Making the choice to live a frugal life has been a game changer for me. This lifestyle shift helped me generate more savings, settle my debts, accumulate an emergency fund and manage a comfortable life pan on smaller expenditure. Being frugal entails budgeting judiciously and minimizing waste, but it doesn’t translate to being stingy. In fact, frugal individuals prioritize conscientious spending and maximizing resources, striking the perfect balance between saving and astutely managing money.
Embracing frugality can be an effective strategy to achieve financial objectives. Committing to a frugal lifestyle often results in initially reduced spending. But don’t worry, it’s possible to enjoy frugality without feeling you’re missing out.
DETERMINE YOUR PRIORITIES
The first step in adopting frugality is defining what truly matters to you. Frugal living aligns spending and saving with one’s values, hence, it rarely feels like deprivation. This alignment can lead to a deeper sense of fulfilment, ensuring that money invested reflects your priorities. To identify these priorities, try reflecting on the following:
1. What would you indulge in if money was not a concern?
2. Are there any past expenditures that you now regret?
3. What financial decisions make you proud?
4. When do you feel most satisfied?
Reviewing your responses will highlight the things that make you happy and are genuinely important to you. You might realize that your current spending does not reflect these values. By reorienting your budget towards these core values, you’ll see a shift in your spending habits.
ELIMINATE TRIVIAL EXPENSES
If money left for value-based spending seems insufficient, minor sacrifices might be needed. This can start with eliminating unnecessary expenses to free up some of your income. For me, this involved removing expenses that did not bring joy or enhance my life quality. After realizing my true values, I comfortably eliminated costs like my cable and gym membership, high-end cell phone bills, branded outfits, and even IKEA furniture.
Understand that being frugal doesn’t equal eliminating fun. It also involves cutting out needless expenses, such as heavy interest payments on debt. Hence, considering refinancing your debt to minify your interest rate or monthly payment is a good idea. Aim to work on expenses that aren’t crucial, their elimination wouldn’t feel like sacrificing too much. The joy and satisfaction of becoming debt-free, experiencing travel, spending quality time with loved ones, and being outdoors more than compensated for these cuts.
PAY YOURSELF FIRST
The secret to maintaining a frugality lifestyle is understanding the reason behind your choice. Are you doing it out of necessity or preference? The beauty of frugality is how it drastically enhances your financial situation enabling you to make a choice of whether you want to persist with the lifestyle or not. In my case, after my finances improved, I willingly continued to be frugal. This way, I could continue saving money and I found the lifestyle rather enjoyable.
One way of doing so effectively is by paying yourself first. This implies setting aside a portion for savings or settling debt before taking care of other bills as soon as you’re paid. This guarantees financial freedom while allowing you to enjoy the rest of your income guilt-free.
PICK UP A NEW SKILL
Frugality encourages valuable skills. In a fast-paced society where outsourcing is prevalent, insourcing could be a cost-effective alternative. Plus, acquiring new skills could result in substantial savings and possibly become a fun hobby.
BUDGET FOR FUN
As a young student and mother, I learned to have budget-friendly fun. I entertained myself and my son through exploring affordable leisure activities. There are numerous low-cost and free activities available – check libraries for free events or movies and your local park district for family-friendly events. It’s also worth checking local event listing websites or using coupon and deal sites.
