Frugal living is the practice of spending one's money wisely, avoiding waste and unnecessary purchases. The frugal lifestyle is one that has been around for centuries. It is a way of living that focuses on saving and investing money in order to achieve financial security and independence. Frugal living can be achieved by cutting back on expenses, like eating out often or buying clothes every month.
The frugal lifestyle is one which emphasizes quality over quantity. The way to live a frugal life and save money is to spend less on consumption, and instead invest in your future.
The first step in living a frugal life and saving money is to find creative ways to cut back on spending. It may be as simple as cutting out one expensive habit like coffee, or it may be more complex like finding ways to reduce your commuting costs.
There are many benefits of living a frugal life and saving money. One of the best things about living a frugal life is that you will have more disposable income at the end of the month. You will also have more time for other things in your life because you won't be spending so much time working for money!
1. Think long-term in your decision making - you might pay a little more in the beginning but you get to save more in the long run especially when making big purchases. For e.g. buying groceries in bulk can save you money as the bulk items are most times cheaper than the individual item, less trips to the store which saves on fuel and more time saved so you can engage in something else.
2. Use your coupons and reward points - why pay full price when you can use your coupons to get discounts on your purchases. You can also use your reward points from your purchases to get more items for free which as you guessed it saves you money.
3. Cook at home, "eat out less" - this one may be a bit difficult as we all love to eat out as it's convenient but it's also expensive and at times may not be the healthiest choice. Cooking at home is cheaper, you know exactly what ingredients you are using and it also helps the family connect when everyone gets involved. You may have to bribe someone, to do the clean-up afterwards, which everyone will try to avoid.
4. Cut down on your entertainment budget - you can try a movie night or games night at home and prepare some snacks, do some backyard camping with the family, invite some friends over and have a BBQ, allow everyone to bring a dish/drinks or prepare some finger foods and have a picnic at the park. All of these can save you money while you still get to entertain yourself.
5. Find a credit card with great rewards - if you love to travel get a credit card that offers great rewards points that you can use to travel. One great idea is to route all your monthly expenses through your credit card so that way you gain more rewards when you pay all your expenses via credit card, those rewards come in handy when you are ready to travel, so it's a win, win. Credit cards are not for everybody so please use it responsibly.
6. Buy yourself a used reliable vehicle - First do your research and buy yourself a used reliable vehicle that will save you thousands of dollars instead of rushing to buy the latest model vehicle which can cost you much more. They both can take you from point A to point B. Choose wisely.
7. Buy a smaller house - when it comes to buying a house you can sometimes get a little carried away when it comes to size and aesthetics. It's best to purchase a smaller modest house that is comfortable and you can afford than to be bound to a higher mortgage payment for a bigger house that you may not get to enjoy as you are always stressed in trying to meet those monthly payments. The money saved can be invested into another project that can generate more money for you.
8. Do a budget to include a line for savings and emergencies - it is important to keep a budget especially if you are not discipline with money. Have savings and an emergency fund account written down in your budget and setup a monthly direct transfer to these accounts so you have no excuse for not getting it done. You will thank yourself on that day when your washing machine breaks down and you can easily get it repaired with from your emergency fund or if you decide to invest in a new venture, you can easily reach into your savings to get this investment going or use it as collateral.
9. Pay off all your bad debts and keep it so - it is very easy to rack up bad debt (bad debt is spending money on items that doesn't give you any returns like debt on expensive clothes, shoes, bags, dinners and travels) these should be paid off and you should keep it so, as you just end up paying interest on your debt for items that you may no longer have.
10. Do not Gamble - Stop spending money on lottery tickets or on gambling machines in the casino. On average people spend $300 monthly on lottery tickets which profits them nothing. This monthly amount can be better spent into a small investment that can guarantee you a small ROI and if it is using compound interest, this can make you thousands of dollars in the long run. Do your research.
11. Do more DIY projects at home - there is a wealth of information online on how to get things done yourself, especially little DIY projects like fixing a leaky faucet, changing a door knob, installing some software/hardware on your computer or making your own cleaning products. All of which are not too technical and help you save money and also boost your esteem.
12. Keep it simple - get rid of things you don't need - ever got caught up in a flash online sale or one day sale at a department store only to have items lying around that you never get to use. Well keep it simple and sell those items on an online platform or have a yard sale to make some money and help you declutter. Less is more.
Conclusion: The Benefits of Living A Frugal Lifestyle
In conclusion, living a frugal lifestyle can be beneficial in many ways. You will be pleasantly surprised as to how much money you can save to helping you achieve your financial independence, as well as time, which will help reduce your stress levels and it can even improve your mental health.
