At times, it is good to review the basics. Here we will discuss some frugal money saving tips to help keep you on track with your ultimate goal of financial independence and enjoying your lifestyle. There are always times when we step out of line and go on a spending spree (especially around the holidays when you’re shopping for over a month straight), but those who can become masters of quickly correcting and returning can avoid the trap of excessive spending and come back to reality.
4 Frugal Money Saving Tips
Frugality is focused on spending less, saving more and better channeling savings towards investment. As a strategy, this concept has been coined as the way to make the most of what you have and, look for ways to expand your own economy. You can start with seeking out free items or use a barter system to sell or trade that which has little value to you but others may value much more. It’s more than just being “cheap” (See America’s Cheapest Family) But frugalism itself is a way of life that must align with your values because otherwise, it will not work.
To live frugally, we must encourage our creativity. Think of it as a game, how can I save more? The purchase of food (compare prices for the same product among different stores), to further improve your ability to fix things at home (do-it-yourself, DIY), rent instead of buying (home, car, etc.). You will need, and I assure you, to be more creative. You can also combine frugality with the concept of only keep what brings you Joy, see the KonMarie method in The Life-Changing Magic of Tidying Up.
Buy only what sparks Joy
This last concept applies in the purchase of more durable things that you save up to purchase and barely replace. I mean, buying a piece of good quality furniture will always be better than buying a single-use piece of furniture. This happens with clothes too; do not buy more often to save the cost of one good over another will lead us to financial excellence. Remember that you only wear 20% of your wardrobe 80% of the time, and 9 out of 10 of us make spontaneous purchases of clothing.
Frugality forces you to face the fact that you are not what you own and makes you look more internally in yourself. This is where a personal finance trainer or financial coach can help you find the best way to make your economy better and you can decipher from within what you really want and are willing to sacrifice in your lifestyle. An outward look at your environment can help you see how organized your mind is.
Do you have clutter or a hard time making decisions? Can you see how that reflects in your own personal life? Are there areas of your life that are clean and organized but do you still have a closet full of junk that you don’t want to go through? If you believe that you can maintain a “true” frugal style today, you will have to work on motivation, awareness, goals and design an action plan for success and wealth creation. Without this, facing new challenges in your life will be more difficult for you.
Frugality is not something that most people can and will follow easily (society in which we live has a lot of pull), but it is true that many of the millionaires (see The Millionaire Next Door) and people who have generated economic wealth have applied some concepts of frugality. All you have to do is take a look around at those who are successful and you will find in many of the high levels of what we have mentioned regarding frugality.
Frugality is not stinginess – Focus on Value
This is a radical error, the person who applies prudence in his day to day is not at all a stingy person, far from it. In fact, it is quite the opposite since this person has intentionally chosen their investments, their expenses and their level of consumption. They are aware of the value at hand, continue to look for the best deal so long as it doesn’t require extreme amounts of time and effort negating the value effect.
To apply the frugality of consumption in general aspects of your life always provides an improvement in personal finances. People who are able to control their expenses, improve their purchasing systems, apply models of reflective consumption, control costs, and maintain a sound economic policy, reach a level within their personal finances much healthier than the user average that develops within the consumption that we determine as “normal”.
Learn to control your tiny expenses
Probably the best way to start on the path of frugality is to learn to manage your costs, and specifically those that are called micro expenses or mini expenses.
If you have never stopped to reflect on your level of consumption, you may follow these lines and make that reflection, go check your bank statement, it may astonish you, especially when you realize the high level of use in small expenses that we can generate, and what it would mean for you.
Now add those up and realize that together that sum seems like so much more than just a few sporadic treats. But by understanding where your money goes you can limit those loose ends.
We will generally misunderstand those small daily expenses. It happens almost daily for some us with busy lives and we usually do not control or pay too much attention.
Each person can have their perception of money management, depending on how they see savings or work. Those who are more frugal and do not have a hard time “tightening their belts”, usually opt for saving as the strategy to achieve their long-term goals.
While those who enjoy “giving themselves splurges” prefer to maintain their current quality of life and are always unsatisfied and continue to seek to earn more money to pay for more things.
The truth is that to have good finances, you stay within a budget and think ahead (and fulfill their dreams), the key is based on increasing the difference between what you earn and what you spend.
It sounds simple to cut expenses and sounds even simpler to ‘spend less’ but it may end up being the harder of the two. It all comes down to the fact that you should stop spending money on what can be considered unnecessary or irrelevant in your day-to-day life, as well as making cuts in those things that are not essential and are more like “luxuries” in your life. Keep your mindset focused on the long-term.
Spending less means that, from your monthly budget, you get more advantages to save without making other types of effort that go beyond your limits or involve time. Even this can lead to living the style of frugality where you are aware and consciously making choices with your money. No longer does it become a matter of being ‘cheap’ but instead it helps you focus on that which you really want.
Live the Frugality lifestyle
Understanding that being frugal is more than having a budget, it’s about finding value in life and the things you surround yourself with and changing your lifestyle. Does this shirt make you happy? Or do you always avoid it because of a stain on it? What decision are you going to make with it? Now is the time to go through your finances and then to your belongings and on to your relationships and personal life. Are you surrounding yourself with positive uplifting items/friends or are there some things you need to remove and others you need to add in to make your life the ideal lifestyle you’ve always wanted.