When you hear the word “frugal,” what comes into your mind? Does the “frugal” word connotes a negative or positive idea to you? The term “frugal” may be misinterpreted as a negative word, but this means sparing or economical when it comes to food or money.
One of the major reasons for becoming frugal is because it allows you to be financially free quicker. Your goal is to ultimately make passive income in such a way that you don’t have to worry about your daily necessities. The less personal and business expenses you have, the easier it is to be financially free.
As we are talking about this word, you may already know that we will all be talking about frugal living in this article. Read on to know and understand more about how to live a cheap life that stretches your dollars.
Table of Contents
What is Frugal Living?
Frugal living is living below your means. You don’t waste all your dollars on meaningless things. You look to invest your money and time in things that matter.
Increasingly, it can become a lifestyle and give you the freedom to do the things you want to do.
Frugal Living as a Lifestyle
Frugal living is a general lifestyle that motivates someone to yield to things that are not important to gain what they want. It can either be spending more time-saving money or spending money to buy yourself time.
Read: Best Passive Income Ideas For People With A Job
Having the Right Mindset
If you cannot control your finances like spending your money, paying off your debts, and creating a budget for your daily living, it is better to learn to live frugally.
Frugality may sound like depriving yourself of the luxury of life. Look at making earlier sacrifices to have the freedom to do whatever you want.
The sooner you are financially free, the more time you can spend on the luxuries of life.
It is making a wise and smart choice to handle your finances to meet your daily living expenses and pay off your debt faster and enjoy your life as how you want it to be.
Track Your Expenses
Before taking off on a frugal living journey, you should have the full commitment and clear direction of what you are doing. Most importantly, you need to have a clear understanding of what you need to spend on your money and where your money is going.
- Make a budget list and list down every single thing your money is spending for.
- Track your expenses by knowing where your money is going.
- Classify your expenditures of importance.
I suggest you try doing this for at least a month or two. Then check your list, and you will be surprised as to what you have been spending your money on.
Some who have tried this idea were shocked to find out how many unnecessary things they have spent money on. A lot of them go on to realize some of their expenses were a total waste of money, time, and effort.
Initiate Budgeting
Once you know where your money goes, you better initiate the budgeting of your money.
In doing so, it is vital to know the classify your expenses. Then you can eliminate the extra costs that you don’t need.
Once you decide to frugal living, you should change your financial habits. You can look at reallocating some of your resources. It may take some time to reap the benefits of frugal living, but it can help you in the long term.
Budgeting isn’t undoubtedly fun and mind-boggling if you don’t understand what you are doing. In budgeting, you should prioritize the important things and cut down the things that don’t matter to you.
Meal Plan
One of the most prominent variable expenses in budgeting is groceries. In order to save money for food, it is best to have a meal plan.
Meal planning help you save money. You can determine the things you want to eat and purchase those grocery items.
Eating meals based on what you already have can save you a lot of money and help you get creative at the same time. Look at what you have when you meal plan.
Here are a few frugal food tips you can do at home:
- It is best to plan your meals in advance. I suggest creating a weekly meal plan than a daily meal plan.
- Growing your own herbs and vegetables is an economical and healthier way to save money.
- Go for less-expensive cuts of meat.
- Avoid buying branded foods and online grocery shopping but go for store-branded and generic items.
- Limit your shopping trips and limit the ones that you buy based on what you need. Don’t buy those items that are off the list.
- Make use of the freebies, special deals, and coupons when shopping for groceries.
- Do the practice of “Eat Out Less Often” this way; you can control spending your money on unnecessary expenses.
Look at cutting off smoking, alcohol consumption, and junk foods. Aside from the fact that these are not good for your health, you will be amazed that you are saving money.
Frugal Tips On Transportation:
Use one car on all of your trips as much as possible. Did you know that the average person spends over $8000 per year for driving a car?
Do the math and realize how much it would cost you annually and divide it per day. Do you need to spend much on it?
Nonetheless, If driving two cars are imperative, I suggest using more fuel-efficient vehicles. Smaller cars, instead of SUV or larger cars, are better options to save money.
If your daily routine is just from home to work and work to home, another great option for you to save is to consider taking public transportation to work. It is 75% cheaper than owning and using your own vehicle.
On the other hand, If work is just nearby to your location, walking or biking would be a healthier option for you too.
Frugal Tips on Housing:
As to your home, downsizing your home can be a great deal for you to living frugally. It does not mean that you should have a big one if you can afford a big house.
A smaller home can provide comfort, convenience, and save you time and money. Maintenance costs can be smaller with a smaller home.
Do-It-Yourself House Projects
Are you a DIY lover? Try to create your own DIY beauty products like face masks, shampoo, soap, and beauty products. It can be a fun thing to do that will also help you save money.
You may also make DIY household cleaning products, e.g., window cleaner, stain remover, and laundry detergent. These items are things you can do to live more frugally and with more natural products.
You may be amazed at the outcome of your DIY items. Some crafts can last longer than the ones we buy from the stores. There are many video tutorials that you can watch online to guide you through this process.
Housing Problems
Whenever you encounter repairs or problems at home, consider if you can fix it yourself. This can have massive savings if you are willing to do a little sweat equity.
If you feel you or someone at home can do it, resolve the issue by yourselves. There are tutorial guides on YouTube that can be very helpful to you.
Monthly Utility Bills
Monthly utility bills are the ones that consume a lot of your daily expenses.
Frugal living also involves being keen and committed to what you are doing, using, and spending. Saving on these utility bills can help you spend or save for the other significant investment you want.
Adjust your thermostat according to the weather. It is best to get a programmable thermostat to save 5% to 15% on your bills.
Frugal Entertainment Tips:
Consider online subscriptions like Netflix, Hulu, and Disney. These services are generally a lot cheaper than cable television.
If you think you are not spending too much time watching television, then cut off your subscription to cable TV. If watching movies or television is an in-demand family activity at home, start weaning your family off into doing more productive things.
If canceling the cable TV subscription can help you save money, then cut off other monthly subscriptions that you can get rid of and enjoy your life in frugality.
- Taking advantage of free entertainment by scheduling a family game night will help you save money a lot and build a better relationship in the family.
- Credit cards are a good source of rewards for free flights, free meals, car rentals, or hotel stays.
- Take advantage of free days when visiting a museum or parks. Watch movies in theaters or a concert in a stadium if you have free tickets.
Can Frugal Living Make You Rich?
The short answer is NO!
Frugal Living can help people become financially free quicker. You need to engage in income producing activities. Look at starting a side hustle and building investment opportunities.
Read: The Ultimate Guide: Build Multiple Streams of Income
Read: The Goal: How to Get to $10,000 Per Month
Read: 200 Different Niches You Can Build a Business Around
What Are the Benefits of Frugal Living?
- Enables you to live an eco-friendly life
- It allows you to determine the real essence of simple living and knowing your priorities.
- Allows you to create a healthier and happier family relationship
- It will enable you to explore your artistic, creative, and resourceful mind in dealing with your daily routine.
There are still many things to mention about ideas on frugal living. But let me leave you a mantra always to remember when it comes to frugal living: Spend less than what you are earning.
Frequently Asked Questions:
Is it better to budget or start investing?
It’s best to do both. Look at where you are allocating your funds. Start allocating some of those funds into investing.
Do you use software to budget?
You don’t have to use software to budget. Be aware of where you are spending your money. There are some free apps you can download on your phone if you want some kind of software.
What is most important in building a frugal lifestyle?
Your partner and you have to be on the same page. You need to work together if you want to have a more simple lifestyle.
