Why live frugally? Living frugally allows you to spend less than you earn, and use the difference to pay off debt, save or invest, or all three. Also, the less you spend, the less you need to earn. That means you can choose to work less, or work more but retire early. Or take mini-retirements. You have more options with a frugal lifestyle.
Keep in mind that to be successful at living frugally you should be content with your life and living a frugal lifestyle. Otherwise, if you are generally unhappy with your life, you might end up overspending trying to make yourself happy.
Here are some related posts related to happiness:
- 10 Important Lessons from Stoic Philosophy On Happiness, Gratitude & More
- Walk Your Way To Happiness and Better Health
- How To Avoid Buying Things To Fill A Void
- How To Be Happy
Now that we covered that important point, here are some suggestions on how to master frugality and become a frugal freak. 🙂
CREATE A REALISTIC FRUGAL BUDGET AND FOLLOW IT
When it comes to staying out of debt and saving money, the best way to achieve this is by creating a frugal budget and doing your best to stick to it. When I say “frugal budget” I mean a budget that will allow you to save money. You could create a budget and have so many areas where you will like to overspend, that you will hardly save any money because you budgeted for all the overspending. 😉 You can easily track your budget by using an app or by using an Excel spreadsheet. Here is link to the one I created here. You can also use the printable pdf that you can download below.
- Calculate your monthly income.
- Calculate your monthly expenses.
- Subtract expenses from income and determine your savings.
- Determine from your savings what goes into your emergency fund.
When you figure out your estimated savings you can set up the goal to reach it and track it as time passes. On the budget file I created (link is here), I also have an automated goal setting spreadsheet where you can tie your savings as a goal and track it each month. Along with tracking your progress, it builds a bar graph that also shows you your progress.
Here is a video where I go over how to use it.
GO WITH ONE CAR
Many families have two cars. For these families, even if they’ve paid off one vehicle, the cost of insurance, fuel, parking, repairs, and routine maintenance can quickly add up. If it’s possible, consider taking public transportation to work. It’s cheaper than owning and using a car. If you live close enough to work, you could also consider walking or biking. If two cars are necessary, consider trading in your car for something more fuel-efficient.
I own a car, but before I could afford paying for it cash, I took the train to work every day.
CONSIDER DOWNSIZING YOUR HOME
Just because you can afford a larger house or an apartment in the city center doesn’t mean you need to. If you can comfortably live in a smaller home or in an apartment just outside downtown, you could save thousands of dollars a year. Also, if you would like to save extra money, consider getting a roommate, renting a room through Airb&b, or living with your parents or a relative.
I lucked out and after struggling with a health condition, I moved in with my parents who had an extra room and bathroom. I can afford to move out but would rather save to move out when I have enough money saved for both a down payment for an apartment and an emergency fund, which should take a couple of years for me.
ADJUST YOUR THERMOSTAT
Bump your thermostat down to 68°F in the winter and down to 78°F in the summer. It may be a bit uncomfortable at first, but if you throw on a cozy sweater and some slippers or warm socks in the winter or keep a glass of ice water nearby in the summer, your body will adjust and your bank account will thank you. You can also save more money by lowering the temperature when you’re not home or when you’re sleeping. Turning your thermostat back a little down for 8 hours during the winter can save you 5% to 15% on your heating bill. Get a programmable thermostat to do this for you.
DON’T SPEND ON CABLE
If you spend hours in front of the television, there are other productive things you could be doing with your time, such as spending time with family and friends, taking up a new hobby, or catching up on your reading. You’ll be surprised how much money you’ll save and how little you’ll miss cable television.
On the other hand, if you don’t watch television all that much, cable isn’t adding any value so you may as well do without it.
We currently don’t have cable. We use a service called Roku, which costs $30 in total. We have a subscription to Netflix and Amazon Prime that includes video with it. We also have an antenna to get some main local channels. Antennas go for around $20.
Related content:
- How To Save Money – 50+ Ways To Save Money
- Why We Should Have A Budget
- How To Create A Budget
- How To Save Money: How I Will Save Over $20,000 This Year?
- Why Keeping Up With The Joneses Leads To Financial Disaster?
- How Living With My Parents Has Helped Me Save $12,000 In 5 Months
GET A LIBRARY CARD
Instead of spending money on books and DVD’s, you can borrow them for free at your local library. Many libraries have a great selection of the latest books, music, and movies. And the great thing about borrowing a book or a movie is if you didn’t enjoy it, you won’t have to beat yourself up for spending money on something you’ll likely never read or watch again.
FIND A SIDE HUSTLE
You can bring in extra cash by capitalizing on a hobby you enjoy, or a skill set you have. For example, if you’re a good writer, consider freelancing articles for blogs, newspapers, media outlets, or on a freelancer website. If you’re crafty, consider selling your creations on Etsy.
I currently sell on Ebay and Poshmark and make some income through affiliates and products on this blog.
ENTERTAINMENT & GOING OUT
Eat before heading out to the movies. Popcorn, candy and nachos are expensive, so if you fill up before hitting the movie theatre, you’re more likely to bypass the concession stand and keep your money in your wallet.
Travel during the off-season. Whether you’re going to Tokyo, London, or Havana, each vacation spot has a different peak travel time. So, do your research and figure out when the off-season starts in your vacation spot.
Go out for lunch instead of dinner. Lunchtime menu items are often cheaper than their dinner counterparts, and most restaurants offer lunchtime specials as well. To lower your bill even further, go for water instead of wine or a soda and skip dessert.
If you go out for dinner, share a meal. The portions in some chain restaurants are more than enough for one person, so consider splitting your meal – and the cost of dinner – with your dining partner. Or, eat only half of what you ordered and pack up the rest for your lunch the next day.
BROWN BAG IT
Instead of buying breakfast on the run or eating out during lunch, pack your lunch the night before and brew your own coffee in the morning. You’ll be surprised by how much money you’ll save each month.
STOCK UP
If your grocery store or supermarket is having a sale on non-perishable items you regularly use, stock up. Not only will you save money in the long-run, but you’ll also have a stocked pantry so you won’t be tempted to order take-out or go out for dinner.
EAT OUT LESS
Cooking your own meals is another great frugal living tip, and it’s also healthier because you’ll have more control over what goes in – and what stays out – of your meals.
CHECK OUT THE FLYERS AND COUPONS AT YOUR GROCERY STORE
Meal plan and make a shopping list based on what’s on special at the grocery store. This way you’ll make fewer shopping trips, save more money, and waste less food. Plus, if you already know what you’ll be making for breakfast, lunch, and dinner, you won’t get trapped into going out to eat when you’re stumped on what to prepare for dinner.
Contrary to popular belief, living a frugal lifestyle actually opens you up to more options. If the choices you make allow you to get by with less money, not only can you pay off debt much faster, but you can also make personal and professional choices based on what you want, instead of based on money. For example, if you’re able to get by with less, you can choose to work less and focus on your own projects or work more and retire early. It’s all up to you! To live frugally is less about knowing how to save money, and more about making mindful lifestyle choices that allow you to live below your means so can enjoy debt-free living.
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