International Journal of Finance Research e-ISSN: 2746-136X Vol. 5, No. 1, March 2024 Published by: Page103 Analysis of the Effect of Frugal Living on Employee Financial Management in Achieving Financial Freedom Rizki Hartantri, Bakti Setyadi, Muji Gunarto Universitas Bina Darma Palembang Corresponding Author: rizki.spl1@gmail.com Abstract Employees are advised to apply the concept of frugal living or save at all costs to break the chain of debt that could endanger their financial condition. Employees may achieve financial freedom more quickly by practicing frugal living from an early age and managing finances well. Planning for financial freedom is very important because one day, people will lose their ability to work. This research collected data from 150 employee respondents who worked in private or civil agencies. The uniqueness of this research lies in the data processing method results showing that the t-test value for the frugal living variable has a value of 56,85, which is greater than the t-table of 1.66. The research results show that the Frugal Living lifestyle significantly affects employee financial management. In contrast, the relationship between financial management and financial freedom has no significant effect. Apart from that, the relationship between Frugal Living and financial freedom also does not have a significant effect. This research contributes to increasing insight for employees to implement the Frugal Living lifestyle in achieving financial freedom at an early age. Keywords: Frugal Living, Financial Management, Financial Freedom JEL Codes: M. 40, M41, M.42 How to Cite: Hartantri, R., Setyadi, B., Gunarto, M. (2024). Analysis of the Effect of Frugal Living on Employee Financial Management in Achieving Financial Freedom. International Journal of Finance Research, 5(1). pp. 103 – 113. DOI: https://doi.org/10.47747/ijfr.v5i1.1700 1. Introduction The current increasing cost of living and stagnant income have prompted most people to devise special strategies to maintain survival. Starting from the COVID-19 pandemic in 2019, weather instability, to the conflicts in Russia-Ukraine and Israel-Palestine, all of these events have had an impact on increasing interest rates and increasing prices of basic goods. It is important to think of solutions to survive amidst soaring food and energy prices. In this modern era, there is the influence of incentives that have less positive value, such as following trends in purchasing Article Information: Received: March 05, 2024; Accepted: March 11, 2024; Published: March 13, 2024