In today’s world of uncertainty and economic downfall, it is very important to live a frugal life. But, what is the meaning of living a frugal life? Living a simple life without spending excessively on unnecessary things is known as living a frugal life. The term frugal is used both in the positive and negative sense. In a positive sense, it means that a person lives a simple lifestyle and is careful about the way he/she spends his/her money. In a negative sense, it means that a person is not willing to spend his/her money under any circumstances.
A frugal life does not mean that you have to live a deprived life. It means that one should learn to spend money reasonably, without making an unnecessary expenditure to live a happy life. To make savings, there is a need to bring adjustments in your life. In this article, some of the best frugal living rules have been summarized which would help in knowing how to live a normal lifestyle.
- Reduce and reuse– The very first thing that you need to do is consider buying things that you need. Extra pennies could be saved by keeping a check on the number of things that you buy. You simply need to reduce the number of things that you purchase. Consider buying things that can be reused in the long run. Using single-use products does not only lead to excessive spending but you will also be generating an excessive amount of waste. Think about all the single-use items that you use daily. Substitute them with items that can be used multiple times!
- Spending should be less than your income– Your consumption should always be less than your earning. To do this, you have to know how much you earn every month. This should not only include the salaries that you earn from your job, but the income that you earn from side gigs should also be considered (if any). Calculate the total amount of money that you spend. The best way is to categorize your expenditure. For example, you can make categories like Food, Travel, Entertainment, etc. Now calculate your spending on each of the categories to get the results. This will give you an idea of where the bulk amount is being spent. Likewise, you can reduce expenditure and save more!
- Sell what you don’t need– There are many things at home which you do not use at all. Open your shelves, wardrobes, and old boxes that have been left untouched for several years. If you do not wear certain clothes, or if you have extra TV at home, why don’t you consider selling them? There are various online platforms where you can sell your items. The general thumb rule is that, when you do not use something for a year or more, the chances of using them are minimal in the future. By selling your unused items, you are not only earning but also creating opportunities for others in the community to have access to things which they need the most. You can sell anything whether it’s a book or your old clothes!
- Don’t get into debt– While a credit card can save the day from time to time, using easy credit as a way to finance your lifestyle can have disastrous consequences. Credit cards are the worst enemies. The credit card owners tend to use these cards without giving a second thought. There is a need to stop this urge of using these cards for making purchases. When you put a reduction on the credit card debts, it becomes easier to repay the balances as well as reduce the interest charges.
- Plan your menu– Having a meal chart is one of the best ways to save money. This helps in making a list of only those grocery items that you will need for the week. You can buy only the ingredients that you need for the weekly menu and hence, there will be no wastage of food. Menu planning does not only help in saving your money but also your time. It allows you to cook your meals in batches so that you can have some extra time to do other chores.
- Look for a side hustle– Side gigs helps in generating extra income. Look for online jobs or take tuition classes or you can register yourself with online job platforms to find a source of generating extra income. Nowadays, there are numerous opportunities where people can work from home and earn a handsome salary. These side hustles have become a way of making extra money, besides their daily jobs. There are 3 reasons how side hustles can help: I) it is empowering to have multiple income sources, ii) this extra income can be used for repaying loans and, iii) it can be used for creating wealth.
- Do not buy unnecessary things– To live a frugal life; it is important to know what to buy and what not to buy. As mentioned above, a frugal life doesn’t mean that you will have to live a life of deprivation. Rather, it means that one needs to make responsible and conscious spending. A responsible shopper can enjoy huge benefits like you can save money, can have extra space at home, can contribute to the environment by reducing wastes, and most importantly, an individual can live a happy life.
- Travel cheap– Frugal living doesn’t mean that you will have to give up on your travel goals. There are certain ways by which you can save money while traveling. Some of the best ways are- using a price comparison website for comparing hotels, carrying your meals, using budget-friendly accommodations, drinking free water, have street food, use discounts and vouchers, travel during the off-season, choose complete package vacations, travel in groups, etc.
- Exercise at home– We often spend lots of money on gym memberships. You can exercise as much as you want when you are at home. You can find the best workouts on internet and perform them at home. At the same time, you will be saving your travel cost to reach the gym! Exercising at home is a better option that spending huge sums on gym subscriptions.
Living a frugal life is not at all a tough job. By following the above tips, you can easily increase your savings. Once you become habituated with this lifestyle, you do not need to pressurize yourself for living a parsimonious life. However, the habits can be inculcated only when you realize its benefits!