Taking the smallest steps in becoming frugal is a great way to help you save money. Saving doesn’t mean that you have to tighten your finances to an extent that will make yourself miserable. Financial experts always recommend that frugality will help you save valuable amount that can be spent for the rainy days. But how you do it will define the ultimate success in attaining your goals.
While some people have the nature of being frugal, there are some who are still struggling on how to become one. One of the major mistakes that many of us think is becoming frugal deprives us in enjoying the many good things out there that can make us live miserably in the process. If you find yourself struggling to learn how to become frugal without making yourself miserable, here are the top 5 frugal living tips that will help you save money more successfully, build your wealth and make yourself financially healthy and happy.
Tip No. 1 – Build your savings at least 20% of your paycheck
Financial experts always recommend saving at least 20% of your paycheck for the rainy days. While this may be difficult to attain this goal considering your financial circumstances, you can start doing so every three months. This will help you get a smaller amount from your monthly checks to cover for the 20% of your income as quarterly savings. Apart from being less burdensome, you can save a certain amount without sacrificing your monthly financial obligations. Here is how you can start saving from your paycheck:
- Set aside at least 10% of the portion of your paycheck for savings in the first month.
- For the second month, take at least 5% of your paycheck.
- Save another 5% of your paycheck on the third month.
- Follow the same cycle every month.
This will complete the 20% of your target quarterly savings and you will be surprised how much you were able to generate an extra fund without having to sacrifice your daily financial obligations. Taking out a small amount from your earnings will not make you live miserably but will allow you to gradually build your savings every year in a less burdensome way.
Tip No. 2 – You can’t control the stimulus but you have the power to control your response
Sometimes, it is difficult to live frugally when you find it quite hard to control your impulse to buy something. Frugal people are likely to exercise control over impulse buying and is able to spend time planning for their purchases. While the stimulus is there to entice you to buy something that you don’t really need, always make yourself in control to determine how you respond to the urge of spending more than necessary. Here are some ways to control your response to impulse buying.
- Ponder on before buying. Is it really something that you need or merely wants to have but can still live without?
- Make a list of the things you need before going on a shopping.
- Give yourself an option. While an item may be quite extravagant in its price, there are other alternatives that will offer you a cheaper option but can still address your needs.
As you learn how to control your response to your spending urges you are able to smartly spend for the things that you need without making yourself miserable at the same time. You certainly don’t have to deprive yourself from owning or buying something but you are able to look for an alternative that will help you save some money along the process.
Tip No. 3 – Initiate to build your income
Whether or not you have the money sufficient to earn you a decent living, the opportunity for building your income is always around the corner. It is your choice to grab this opportunity or not. Frugal living can help you make yourself financially healthy and one way of doing this is to initiate something to earn more income. If you have sufficient income to sustain your daily needs and financial obligations, this extra income should go directly to your savings. Here are some ways to live frugally with the monetary benefits:
- Make an inventory of your old stuff and sell them on eBay, initiate a garage sale or sell them to your friends. Don’t buy a replacement for these stuffs when you don’t really need one.
- Erase the concept that you have enough earnings. Try to apply for online jobs in order to add more income for savings.
- Recognize your talents and skills and make money from it.
Looking for an extra income is another frugal way of building your wealth. It is more satisfying by taking a job that you like to do. Getting rid of your old stuff will give you more space at home while giving you the extra bucks to add to your savings.
Tip No. 4 – Hunt for the best bargains
Hunting for the best bargains will essentially help you to spend your money for something cheaper without sacrificing the quality of the items that you buy. Frugal people are good bargain hunters and this practice will help you maximize the value of your money while giving you the opportunity to set aside a significant amount from your budget for savings. Here are ways to hunt for the best bargain for your needs without making you feel miserable of the consequences:
- Shop online. The internet will give you more options of the best deals to shop for.
- Cut coupons and freebies to get a cheaper discount or other freebies.
- Choose the less expensive items than its expensive counterpart and evaluate whether it can offer you similar features and benefits.
Trimming down your expenses will help you save a significant amount to build your savings. Finding the practical deals and best buys will not deprive you of the things that you want to buy but it will give you lesser costs to pay for in the process.
Tip No. 5 – Take every opportunity to save everyday
It is possible to save money every day if you know how to control your expenses. Frugal living will dictate you to spend only for the things that you need and to look for some means of buying what you need at a lesser expense to you. Every day offers an opportunity to save your money. Let prudence guide you in your buying and spending decisions. Here are ways to grab the opportunity to save daily from unnecessary expenses:
- Skip buying a designer item. Practicality will tell you that you can buy a similar item with the same feature and benefits without having to spend so much.
- If you love watching a movie, skip the theater and rent a good DVD instead.
- Ask for a discount from a seller. A good PR just might work and you can convince a seller to give a wonderful discount that will amount to growing your savings.
- Skip a visit from the mall whenever you don’t really need to buy something.
Taking advantage of every opportunity to avoid making yourself to spend unnecessarily will help you learn to live simply and exercise a more prudent buying decisions all the time.