Personal Finance blog The Simple Dollar posted the question “Does Frugality Beat Inflation?” The answer found was a qualified yes: being able to produce at least some of what you need will often outpace the rate of inflation on many goods and services. The catch is that you have to be willing to make the lifestyle changes that come with being a producer.Photo by Flickr user mjmonty
The most popular examples of this are usually gardening and power generation, but the recent rise of DIY and repurposing enthusiasts also point to the simple fact that the less you buy the less that inflation directly impacts your life. The cost of hiring someone to fix your plumbing or remove malware from your computer will go up with inflation, but taking the time to learn these skills yourself saves you money both now and in the future as service costs rise.
You can also beat inflation with frugality by making everything you interact with more efficient. One example we’ve covered before is taking the time to make a few household changes that save a lot of energy.
As Trent Hamm at The Simple Dollar says,
Another point worth noting is that the more self-sustaining you are – meaning the more free you are from inflationary pressures – the more you’re free from many other types of modern pressures. You have less need to have a high-paying and stressful job. You have less drive to own material possessions that mostly serve to impress others, as others have less of an impact on your economic future.
Of course we can’t all live like the Amish and make most of the items in our lives, but we can all take a few steps to become a little more self sufficient.
Does Frugality Beat Inflation? [The Simple Dollar]