In today’s consumer-driven world, the art of saving money has become very vital. One way you can save is by becoming more frugal. Adopting a frugal lifestyle helps you build a secure financial future and cultivates a mindful and sustainable lifestyle.
Whether you’re looking to pay off debts, save for a big purchase, or reduce financial stress, implementing frugal saving tips can be an effective solution. In this article, we’ll explore the eight best frugal tips for saving money without sacrificing your quality of life.
1. Keep Track of Your Expenditure
One of the ways to get into an excellent money-saving habit is to keep track of your expenditures. Keeping track of your money outflow will help you to figure out your income distribution chain. With this information, you’ll have a clearer picture of the areas of your life you spend more on. Then you can figure out where to cut down expenses and where not to spend at all.
Several expense tracker apps can help you track your daily, monthly, and yearly spending. All you need to do is to pick the Best Expense Tracker App and start tracking your spending.
2. Separate Needs From Want
Despite the fact that low-paying jobs and not too good an economy have posed a threat to money-saving, the fundamental rules of saving money remain the same. In order to save, it is necessary to spend less than what you earn. However, this rule can be difficult to follow, especially if you do not fall into the higher income brackets.
Given the importance of saving, finding methods to set aside a portion of your daily, weekly, monthly, or yearly earnings becomes essential. To achieve this, it is crucial to distinguish between needs and wants and prioritize saving even from a modest income.
But what is the difference between needs and wants?
A need is a necessity (something that you can’t possibly do or live without). For example, we can’t do without wearing clothes, eating balanced diets, and having a roof over our heads.
On the other hand, a want is not a (necessity). It’s something you desire to have, but you can live a normal life with or without it.
For instance, you might want to dine in an expensive restaurant despite having a well-prepared meal at home. Similarly, you may desire the latest Android 10.5 phone even though your Android 7.0 device still functions perfectly fine.
In order to save effectively, it is crucial to distinguish between needs and wants. By prioritizing spending on the things that truly matter at the given time, you can allocate the remaining funds towards savings.
3. Try Cutting Down Services
There’s nothing as bad as spending all you earn without having any leftovers. This simply means living from hand to mouth. To save more, you need to review all the services you’re subscribed to and find those that your usage does not justify the amount you pay.
If you find services that their usage doesn’t justify the money you spend on them, then you’ll have to cancel them. There’s no point in spending much on services that you rarely use. Here are a few questions that you need to ask and answer to determine if a service is worth keeping or canceling:
- When was the last time that you used this service effectively?
- Is the service worth what you’re paying for it? Or can you find a cheaper one?
- Can you do without the service for now?
Once you run this analysis, cancel all the services that seem to be a want and keep those that seem to be a need.
4. Budget For Savings
Another way to get into the habit of saving is to budget for savings. Once you have an idea of what you earn and what you spend, the next thing is to arrange your recorded spending into a realistic budget. Your budget should highlight how your spending measures up with your earnings.
This will help you to plan your expenditure and, at the same time, reduce your outrageous spending. When making your budget, be sure to include irregular expenses like car maintenance or kitchen utensil replacement.
5. Set Savings Goals
Setting money-saving goals is one of the most recommended frugal tips for saving money. To do this, you have to think of what you’d like to save funds for.
Perhaps you’re planning a vacation, getting married, or even saving for retirement. Once you figure out what you want to save for, the next thing is to determine how much money you have and how long it might likely take you to save it.
If you plan to save for your children’s education or retirement, consider investing the funds. Though investment has a certain level of risks associated with it, it still opens when the market grows.
6. Cut Down Housing Expensive
Cutting down housing expenses is one of the most effective ways to save money. A U.S. Bureau of Labor Statistics study shows that housing expenses could be one of your biggest expenditures. Your savings could experience a massive boost if you could reduce your housing expenses by a couple of hundred of dollars a month.
Here are a few ways to reduce your housing expenses below:
- Downsize: Consider moving into a small house or apartment to cut costs.
- Move to a new location: Location plays a key role in real estate. Moving from downtown to the suburbs could help you save a few dollars.
- Rent out some rooms: If there is extra space in your house, consider renting it out to reduce housing costs.
7. Increase Your Earnings
As responsibilities increase, saving from your income may become very difficult. If you feel there’s nothing left in your income to save, then it’s time to increase your earnings.
Though this is not an easy-to-do task, everyone would do it if it were to be easy. But you could increase your income by adding a side hustle to your normal job or business. The good thing about a side hustle is that it doesn’t compel you to leave your job or business.
No matter the type of job or business you’re involved in, there’s a side hustle that’ll be a good fit for you. Check out our guide on Profitable Side Hustles To Play Off Debt In 2023 to find one or two side gig options that suit you.
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8. Avoid Debts/Payoff Debt Using Snowball Method
When it comes to saving, monthly debt payments are the biggest money suck. Debts rob you of your earnings. Hence, it’s important to say no to debts, especially the bad ones. The easiest way to pay off debt is using the Snowball Method alongside side hustles. The debt snowball method is a debt repayment strategy focusing on paying off small debts before moving to the larger ones.
9. Buy Used Instead of New
Buying used items can add money back into your bank account annually. This strategy is not only frugal but green. Purchase used clothing or products from sites like Facebook Marketplace, eBay, or Craigslist. Furnish your home from consignment stores, or shop at thrift stores for clothing. You will be amazed at how you will save.
10. Use Cash Back Reward Credit Cards
If you have a reward card, you could receive a cash-back each time you make a certain purchase. You could get a percentage back on eating out, travel, groceries, and more. Some reward credit cards have rotating categories, while others offer a flat cash-back rate on many different categories, so you don’t have to track your spending.
We recommend not spending your cash back immediately when you receive it. Instead, apply it to your bill to cut down your monthly payment.
11. Save on groceries
You can save on groceries by cooking with inexpensive ingredients, skipping delivery fees, and planning your meal before going to the grocery stores. By planning your meals beforehand, you avoid buying ingredients you don’t need.
Saving money on little earnings without sacrificing your quality of life is a challenging thing to do. But don’t let low income stop you from attaining financial security and stability. Take some time out to review your current earnings and spending.
Then apply the eight best frugal tips for saving money shared with you in this post to cut expenses and save more. Also, do not forget to always look for new opportunities to increase your earnings.