The Benefits of a Frugal Lifestyle
Living a frugal lifestyle isn’t just for those short on funds. Regardless of your financial state, it never hurts to save money. Plus, it’s better to get used to frugal living before you have to get forced in to it for a variety of reasons. In fact, there are many wealthy people who enjoy living below their means such as Zappos CEO Tony Hsieh and Warren Buffett who still lives in the same home he purchased for $31,500 in 1958. Living the frugal lifestyle does not mean you’re overly cheap or tight. It means that you have good common sense when it comes to money.
Can you picture a life where you never have to worry about money again? You could have a nice-sized nest egg in the bank, no debts and a solid plan for retirement. There are many people who know what this feel like, and they aren’t C-level executives.
The reason they have this feeling is because they live below their means and invest the rest. It sounds easy because it can be. With money being one of the top stressors for Americans, being frugal can help. If you can stick to your budget, save and not try to buy everything you want then you can better cope with life’s unexpected challenges.
We live in a society that loves to buy things. Plus, a lot of people are killing themselves trying to keep up with the Joneses. Maybe your sister posts the best Facebook pics of her constant vacations, and you haven’t taken a trip in years. It helps to note that keeping up with others is a lost cause.
Why follow in their footsteps when you can create your own? Just because they don’t understand frugal living doesn’t mean you have to ruin your bank account to please them. Don’t get bogged down by what other people are doing with their money. Your frugality is a means to an end.
Create additional income streams
According to an article on Outdoorsy, some people have made an additional $26,000 annually just by renting out their RV. There are many ways to make extra income without having to apply for another job. You can invest in dividend stocks or rent out a room in your home.
Nonetheless, even if you are able to secure several streams of income, you should not spend as if money is going out of style. You’ll save more if you maintain frugal spending habits even when you are making more money.
Stick to a budget
You can’t live a frugal life without a budget. This includes knowing what you have coming in, what you spend and what you have left over. With this information, you can set a budget for food, clothes, rent and more. Try shopping at places that are cheaper, look for sales and purchase second-hand clothing.
If you like coffee, make it yourself–don’t buy overpriced coffee at cafes in your city. You should also have a budget for miscellaneous items and savings for when you get sick. Then, track your spending. The objective is to get a realistic idea of where your money goes and how much you are spending.
Frugal living isn’t just for people who can’t stand to spend a dollar. It’s for anyone who wants to live without stressing over money.