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You may think a frugal lifestyle is the best way to build wealth.
You are eager to get started, but you are not sure how frugal you should be. Will you need to shop for only generic brands or always choose the option that saves you a few nickels and dimes? Fortunately, this is not the case.
Some of the wealthiest people treat themselves to nice things. But it took hard work and discipline to get to that level. Getting to this level took hard work and discipline.
If you are ready to adopt a frugal lifestyle, please keep reading.
Why Bother Living Frugally?
Living a frugal lifestyle is not easy.
So why go through the effort?
Living a frugal lifestyle allows you to pay off debt and retire sooner. To do this, you have to make short-term sacrifices. And this is much easier said than done.
It may mean canceling unnecessary services, such as a DVR or Netflix. This will give you an extra $50-$100 to pay off your debt faster.
People typically want better cars and houses but are unwilling to work to attain these things.
This is a recipe for disaster. This mentality will cause you to go into debt and constantly stress about money.
Living frugally, on the other hand, will help you be more grateful.
Will you stop wanting better things? No, but being frugal will help you spend your money intentionally. You will view each sacrifice as an opportunity to attain something better.
Frugal Living Isn’t About Being Cheap
Paula Pant said, “You can afford anything but not everything.”
It is about clearly understanding how much money you are earning and spending.
Once you know how much you can spend, you can make informed decisions with your money.
Rather than purchasing an expensive item, you can find something within your current budget.
You will have to resist the temptation to buy certain things. To invest more money, you will have to say no to financing your dream car. You may need to purchase a less expensive phone.
Frugal living will be challenging but rewarding. You’ll build financial security and live a happier life without worrying about money.
Benefits of Frugal Living
Research shows average Americans carry about $8,000 in credit card debt. Owing a lot of debt will cause you unnecessary stress. And this stress can trickle down to other parts of your life.
Because frugal living requires discipline, you’ll make fewer unnecessary purchases and carry less debt. Since you’ll have less debt, you will be happier. You will no longer need to stress about money all the time.
if you lost your job tomorrow, how would your savings last?
If you hesitated to answer this question, you’re not alone. According to a survey from GoBankingRates, more than half of Americans have less than $1,000 saved up for emergencies.
Frugal living will help you save money faster.
More importantly, frugal living will give you more time to spend on things that matter. Even if you report to someone in your job, you’ll know it’s your choice to be there. You’ll also be able to afford more vacations and pursue creative business ideas.
Frugal Living Tips for Seniors
You’ll benefit from being frugal at any age. But you will reap the most benefits from a frugal lifestyle as a senior.
Most seniors are not working, and thus they have more time on their hands. This time can be used to travel cheaply.
For example, hotels offer discounts for showing up before evening rush hours. Airlines offer discounted tickets for choosing alternative dates.
Additionally, senior citizens can save money by cutting unnecessary insurance. For example, if you’re no longer employed, you can cancel your disability insurance.
At some places, you’ll get discounts automatically because you’re a senior. Restaurants, clothing stores, and hotels offer discounts.
Most states also allow seniors 65+ to freeze their property taxes. Whether you’re a high-income earner or not, there are plenty of senior perks.
How Do You Live on a Frugal Budget?
Frugal living enables you to pay off your debt and save money. But it’s not what you may think.
Being frugal entails being creative about spending money. It doesn’t mean living a cheap and miserable life. Having a frugal budget allows you to save and invest as much as possible while still being happy.
But how can you be happy while saving as much money as possible?
By having a clear purpose! You’re not living a frugal life by chance. You chose to live frugally to retire faster and travel more.
Think of your frugal budget as one that adds value to your life. You can still save for your financial goals but also reward yourself along the way. For example, if you reach a financial goal, treat yourself to a meal at your favorite restaurant.
This way, you’ll make progress toward your goals and not feel miserable along the way.
Can Being Frugal Make You Rich?
Frugal living is the only way to build true wealth.
Isn’t being rich and being wealthy the same thing? No.
A rich person can earn more than someone who is wealthy and still be financially worse off. When a rich person loses their main source of income, they’ll quickly gain a lot of debt. Wealthy
people have several streams of income.
The reality is that most wealthy people are frugal. The author, Thomas Stanley, interviewed hundreds of wealthy people and discovered most lived frugally. This is shocking to most who believe the wealthy buy expensive cars and mansions.
While it’s true that many wealthy people still buy expensive things, they’re still frugal in other areas of their lives.
Frugal Living Blogs to Help You Stay Motivated
John Rohn said, “You are the average of the five people you spend the most time with.”
Frugal living isn’t easy.
This is why most people indulge in fancy toys and delay reaching their financial goals. Because frugal living is difficult, you’ll need motivation along the way.
The people you surround yourself with will influence your success.
Sometimes, the people around you aren’t always helpful in building better financial habits. An alternative is to fill your mind with the right thoughts. Here are some blogs that’ll help you do that:
1. MrMoneyMustache
Mr.MM covers many topics, such as the benefit of DIY solar panels and how to cut your grocery bill in half. If you are someone who loves well-written articles, you’ll be a fan of Mr.MM.
2. ThePennyHoarder
The main goal at Penny Hoarder is for you to transform your finances and feel less stressed.
There’s no shortage of topics to explore here. Topics include making money, debt, saving, and retirement.
Frugal Living Tips
By now, you probably know many of the benefits frugality brings.
You also know some of the challenges.
And, with so many tactics, how do you know which ones to choose?
You apply the ones that will have the greatest impact. Pareto’s law states that about 80% of the outcomes should come from 20% of the causes.
Like Pareto’s law, you’ll focus on the frugal living tactics bringing you the most impact.
Below is a list of some of the most effective frugal living tips you can try to reach your financial goals faster. Master one frugal tip at a time and watch your financial future soar.
Frugal Living Tip #1: Focus On Your Health
Without your health, you have nothing.
When you’re healthy, it’s easy to neglect your health—for example, by eating poorly and not exercising.
The sad reality is that your health will decline at some point in your life. When it does, you’ll end up spending more money to take care of yourself. But by taking care of yourself now, you’ll feel better and spend less money on future medical expenses in the future.
Data shows health spending is increasing, but you can avoid some of these costs.
Here are some key ways to stay healthy:
- Go to the gym 2–4 times per week
- Eat healthy foods 3. Get 8 hours of sleep daily
- Visit your doctor for routine check-ups
Extra frugal living resources: Cut medical expenses
Frugal Living Tip #2: Buy High-Quality Food
Not being frugal with your food is being frugal.
Confused?
When buying food, seek out the best deals, but don’t always buy the cheapest option. Instead, buy the more affordable alternative. The higher the quality of food you eat, the healthier you’ll be. The problem is that organic food can be costly get expensive.
So what can you do?
Find the best deals on food that lasts a long time. With the extra money, stock up on healthier alternatives.
Here are some rules to follow when you’re shopping:
- Only buy what’s on your grocery list
- Set a budget and stick to it
Frugal Living Tip #3: Seek Free Stuff
What better way to be frugal than to get free things?
Many companies offer free samples. Samples such as food, products, and services.
Why would companies give products away for free?
Charities do free giveaways to the needy. Other companies do so to attract new customers.
While some things aren’t entirely free, it often beats paying the retail price for them.
Extra frugal living resources:
Frugal Living Tip #4: Make a Budget Around Your Lifestyle
One of the best ways to live frugally is to set and stick to your budget.
If you have a budget, you can reach your financial goals. This is when the magic happens. You’ll cut unnecessary expenses and gain confidence after you reach your financial goals.
To create a budget, you must first analyze your spending. Then, list all your monthly expenses and budget for them. Use your leftover money to fund your different financial goals.
Extra frugal living resources:
Frugal Living Tip #5: Eat Out Less Often
It’s tempting to go during your lunch break and eat delicious food.
The problem is that spending $15 a day can quickly add up to over $300 in monthly expenses.
An alternative is to pack your lunch. Doing so can help you save over $1500+ annually.
Not only will this save you money in the long run, but it also allows you to make healthier choices for your meals as you prepare them.
Aside from saving money, you’ll eat healthier since you’ll prepare your food.
Frugal Living Tip #6: Maintain Your Vehicle Properly
Keeping up with your car’s maintenance will save you money in the long run.
Take, for example, a simple oil change that costs about $120 annually. You may believe that skipping an oil change will you money, but engine repairs can cost you anywhere from $1,000 – $5,000.
Car washes can also make an impact. Prices range from $200-$1,000. If you don’t wash your car often, your paint is more likely to rust and has a greater chance of rusting.
Since you’ll be using a budget, budget for your car’s maintenance to save money in the long run.
Frugal Living Tip #7: Befriend Your Local Library
Reading is one of the best investments you can make while saving money.
How?
It shaves off your entertainment costs. The more you read, the less time you’ll spend on entertainment. Most libraries offer free library cards for a minimal cost.
You’ll save money on books — because you can rent most of them from your library. Nowadays, you also have the option to rent digital books from the comfort of your home.
The average American spends about $3,000 annually on entertainment. You’ll shave this cost if you spend more time in the library or at home reading.
Extra frugal living resources: Access online books from your library
Frugal Living Tip #8: Use Coupons
Don’t pay for anything at full price.
Today, you have more ways to save than ever, but you’ll need the right coupons. A quick search online for “top online coupons” will do the trick in helping you get started.
But online coupons aren’t the only way you can save. You can also get cashback for your groceries, dining restaurants, and miscellaneous purchases.
Here are some of the best cashback apps:
- Dosh (best cashback for all types of purchases)
- Ibotta (best cashback for groceries)
- Ebates (best cashback for online purchases)
Frugal Living Tip #9: DIY
Time is money.
Yet, sometimes you can enjoy doing things you’re good at while saving money. For example, if you’re a car fanatic, you’d probably enjoy changing your car’s oil the oil of your car. On average, companies charge $30-$70 for an oil change.
Depending on the type of oil you’re using, you’ll change your car’s oil anywhere from 2–4 times.
This means you’ll save anywhere from $60 – $280 per year. If you ever run out of something, make it a habit to find a cheaper alternative.
This won’t always work, but you’ll train yourself to be handy. Eventually, this habit alone will save you hundreds of dollars per year.
Extra frugal living resources: Advanced DIY projects
Frugal Living Tip #10: Only Buy Things You Need
In a perfect world, everyone would only buy things they need.
The reality is that most people buy out of impulse and without a budget. This causes them to go into debt or accumulate a lot of extra items. Your solution to this problem is to use using the 30-day rule.
The next time you are about to buy a high-ticket item, wait for 30 days first. If after 30 days you still want to buy this item, do so. Doing this will give you enough time to stop buying out of impulse and budget for expensive items.
Extra frugal living resources:
Frugal Living Tip #11: Only Keep What You Need
We tend to keep things we don’t need.
But being a hoarder is costing you time and money. Declutter expert, Tracy McCubbin, says emotional problems are the root cause. The best way to start decluttering your home is to view it as a tool.
Your home should help you cook, work, and sleep efficiently. Having this perspective will help you identify areas in your life that need attention. Don’t plan to declutter your entire home in one weekend.
Instead, spend a few minutes cleaning one part of your room and slowly transition to other parts of your house. To avoid clutter, pick one day a week to clean your house.
Extra frugal living resources: Minimalist Lifestyle Hacks
Frugal Living Tip #12: Trim Your Expenses
If you aren’t negotiating your monthly expenses, you’re overpaying.
You can negotiate your bill solo or hire someone else to do it for you. The only catch with letting a company negotiate your bills is that they’d take a part of your savings.
Not taking all your savings isn’t ideal, but it’s better than taking nothing.
Review your bank account statement for the last 60 days and jot down your monthly expenses.
Start with your most expensive bills, call to negotiate, or let someone else do it for you.
Extra frugal living resources: Cable alternatives
Frugal Living Tip #13: Start a Side Hustle
Frugal living is enriching.
You save money and feel happier.
However, you cannot reach financial success through frugality alone. Instead of slowly saving money to build wealth, grow your income with a side hustle.
Why?
A side hustle allows you to create your ideal job if you’re unhappy with your current one. Even if you’re happy, having an extra income will improve your financial security.
Be prepared to put in a lot of hard work because building a side hustle is the same as building a business.
First, decide what type of side hustle you would like to start. Then, emulate people who are already where you want to be.
Most importantly, be patient because building a successful side hustle may take years.
Extra frugal living resources:
How To Start A Blog And Make Money
How to Get Paid For Writing (7 Legit Ways)
Live Frugally and Be Financially Well Off
Imagine living life on your terms.
You’re confident about your retirement and rarely feel stressed about money. The best part is you didn’t deprive yourself of living your ideal lifestyle.
Wouldn’t this be great?
This can be your reality if you adopt a frugal living lifestyle. Master one frugal habit, then work on mastering another.
Success doesn’t come easy. But if this means living your dream life, isn’t this worth the sacrifice?
