Podcast 44: Abundance vs. Frugality Money Mindsets
In this episode, Jess and Laura discuss two disparate money mindsets: abundance vs. frugality. First, we dive into a definition of each:
- Abundance money mindset: Someone with an abundance mindset believes that there’s enough to go around — enough time, enough money, enough energy. People with this mentality believe that spending money on things you value is okay, because you can always make more money.
- Frugality money mindset: Someone with this mentality exhibits the quality of being thrifty with money, food, or other goods. They believe in saving and only spending money when necessary. Oftentimes people with this mindset will go for the cheaper option whenever one is available.
In this podcast, we share how we have used both mindsets at different points in our lives. For example, a new college grad might expect to be more thrifty during the early years when student loan payments are high and salary is low. Once your pay increases, however, it can be tempting to match your lifestyle to this new raise in income.
We believe that neither mentality is always right or wrong. Rather, it’s all about the phase of life you’re in and determining which things you value enough to spend more money on.
Check out the full episode for examples of abundance vs. frugality in action to help you decide which one to employ in your life.