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What Frugalism Can Teach Us About Work and Careers

1. The relationship between things and happiness

In recent months, I’ve spent quite some time thinking about frugalism. Many people confuse it with minimalism. But in reality, it’s something different: at its core, it’s about consciously asking what we truly need - materially - to be happy.

Frugalists regularly ask themselves questions like: What does something cost me -not just financially, but also in terms of time, energy, effort, and attention? And what do I get in return in terms of happiness?

Ultimately, it comes down to a ratio: the relationship between the cost or effort invested and the happiness it creates. In other words, the things-to-happiness-ratio.

I find this idea compelling.

2. A personal example

A concrete example from my own life: I own an apartment in Hamburg and one in Barcelona.

The apartment in Hamburg is larger, more comfortable, and significantly more expensive. It’s a new build, with plenty of space and in a nice and central area. Overall, it cost roughly five times as much as the apartment in Barcelona. The Barcelona apartment was originally intended as a holiday home. It is much smaller, simpler, and less comfortable.

The interesting realization after spending more time there: I am not only happier - I also don’t miss anything at all.

If you apply the logic of frugalism, a simple equation emerges: if something costs five times as much, it should ideally give you significantly more in return - perhaps even make you five times happier.

But it doesn’t.

The cost-to-happiness ratio of my Hamburg apartment turns out to be surprisingly poor, even though it is objectively more “valuable.”

3. More is not automatically better

This principle can be applied to many things: cars, consumer goods of all kinds - and even career decisions.

In many organizations, a simple logic still prevails: more responsibility, more budget, more people, more influence. More is better.

But more and more people are beginning to ask different questions: Do I really need a large team? Does a bigger role actually make me more fulfilled? Or am I paying a price that, despite higher compensation and recognition, is not justified by the happiness I get in return?

This strongly reflects the logic of frugalism: it’s not about having as little or as much as possible. It’s about consciously deciding what is truly worth the effort.

4. Career as a ratio of effort and impact

In conversations with candidates, I hear these reflections more and more often. People are no longer just asking: How big is the role? How high is the salary?

They are also asking: What does this role mean for my life? How much time, energy, and responsibility does it demand? And is that in a healthy balance with what I get back?

Some consciously decide against a bigger role - and in favor of greater personal impact in a smaller context.

That is not a step backward.
It is a different kind of clarity.

5. My impulse

Which things in your life have a good ratio of effort to happiness - and which don’t?

And when you look at your career: which role truly gives you something back - and which primarily drains your energy?

Because perhaps, just like in frugalism, success is not about having more.
It’s about consciously choosing what is truly worth it.

About the author

Dr. Sebastian Tschentscher finds the best digital minds for your company with his executive search boutique "Digital Minds".

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