Amazon tells staff to “double down on thrift.” should you

Image Source: Getty Images

The new Amazon CEO warns that it could be a “difficult and tough” road ahead.

Key Point

• Amazon stresses the importance of thrift as it navigates uncertain economic times.
• Thrifty means embracing the mindset of saving money, but it doesn’t necessarily mean giving up everything you love.
• Conscious spending helps you live within your income and build wealth.

Amazon is tightening its belts as rumors about economic troubles and a possible recession around the world begin to affect its business. has become For example, one slide of his at a recent all-hands meeting told employees to “double down on thrift.”

according to insider, speaking to staff after accessing the conference slides, Amazon’s new CEO Andy Jassy told employees the company needs to be more streamlined in 2023. This shows a difficult and turbulent economy ahead of us,” he said.

What is thrift?

For big companies like Amazon, frugality means cutting costs, doing more with less, hiring fewer people, or even freezing them altogether. For us as individuals, it’s about embracing the mindset of saving money. That might mean fixing broken things instead of buying new ones, making meal plans to reduce food waste, or using cashback apps to maximize rewards.

But frugal living is more about the mindset than the individual actions you take. Living frugally doesn’t mean embracing your inner Ebenezer Scrooge and refusing to spend more than you need to. It’s about focusing on what’s important to you and what fits your budget.

That might mean turning the thermostat down a few degrees and wearing a warm sweater. Hmm. Choosing to be frugal means different things to different people.

Should I accept a simple life?

I have friends who refuse to budget because they don’t want to be forced to change their lifestyle. Her words “living frugally” fill her with fear, an understandable impulse that misses her peace of mind that comes from controlling her spending. If we are about to enter the recession that many economists are currently predicting, people who live frugally will be better equipped to cope.

Besides weathering a recession, a frugal lifestyle can help build long-term wealth and allow for early or comfortable retirement. It may mean that you can achieve other financial goals, such as saving for a home down payment or getting out of debt. It involves focusing on a goal no matter what. To do that, you need to know your budget, where you want to spend your money, and what your goals are.

If you’re looking to live more frugally, here are a few steps you can take.

• Make a budget and set goals. To spend money purposefully, you first need to know where it goes and what you have left at the end of the month. If spreadsheets aren’t your thing, see if a budgeting app can help. Think about where you want to be in 5 or 10 years and where you need to invest to get there.
• Adopt a “what if” mentality. No one lives a simple life and becomes miserable. Instead, look for ways to do what you love without breaking the bank. For example, if you’re a gourmet who loves dining at restaurants, look for special discounts. If you love to travel, the question is how can you achieve your financial goals while traveling?
• Look for ways to reduce costs. By spending consciously, you can open up a world of money-saving options. Buying used clothing and furniture can save you over $1,000 a year. You may be able to change insurance companies or cut streaming subscriptions to reduce other transmissions. As you look for these savings and start celebrating, you’ll be amazed at how much you can save.

You don’t have to do it all at once. The trick is to make small changes and slowly change your mindset. Having clear financial goals makes small savings today easier because you can visualize what they will mean in the future.

Conclusion

With a possible recession and bills only seeming to rise, it might help to take a leaf out of Amazon’s book and see if a little frugality helps. Don’t assume that shivering through the winter without the heating on. Think of it as cutting out the unimportant so you can focus your spending on what matters most.