frugal people keep prices down

Frugal people keep prices down

People often like to make fun of the frugal, making them into caricatures of miserly people who only eat rice and beans and “suffering” for no reason.

But think of it this way: a certain amount of frugal people in the population helps keep prices in check.

The behavior of the frugal can actually help us all:

Frugal people comparison shop, spend less, and in turn, make businesses more competitive.

Think of them like a price police. Imagine that if there were NO frugal people, prices may be even higher than what we have now.

Here are some other second-order effects of frugality:

Encourage business competition and generic brands: Frugal consumers tend to prioritize value over brand names and have no issue with buying generic, no-name brands (especially medicines) that do the same thing. This encourage businesses to focus on providing high-quality, affordable products and services, which can help keep prices down for everyone.

Reduced waste: Frugal consumers often prioritize reducing waste and making the most of their resources. This can contribute to a more sustainable economy and slows down the pace of consumption. Speaking of which…

Culture: Frugality is not about saving money: it’s a mindset. There’s less emphasis on materialism, consumerism and keeping up with the Joneses. The frugal are a force that makes sense for other values to emerge, like moderation and sustainability.

The wonderful thing about frugality is that you don’t have to do it.

Instead of being judgey, consider that the frugal can help us all.

And just to ensure we’re on the same page…frugal is different from being cheap.

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