Frugal living means living better for less. You dont have to spend all your money to live a better life but sometimes learning how to budget your money, understanding its value, knowing your needs from your wants or by simply cutting on buying a coffee can do a lot in your quality of life.
Many of our actions and forces around us affect people and how we live. Frugal living ideas can be difficult to ponder up. In this article, learn 5 frugal living ideas that can help you start living a frugal life.
1. Stop wasting your money by budgeting your money.
The first step in stopping wasting money is learning how to budget. List down your expenses to see which ones you can cut off. If you spend too much on gas then maybe you can opt to take public transportation. If you don’t have a budget list then you should start making one. Having a budget will help you prioritize the things that you need to buy and track where your money is going.
For example do you have a gym membership that you pay xxx amount per month that you never use? Then you should cancel it ASAP! Do you spend PHP500 per week on eating out? Why not start cooking your meals at home instead. Start budgeting your money and stick with your budget so you can stop wasting your money!
2. Know the difference between WANTS and NEEDS.
Do you spend your money on things that are not even important to you? Do you buy the latest gadgets displayed on the store or the latest fashion fad? Consider spending your money on things that really matter instead. Know your priorities and know the different of wants from needs.
To simply put it: “Needs” are what we need to live while “Wants” include everything else we might like to have, but we don’t need to survive.
3. Surround yourself with people who are also frugal.
If you wish to become frugal then it would be easier for you if there are people who understand you. People or friends who are also frugal can your support group in living frugally.
You do not have to leave your current friends either but it will be probably wise to have at least one frugal friend or set of people who can understand you, give you advise and or join you in living a frugal life. Who knows some of your friends might be thinking of living a frugal life too or you might influence your friends to be more frugal as well.
4. Think about money in terms of real cost.
A minimum wage worker here in Manila usually makes around Php450 to Php500 a day. Just imagine if he loves to drink a popular brand of coffee every day? A large SB coffee usually costs around Php150. That’s already around 30% of his daily salary. Php150 multiply it by 20 working days in a month is equivalent to Php3000. In 10 months that person spends around Php30k for coffee alone.
In 10 years he spends Php360k for coffee alone! You can already buy a decent second hand car if he opted to just use regular coffee, 3 in 1 coffee or make his own coffee? Just imagine how much money he will be able to make if he invest that Php150/day in stocks or mutual fund.
Sometimes we should see things in bigger picture to realize the true cost of things that we buy. Just by making your own coffee or not buying your favorite SB coffee can already give you Php360K saving. So how much money do you have in your high yield savings today? Do you want to add Php360K to your savings account? If your answer is yes, then stop buying coffee and start mixing your own coffee starting today!
5. Don’t wait until the last minute to become frugal start today!
The longer you wait the harder for you to start. Waiting also until the last minute will almost always costs you more money. The easiest way to become frugal is by starting to plan ahead. Plan ahead and go to the grocery store with coupons or having a list of the things that you need to buy.
You can also save a lot of money if you plan ahead for birthdays or holidays as well. Sometimes buying stuff like a Halloween costume until October 30th will surely cost you more money than buying a costume online today but it will be best if you can make your own costume from already available resources in your home.
Try these 5 ways to be more frugal and you might be surprised by how much money you save and remember that being frugal does not mean that you spend your money wisely!