Frugalism

Frugalism is a philosophy of life in which you consciously spend less – not out of necessity, but to become financially free sooner.

The idea: instead of working for 30–40 years, frugalists reach financial independence in 10–20 years through extreme savings rates (50–70%). The money saved is invested in ETFs – the returns cover living costs.

Typical strategies:

• Housing: a small flat, a shared flat or a tiny house instead of a detached house
• Mobility: bike instead of car, public transport, car sharing
• Food: cook yourself, meal prep, eat out less
• Consumption: buy second-hand, repair instead of throwing away, minimalism

Criticism: frugalism works best with an above-average income. For low earners, a 70% savings rate is unrealistic. And: don't forget quality of life!