness, sustainability, and living close to nature that has become a trend. Earlier, her weekends were spent in places that required big spending. “I would splurge on food, drinks, and stay at places that cost me a lot,” Sangeeta recalls. She continues, “I always felt it’s my money and I could spend it the way I wanted. But Covid changed all that, especially when my pay was cut by half. Life taught me nothing could be taken for granted, and also the value of every little thing around us.”
Sangeeta believes that this trend to plan life as per one’s needs, not greedy wants, must be passed down generations. The current generation is in the notion of “romanticising” every little event. “We hustle everyday to find contentment in life via spending on various things and hold our heads in between our hands when we go over-budget. What is the spending giving us? What do we do with the lavish bags and costumes then?” questions Narmadha M, senior associate at Atos.
Lavanya suggests individuals start by asking, “Where is my money going without my permission? It could be the subscriptions you’ve forgotten about, food delivery apps you swear you’ll stop using tomorrow, and wardrobe upgrades driven more by Instagram than actual need — these are the quiet killers.” To avoid them, she suggests to “Put intentional speed breakers in place — like moving your money out of your spending account right after payday. Out of sight, out of swipe.”
Are these suggestions even practically possible? Can you overcome the impromptu bumps you come across in life? Does this planning in advance work for travellers who are in one country on day 1 and another on day 2? For travel enthusiast Ajayan G, frugalism means planning his trips meticulously. “Even if it is a spontaneous trip, I try to look for places where I can get quality services at affordable rates. And surprisingly, I have found that if one knows how and where to look, a good trip to the Himalayas, for instance, won’t cost more than `10,000,” he says.
Moreover, there are many stays available out there that pay for your stay, food and safety if you volunteer for them. “I recently went to a village where they offered to provide boarding, lodging, food, to explore nearby villages, etc. In return, they asked me to spend a couple of hours with the guests — chilling and vibing with them,” says Lavina Daryanani, head of news and content at blocmates. and an avid traveller.
Lavina shares that there are various options like these but “People really do not know about it.” The other thing she practises and recommends is not to travel during the peak season as it can be “annoying”. “There would be too many spots to cover but you could not because of the crowd,” she says.
Hence, she travels to the places surrounding the region that attracts lesser crowds and provides almost the same experience. For example, “Many people go to Bali. There is a less-explored island called Lombok. It is also cheaper than Bali.” If international travel seems scary and a huge step, Lavina suggests, “Start with your nearest tourist spots. Then, slowly push your boundaries and borders.”
You can also go frugal in choosing what to do in the cities you travel. Ajayan adds, “There are so many youth hostels and backpacking groups that can help one find affordable, neat accommodation. There are ways we can get around using public transport or share-autos. Such kinds of travel are far more memorable. And there is a sense of achievement.”
Planning life as per one’s needs also includes home settings, and minimalism has become popular in home décor and architectural styles, notes interior designer Athira Jose. “Homes reflect who you are. So now, there are garden corners set inside homes, and Zen corners created within living spaces,” she says. “Also, aesthetics is returning to old styles, where the furniture chosen is cost-effective and resembles that of a 1930s home, rather than puffy plush sofas and ornate chairs. So, a home is seen as a place that should reflect your core more than what you want society to see you as.”
Well, at this point, it’s worth recalling Walt Whitman’s reflections on life after he suffered a paralytic stroke: After you have exhausted what there is in business, politics, conviviality, love, and so on — have found that none of these finally satisfy, or permanently wear — what remains? Nature remains; to bring out from their torpid recesses, the affinities of a man or woman with the open air, the trees, fields, the changes of seasons — the sun by day and the stars of heaven by night.
Avoid these mistakes
Here are some common frugal living mistakes that people make, as noticed by Lavanya Mohan
Mistake #1: Equating frugality with deprivation. You cut everything — social life, birthday gifts, even the good shampoo — and then crash-spend in frustration.
Mistake #2: Focusing only on small ticket savings while ignoring the big leaks (like poor tax planning or bloated EMIs).
Mistake #3: Not budgeting for joy. You will want a trip, a nice dinner, a new dress. If you don’t account for these upfront, they’ll show up as guilt-laced expenses later.
The difference between wants and needs
Declutter regularly
Go for value over price
Draw up a budget
Keep savings at 30% of earnings
Focus on quality
Ask if what you need is good for you
Avoid credit as much as possible
Know about customer rights and resources
Audit spending periodically
Make your online cart sit before hitting that purchase button
Buy one when you have money to buy two
Plan your meals, buy groceries accordingly
Use a smaller car if its a small family
Eat healthy, eat out less
Do your own work as much as possible
Keep a minimalist wardrobe
Draw up a shopping list before you actually go shopping
Use library instead of buying books
Use public transport/walk whenever you can
Exercise, but not at a heavy cost
Avoid unhealthy habits like smoking and drinking
Prepare your own gifts
Use reusable pens and stationery