“The lack of money is the root of all evil” – Mark Twain
Of course! If you don’t have enough money in your wallet, it will be impossible to cope up with your life’s requirements. You can’t fulfill your life goals and ruin your financial life due to a lack of money. But it’ll take some serious strategies to save enough money for your daily needs.
Building up wealth needs a lot of hard work and dedication. Not only you have to put many years of hard work into the career, but you may also need to be disciplined about the money you earn.
If you want to become serious about money matters and want to grow your bank accounts, you should maintain frugal lifestyle habits to accelerate your savings. By implementing a few simple but unique frugal habits, you may boost your savings and cherish a happier life. 12 Frugal habits you should grow in your life
#1 Prepare food from scratch
Start your frugal life by avoiding junk food and eating out at expensive restaurants. You must prefer making your own meals at home. Also, freeze any leftovers for emergency purpose or to use them as next day meals. This applies to food prepared at your home, and meals are eaten out at restaurants as well.
#2 Pay yourself first
You must put a good amount of money into savings accounts and investment accounts rather than spending that money for entertainment purpose. This may sound like dull to you. But in future, you’ll be thanking yourself for making such a wise decision and to secure your future financial life through this form of frugality.
It’s not like that you can’t have fun at all. Make sure you save a decent amount and then spend money to entertain yourself, with caution.
#3 Buy household supplies in bulk
It’s quite cheaper to buy essential commodities in bulk. These supplies may include – toilet paper, trash bags, perfumes, soap, shampoo, toothpaste, dental floss, earbuds, and many other groceries. If you buy things in bulk, you might get good discounts and offers from stores. You may refill your supplies when you see such items are on sale. It saves your time, money, and reduces inconvenience.
#4 Start shopping second-hand goods
Start checking thrift stores, local auctions, consignment stores, and online websites like Craigslist, eBay, and Freecycle to buy second-hand goods. Don’t go for something new if you can get the same product second-hand at a lower price. If you don’t find what you want, it is better to wait or buy the item new. But somehow, buying second-hand good may actually help you to reduce overspending and reduce your credit card debts.
#5 Start seeking discounts, coupons, and ways to reduce expenses
It is one of the best spending habits you can practice now on. Become a penny-pincher and start looking for discounts, attractive sales, coupons, rewards or loyalty points. Small discounts may add up and give you a decent saving from your monthly expenses.
#6 Don’t max out your mortgage
You might have a good credit score and other conditions to get a large mortgage loan approved. But that doesn’t mean you should use all of that approved mortgage loan. Being a home buyer you might want to borrow as much as possible when you are house shopping. This habit can make you cash poor or your house may go underwater.
What’s the solution? Follow the path of frugality and buy as much house as you can afford, comfortably regardless of how much mortgage you get approved for.
“If you would be wealthy, think of saving as well as getting.” – Benjamin Franklin
#7 Take advantage of community resources
Practically, in many many towns and cities, the communities have a lot of free or low-cost resources that people can utilize. These activities may include – outdoor concerts with free entry, sponsored public skating and swimming hours, drive-in family movie nights, community parties, etc. Being a frugal individual you may use these facilities and get books/movies from the libraries anytime you desire.
#8 Get your health checkup each month!
Annual medical checkups are quite important for staying fit and healthy. It is quite normal that we hate to visit a doctor, but most insurance companies invest a good amount as fees for one well visit a year. You should get all the checkups done asap.
All these medical tests like blood tests, mammograms and other physical tests might find a lot of health problems in you. But if you initiate health check-up every month, you may easily avoid several health issues and reduce medical costs.
#9 Have a side hustle
One of the best ways to save money is by making more money. Use your other skills like painting, writing, singing, and knowledge in other fields like tech, web designing, web-developing to earn more money. Fortunately, the internet has given us the options to make money from home that doesn’t involve another stressful 9 to 5 workload.
Living the super frugal life can be easier if you have some extra income in your hands. So, having some side hustles along with your regular job can cover your credit card bills without hampering your monthly budget.
#10 Learn some new skills
Hobbies make you a more well-rounded individual. Some hobbies may even pay you back.
Learning minor household or car repair tasks in your spare time could save you thousands on contractor or mechanic fees. The more you know how to do, the less money you’ll have to spend hiring professionals.
#11 Pay off your high-interest debts first
Living a frugal life will be worthless if you can’t save money. And believe it or not, you can’t save enough money if you have a huge debt load to pay off.
Whether it is a credit card debt, payday loan debt, medical bill, or a personal loan, you need to pay off the high-interest debts first. Initiate a debt avalanche method and pay off all your debts in a descending order considering the interest rates. Practically credit card debt carries the highest interest rate among others, so opting for a credit card consolidation option may also do the work for you.
#12 Maintain an emergency fund
No matter how much money you earn each month, unexpected expenses can rise up at any point of time to disrupt your monthly budget and drain in your savings account.
As per the professionals, creating and maintaining an emergency fund is equally important as creating a monthly budget. It is advised to invest 20% of your paycheck towards your emergency fund.
Certain things might worth a few dollars extra. But they might also give you some good savings in the long run. So, being frugal doesn’t mean you can’t buy an expensive dishwasher that’ll save more power and comes with a good warranty. Save money when you can, spend it on worthy things, that’s the prime motto of being frugal.
“If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.” – Edmund Burke