She Strengthens

The Pitfalls of Extreme Frugality: A Cautionary Tale

As a young adult, I was determined to reach my financial goals as quickly as possible. I believed that sacrificing everything in the early stages of my life would lead to a happier and fuller life later on. However, I soon discovered that excessive frugality can be just as harmful as reckless spending.

My Journey to Financial Awareness

My fascination with personal finance began in my teenage years, inspired by books like Rich Dad, Poor Dad. By college, I was already investing in the stock market and seeking advice from financial experts. I did everything a responsible young adult should do – saved aggressively, supported my parents, bought insurance, and invested in various financial instruments. But this came at a cost. I missed out on social experiences, felt uninteresting, and struggled to connect with others.

The Dark Side of Frugality

When I pursued my MBA abroad on a full scholarship, I finally had the opportunity to enjoy my life. But after years of deprivation, I didn’t know what I wanted, and I became selfish and reckless with my spending. I shopped excessively, bought high-priced skincare products, and ate out at expensive restaurants. This reckless behavior led to financial chaos, and I had to start from scratch when I returned home.

The Importance of Balance

I’ve come to realize that completely depriving oneself of financial flexibility can lead to unhealthy consequences. Either you become a “Scrooge” with plenty of money but no fun, or you indulge in financial binges later on. Both approaches are detrimental to one’s financial well-being.

Lessons Learned

Through my experiences, I’ve developed a more balanced approach to personal finance. I’ve learned to forgive myself for past mistakes and to focus on mindful spending. I prioritize practical fashion, take care of my physical and mental health, and allocate a budget for skincare. Before making a purchase, I ask myself how it will impact my life and whether it’s worth the financial cost.

The Key to a Healthy Financial Life

Managing finances is not a one-time solution; it’s a lifestyle. Understand your needs and wants, and be intentional with your spending. A healthy financial diet requires careful planning, just like a nutritious diet for physical health. By adopting a balanced approach, you can achieve financial stability and enjoy life’s experiences without sacrificing your well-being.

The Author

Rocel Ubongen is a business consultant based in the Philippines. She holds an MBA from Japan and is passionate about learning, growth, and personal finance. Her experiences have taught her the importance of balance and mindfulness in achieving financial stability.