Frugal living is a wonderful and life-enriching experience. It comes with many benefits and offers a promising financial future.
Living in frugality might not seem very appealing to some. That’s because it includes budgeting, pinching pennies and making use of coupons. However, frugal living offers a lot of life-enriching benefits.
Adopting the frugal lifestyle can be shocking at first. That’s because we are used to spending beyond our means. Often, we disregard our toll in order to feel the sudden excitement of purchasing something we like.
On the other hand, you might be surprised that making the transition to the frugal lifestyle would lead to more freedom to pursue your passions in life. Yes, you got that right. At first, you think that spending less will hinder fun and exciting activities.
We can’t blame you. Most of us thought it that way at first. However, we came to realize that living a frugal lifestyle tends to improve our financial situation. This means that we leave the living from paycheck-to-paycheck.
Now, does it ring any bell? If so, these are some of the other known benefits of frugal living.
- You become financially creative (You try to find the best possible deals like shopping in multiple stores, DIY, using cashback apps, seeking weekly ads for online coupons, etc.
- More money to save and invest
- Offers higher risk tolerance for investing
- Gives you financial contentment
- Improve your net worth
- Opportunity to give back
- Confidence during financial storms
- Reduces financial stress
- Retire early
Are you ready to adopt the frugal lifestyle? Here’s our 5 simple frugal living hacks to save money.
Practice gratitude instead of trying to keep up
Living within your means works magic. Stop trying to keep with the latest trends and Instagram feeds. This often leads to stress and depression. The truth is, trying to keep up with your friends shows insecurity while the experience doesn’t really suit your best interest.
In fact, it doesn’t bring joy and peace into your life. It’s like a rat race. You keep working harder and harder but you’re going nowhere. It’s a life that is only fueled by comparison. Do the opposite instead.
When you practice being grateful, you attract more joy, peace and contentment in your life. A study from Harvard Health shows that gratitude is strongly and consistently associates with greater happiness.
On the other hand, keeping up with the latest trends will run you dry. Additionally, there will always be someone that you need to keep up with. It’s an endless cycle of want and insecurity.
Cut your food budget in half
This is one of the best frugal living practices to quickly reduce unnecessary spending each month. With your food budget cut in half, it will prompt you to spend less on groceries and eating outside in restaurants.
Studies show that an average American family spends about $800 on food each month. If you nix out on eating out and stick to your meal plan will significantly reduce your food spending. However, this requires you to create a plan.
Weekly meal planning worksheet will let you organize and plan your meal for the whole week. The meal plan also allows you to save more money when you’re doing your grocery. Moreover, you need to stick with your grocery list and compare prices. Make sure to check everything twice and never deviate from it.
This will help you find the best deals, cancel overpriced grocery items, and develop the discipline not to spend a dime for items that are not included on your list.
Spend less on entertainment costs
Another significant frugal living hack is to cut costs on entertainment expenses. That’s because the average American family spends almost $300 a month on entertainment alone. Moreover, you need to check your monthly internet and cell phone bills to get a better view where you need to spend less.
Likewise, to save more money you might want to check these things:
- Music concerts
- Video games
- Buying electronic gadgets
- Cable or satellite subscriptions
- Christmas shopping
- Fun money or blow money (personal monthly spending)
- Gym memberships, golf, etc.
- Recreational activities such as playing arcades, skiing, miniature golf, bowling, recreational activities, etc.
Cut spending on expensive clothes and shoes
Clothes and shoes contribute to about $100 on an average American family. Cutting this spending in half will give you more money on savings. One of the best ways to do this is to set up a clothing co-op. This works especially well if you have children.
This involves swapping clothes with your nephews and and nieces, children in your neighborhood or your local church. Aside from having a good time and developing healthy family and community relationships, this method could give you added savings.
Spend less on monthly home utility costs
Home utility spending is another important area for living frugally. Most families spend a significant amount on housing expenses. One of the best ways to generate money if you own a big home is to have your home rented. Spare bedrooms are a good place to start.
You can post them on Airbnb or Booking.com. This allows you not just money for savings but it generates money for you as well. Aside from earning additional monthly profit you can also meet amazing people.
In addition, check these other areas to save more money:
- Refinance your home when interest rates dropped but make sure to opt for the shortest term.
- Talk with your insurance agent to find ways to lower your home or renter’s insurance
- Pay-off your mortgage. The earlier, the better.
- Opt for a smaller, cheaper home if your current home mortgage payments pinches your budget.
- Rent a more affordable place.
- Consider living with family or friends.
- Get a roommate. (If you’re single.)