Well I don’t actually have a punchline, but I’m sure there is a joke in there somewhere. So, now that I have your attention, I want to use this opportunity to breakdown the often intertwined and confused definition of each of these words that are commonly used in the financial independence community.
While also talking through my own transition from a frugalist to a valuist and how it allowed me to make some major life changes that improved my own happiness. And because per usual this post grew to be too big, I put my transition in separate article.
Definitions:
Frugalist: Someone who wants to spend less.
Everyone is going to have different working definition of frugalism but at the end of the day the frugalist is trying to save money in all aspects of their life.
The frugalist saves money in everything they do. They bike instead of drive, they keep the heat off in the winter (dad), they don’t eat out, they make their own entertainment, they re-use, they borrow, and they fix rather than buy.
To some extent, every person on the path to financial independence has some frugalist in them or at least started out that way. And it’s not a bad thing. Look at that list, the frugalist is often better for the environment, contributing less to landfills, and decreases the funding to corporate America. All while saving more.
This allows the frugalist to live off less money. Some are frugalists by choice often living on well over half their annual income and spending only a fraction of the annual amount spent by the normal American. Thereby allowing them to retire earlier, work part time, or taking a lower paying job.
While others, are frugalists by necessity. Living on as little as they can often by no choice of their own, frequently due to environment or hardship. Either way, the frugalist tendencies are very similar.
A frugalist finds happiness in making a dollar last
Minimalist: Someone who wants to own less.
The minimalist hates clutter. They want to own the least amount of physical objects as possible, only holding onto what they need and what they use regularly.
Why own a 3 bedroom home when you only use 1 room of it? Why own an entire word robe of clothes when you can only where one outfit per day? Why own this tool, object, or machine when you only use it once or twice per year and could rent or borrow it? And why hold onto large sentimental objects when you have the memories or pictures surrounding them?
The minimalist sees how people in America accumulate stuff and they want out. They often use rules to help dictate whether they hold onto or get rid of an object such as the 90-90 rule. If you haven’t used in object in 90 days or won’t in the next 90 days, then it’s okay to let go of the object.
Minimalist have the ability to up and move easily as their items are few. Minimalists are very good at living off less, often finding it easy to live out of a car or a backpack for stretches at a time.
Minimalists are okay with not having internet, cable, or basic “necessities” most people assume are standard. If there is something they want/need, a minimalist is okay going to a coffee shop, restaurant, or public library if it’s not something they need daily.
A minimalist often doesn’t have the same sentimental value of an object, especially if that object takes up space. They more so see the functionality or use-fullness of an object over the self value.
The minimalist is good at finding value with every thing they purchase. They are okay to spend the extra dollar on quality products that they know they will use forever.
A minimalist finds happiness with less.
Valuist: Someone who lives intentionally, spending money on things that they value.
I was first introduced to the concept of a valuist by the guys over at ChooseFI and I really liked the definition.
A valuist doesn’t necessarily worry about the specific price, or the space an object takes up like that of a frugalist or a minimalist. A valuist asks themselves what it is that they value, and what will bring them happiness before they make a purchase or financial decision.
A valuist can come in many forms as each person will value different things. The valuist sits down with themselves and/or loved ones and critically thinks about what it is that truly brings them joy.
A valuist may buy expensive craft beers, vacations, nice cars, etc. The valuist determines what spending areas in their life bring them the most happiness or value, allowing them to cut or be more frugal in other areas of their life that bring less value.
A valuist live intentionally, they don’t purchase to purchase, throw out to throw out, or save just to save. They make each decision intentionally, thinking about what effect that decision will have on their life. They understand that resources are always limited, but that their own happiness should always take precedent.
The valuist finds happiness in pursuing happiness.
Example
So let’s take you through an example of where I fall on the spectrum of varying topics
Time: Valuist. At this juncture of my life, time is my biggest value. Most of my decisions both financial and otherwise put a significant emphasis on time. Whether it’s more time with loved ones, more time to write for the blog, or more time to do whatever else it is I want to do. It’s the premise of my pursuit to FI.
Cars: Frugalist. As long as my car drives from point A to point B without breaking down, I could care less about what it looks like or its specs. I just want no car payments and good gas mileage.
Clothes: Minimalist. Check out my 2018 spending to see how much I spent on clothes and shoes for the year. I want to look nice, but am not willing to spend to fill a wardrobe of clothes that will inevitably sit there for years until I donate it to goodwill. Much of my clothes are clothes that I have owned for 10+ years
Groceries: Valuist. I still am very frugal in this category as my grocery bill is usually very cheap as I am intentional with where I shop and choose to make large portions for my meal prep during the week. However, I value health, so I am okay spending a little extra for fresh produce and non-processed foods.
Fitness: Frugalist. I value fitness/working more than most things in my life. However, I also am very self motivated and only need access to a basic gym membership plan costing me $30/month.
Travel: Valuist. I value seeing the world and experiencing different cultures and lifestyles. This is probably my largest spending category now days. I still am frugal while planning my trips finding good deals on flights, and travel hacking whenever possible but I am still willing to spend on these experiences.
Housing: Minimalist. As long as I have a place to sleep and am safe, I can live anywhere as you will start to see as I release more of my traveling physical therapy assignment stories in the future. I have slept in RVs, Air B&B’s, and countless air mattresses throughout my travel. Although, as family begins to get closer, I see this category slowly turning towards valuist as it is not just my needs anymore.
And you can take nearly any category of spending and break down where you fall on the spectrum, I just chose to cover the big ones in my life.
Stereotypes
I think it’s important to point out that these are all stereotypes which means that just because you may identify with one group or another, these descriptions likely don’t describe you perfectly as a person.
Most of us don’t fit perfectly into one box or another, most of us identify with one or multiple aspects of each group and may strongly disagree with others. And that’s okay.
I share these with you to challenge you to look at your own life a little differently and see if there are some aspects from each group that you could apply to different categories of your life to boost your own happiness. Because at the end of the day that’s all we are all chasing.
This post could also be used so that you can better relate to family/friends/etc. who align more strongly with one group or another. You never are going to perfectly match someone else’s alignment but understanding them will make coexisting that much easier.
Conclusion
Overall, I value experiences and even more so experiences with people I care about. Maybe experiencist is the best definition for me.
Regardless, at the end of the day, the definition doesn’t matter and it’s more about attempting to live more intentionally, focusing in on your own happiness. Because once you find your own happiness, it’s that much easier for you to be able to contribute towards someone else’s.
As always, comment below with your thoughts, questions, or concerns. If you have any specific questions feel free to message me here.
