By Mark W. Fowler

“There is no dignity quite so impressive, and no one independence quite so important, as living within your means.” —Calvin Coolidge

Let us consider these economic facts:

1. Chapter 13 individual bankruptcy filings totaled 85,390 during the first half of 2023, which was a 23% increase compared to the first half of 2022.  

2. The U.S. budget deficit totaled $2.77 trillion for 2021, the second highest on record but an improvement from the all-time high of $3.13 trillion reached in 2020. The total U.S. debt is over $33 trillion.

3. Forty-two percent of Americans have less than $1,000 in savings as of 2022.

Our economic system has elevated millions out of poverty, but this prosperity has come at significant moral cost. Mishandling and misunderstanding the use of money corrode the soul. Disagreements over money between spouses sunder marriages. Abuse of credit leads to a tide of bankruptcies. Envy of the apparent prosperity of others leads to resentment.  Humans have a remarkable ability to find the wrong path in all forms of endeavor, and the handling of money and the accumulation of property are no exception. Perhaps it is because we assess the value of others and ourselves based not on our worth as humans but on the amount of money we earn or property we have accumulated, falsely equating wealth with worth.

On the other hand, respecting and preserving property rights is intimately tied to human freedom and dignity. Societies that do not honor property rights tend not to value freedom either. However appealing may be the mantra of Marx of “From each according to his ability to each according to his needs,” the fact remains that societies based on that model invariably fail regardless of the intent behind them. St. Paul had to admonish the Christians at Thessalonica when he learned that some members of that communal society preferred the ease of prayer and meditation to work. Collectivization of agriculture in 1930s Soviet Union resulted in the death of millions when peasants were forced off the land. Only when peasants were allowed to grow their own food again was the famine reversed.

There is a correct attitude toward money, and that is to live within one’s means. We call this by many names: frugality, stewardship, temperance, self-control. An investor friend of mine sees frugality as indispensable to right living. He would know. Debt is a cruel master in that it limits choices, it is costly, and it tempts people to live beyond their means. The investor and wildlife enthusiast D.W. Barker says, “It’s not how much you make, it’s how much you save.”

Governments fail in the execution of state craft as soul craft — encouraging civic responsibility — when they spend profligately, encourage debt in the pursuit of education, fail to adequately fund pensions, and degrade currency with inflation.

The Greatest Generation, having endured the Depression and World War II, personally knew the importance of frugality. The wasting of anything was frowned on, the purchase of frivolities abjured. People were compelled to be careful with money then. They sought value in their purchases. Sears Roebuck grew by offering value for money and consumers knew it. People saved for a rainy day, free largely from crushing debt. The smart ones did.

Too many are enslaved by consumerism and the debt it brings with it. Belongings represent or are falsely thought to represent status or happiness.

It is possible to live comfortably, save for retirement, and enjoy peace. At 3% interest over 45 years, a 20-year-old can retire a millionaire by saving $125 per week. Living frugally means avoiding status and impulse purchases, making sacrifices, and living a disciplined life. It requires no government intervention and in itself is ennobling and enabling. Oliver Goldsmith said, “If frugality were established in the state, and if our expenses were laid out to meet needs rather than superfluities of life, there might be fewer pleasures, but infinitely more happiness.” More happiness, fewer pleasures. That is a bargain.