A major payoff to practising frugality
is early retirement.
And, should one be the victim of downsizing on the part of his/her employer ...
... some financial cushion to allow some breathing space while looking for alternative employment.
Or, maybe, being able to choose early retirement ...
... or partial retirement, with some minor employment sought in order to partially fund that retirement, in case it was somewhat less than fully covered till the anticipated date of one's departure from this dimension of life.
The intention being, if one doesn't consider subsidizing one's offspring, or supporting some worthwhile charitable enterprises ...
... to spend one's last dollar on the last day of one's life (with burial provisions provided for, of course).
And ... the Income Tax people, of course: one wouldn't want to leave them crying in their beer, feeling deprived, now, would one?
ole joyful ... 25 years a personal financial advisor, now feeling sad that so few arrange for 3 - 6 months' income available as a financial cushion, in case of layoff, etc.
P.S. Actually ... there are two potential payoffs, here - the first being a cushion to tide one over till one might be able to find alternative employment, and the second being a fund available that might enable one to choose retirement (or partial such) earlier than one had anticipated.
It sure is pleasant to have some choices, some freedom of movement, some wiggle room.
Good wishes for making money your servant (a good one) rather than your (terrible) master.
If I can't manage to float financially if either two - or even one - paycheque(s) aren't available, without almost sweating blood, it seems to me that I have no financial freedom at all.
I appreciate the political and social freedom that I enjoy in this part of the world ... and the opportunity that most of us have had earlier, though less so in recent times, to arrange for a measure of financial freedom for ourselves, as well.