{"id":1592,"date":"2016-06-02T00:00:00","date_gmt":"2016-06-02T00:00:00","guid":{"rendered":"https:\/\/qa.simplifimoney.com\/blog\/frugality-career-tool\/"},"modified":"2022-08-08T16:56:36","modified_gmt":"2022-08-08T16:56:36","slug":"frugality-career-tool","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/frugality-career-tool\/","title":{"rendered":"Frugality is a Career Tool"},"content":{"rendered":"

I have earned a lot of money in my life. But I have never had an extravagant life. I don\u2019t own a house. I\u2019ve never bought a new car. I didn\u2019t buy a new piece of living room furniture until I was 40, and I do not own a single piece of real jewelry. What I have spent money on was always intended to help me with my career. That was so I know that I can always earn money doing something I love. I leased a BMW when it was clear that that mattered when it came to making deals in LA. I hired a stylist when I realized my clothes were holding me back in NYC. In Madison I have tons of household help so my kids don\u2019t have a crazy schedule because of my work schedule. I am convinced that frugality and getting budgeting and saving help<\/a> are key qualities for a successful career.<\/p>\n

\u00a0<\/p>\n

Here is why frugality helps your career:<\/h2>\n

1. Spending money is generally a distraction<\/strong>. We know this. That people use it as therapy. People use it to fill holes they perceive in their lives. But the psychic energy it takes to spend money actually distracts us from what matters to us. Pay Pal reports that people wish their significant other would spend less money on Valentine\u2019s Day. This encapsulates the whole problem to me.<\/p>\n

2. Spending money is a vehicle for overcommitting<\/strong>. The biggest example of this is graduate school. The people who do best in a bad economy are those who are flexible about the types of jobs they can take and the types of careers they can move into, according to Philip Oreopoulos, professor of economics at University of Toronto. This flexibility is specifically limited if you go to graduate school \u2013 you commit two, three, four years to a given career whether or not it\u2019s going to pan out for you in the long run. And you commit to paying back school loans, which means you need to take a job that earns enough to pay those loans.<\/p>\n

3. Spending money limits possibilities<\/strong>. If you invest in an expensive bicycle because you\u2019re going to do triathlons then you limit your ability to take off more time from work to actually train for the triathlon. In most cases, renting a house is better for you than buying one: If you buy a house, you cannot easily downsize, you cannot as easily relocate, and you end up limiting your earning power.<\/p>\n

4. Entrepreneurship is a safety net if you\u2019re frugal in your home life<\/strong>. Careers today are unstable, and while companies used to provide safety nets for employees, today we have to create our own safety nets. The best way to do that is with entrepreneurship. But starting your own company is nearly impossible if you have high income requirements. Startups don\u2019t provide high incomes at the beginning.<\/p>\n

As I write this, I think about my friends who spend a lot more money than I do. I have friends with really nice houses, friends who take super fun vacations, and I have friends who would not be caught dead in the clothes I wear to work (for example, plastic rain boots because I don\u2019t want to pay for snow boots.) My friends would say there\u2019s a compromise: You don\u2019t need to invest everything in your career. You don\u2019t need to give up all the creature comforts of life. You can still have a good situation with both. Maybe it\u2019s my obsessive nature. I\u2019m willing to make extreme tradeoffs. I wrote earlier about wanting to be an expert. About how it takes a singular, daily focus. And I think I have had that with writing. But in order to do it, I have given up a lot. I\u2019m not sure if that\u2019s right. Do we hear about Mozart playing kickball? I know, there wasn\u2019t kickball. But if there had been, he wouldn\u2019t have played it. Because you give up stuff. So I guess what I\u2019m saying is that being an expert in something requires frugality. It\u2019s not just a spending frugality. It\u2019s a focus frugality. It\u2019s the recognition that spending money is actually a distraction from the passion at hand. So the less you spend, the less you\u2019re distracted.<\/p>\n

Frugality is a Career Tool <\/em>was a guest post provided by Penelope Trunk<\/p>\n","protected":false},"excerpt":{"rendered":"

I have earned a lot of money in my life. But I have never had an extravagant life. I don\u2019t own a house. I\u2019ve never bought a new car. I didn\u2019t buy a new piece of living room furniture until I was 40, and I do not own a single piece of real jewelry. What I have spent money on was always intended to help me with my career. That was so I know that I can always earn money doing something I love. I leased a BMW when it was clear that that mattered when it came to making deals in LA. I hired a stylist when I realized my clothes were holding me back in NYC.<\/p>\n","protected":false},"author":17,"featured_media":1593,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"","_seopress_titles_title":"Frugality is a Career Tool | Quicken","_seopress_titles_desc":"Spending money is generally a distraction. We know this. That people use it as therapy. People use it to fill holes they perceive in their lives. But the psychic energy it takes to spend money actually distracts us from what matters to us.","_seopress_robots_index":"","inline_featured_image":false,"footnotes":""},"categories":[108],"tags":[],"class_list":["post-1592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budgeting-savings"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.quicken.com\/blog\/wp-content\/uploads\/2022\/08\/money_tree.jpg","_links":{"self":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/1592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/comments?post=1592"}],"version-history":[{"count":1,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/1592\/revisions"}],"predecessor-version":[{"id":2669,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/1592\/revisions\/2669"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media\/1593"}],"wp:attachment":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media?parent=1592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/categories?post=1592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/tags?post=1592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}