You don’t need a lot of money or possessions to live well. You can live exceedingly well if you learn how to budget and not waste money. The key to doing that is to develop frugal habits.
Being frugal is not about buying inexpensive, low-quality items to save you money. That can be detrimental to your goal. Being frugal is to determine what you need, and get what you need for the best price.
Many people buy things they don’t need at all. They just think they do because they see it being sold at a cheap price or on sale. You have to remember, a bargain isn’t a bargain if you don’t need it.
Here are some tips to help you practice frugal habits for living well.
Make Your Savings Deposit Before You Spend
Many people find it hard to save and feel their paycheck won’t even cover the expenses they have already. If you want to live well, you should safeguard your future with savings.
Yes, it may sound impossible to you if you can’t make ends meet already. However, it’s not hard to set aside money for your savings once you get into the habit. There will be things you spend money on right now that you can stop doing.
Make a list of your expenses, the necessary and the not so necessary, and see what ones you can remove. There will be some that you now deem as necessary, but won’t be. For example, the purchased coffees, snacks, and lunches. How much is that costing you per day, per week, per year? Are you a drinker or smoker? Work out what that is costing you!
The key is to make your saving deposit first. Set aside a portion for your savings before allocating money to your ‘not-needed’ expenses. You can automate this so that you don’t have to worry about it. Out of sight, out of mind. Your savings will grow before you know it!
Now that you have paid into your savings bucket, you will see what is left to pay your expenses. Live frugally. ONLY buy what you need. You will soon learn to budget your money more efficiently than you thought possible.
A bonus is the sense of security it will give you if an emergency arises. There are many times in life when unexpected expenses occur. It could be damage to a vehicle, hospitalization, an injured pet, etc. All these things cost money and if you haven’t put any money away for a rainy day, the stress can be huge!
Financial advisors recommend you have at least three months pay put aside in case of dealing with any type of disaster. This can sound monstrous, but it is doable if you develop frugal habits.
You don’t have to set aside a massive amount in the beginning. You can start with a small amount that you feel comfortable with. That may be only a few dollars. The key is to get into a savings habit, and then increase your savings installment whenever you can.
Don’t Eat Out, Eat Nutritious Meals at Home
One frugal habit that is not only good for your pocket, but you will also live well too, is to eat healthy meals at home. Eating out all the time is not good for your budget or your health. Dining in restaurants is a pleasant experience, and that’s fine to do once in a while.
If you do the cooking you have complete control of the ingredients you use, and you don’t need to add any artificial flavorings or preservatives. Of course, you will save money too.
Don’t Be a Fashion or Trend Spender
If you find yourself ‘wanting’ to buy the latest fashions or trendy items just because your friends are, you will be affecting your budget and your health! This keeping up appearances mindset is stressful and can hurt your emotional health.
If you want to live well, you have to avoid stress. You don’t have to ride the trends. You don’t have to get the latest iPhone if your current one is still working. You don’t need new brand-name clothes just because your best friend has them. You certainly don’t need to buy to impress people on social media. You can’t live well if you live like this. Be frugal. Buy what you need, not what you want.
Check Your Entertainment Spending – Of Time and Money
Do you have cable TV, go to the cinema every week, or subscribe to Netflix, HBO, Disney, and others? If so, it’s time to cut back on these entertainment channels if you want to develop frugal habits for living well.
Hopefully, you are not spending hours in front of the big screen either, as that is not good for your health. If you must, choose one form of entertainment. That way you will certainly get the most value for your money.
However, you don’t need cinemas or subscriptions. There are many other free forms of entertainment. Use your imagination and you will be able to make a huge list. Remember, entertainment doesn’t have to mean watching a screen, although there are plenty of free videos and movies on YouTube.
You can be entertained by watching people in the park, walking around a shopping center, visiting numerous historical buildings or centers, camping in the backyard, reading a good book… I could go on and on… can you think of more?
Spend Time on You – Stay Healthy
Finally, spend time on you. Spend time exercising, eating healthy foods, avoiding bad (expensive) habits such as alcohol and cigarettes, and making sure you sleep well. You can save yourself visits to the doctor when you’re healthy, and therefore save money from medical bills.
Living well doesn’t need to be expensive. You can live well on a budget by developing frugal habits. You will definitely save money, but you’ll also realize that you’re happier with what you have.
