Monday 2 February 2015

Live A More Frugal Life

Living a frugal life can grant a lot of freedom, even in uncertain economic times. Try these easy steps to start baby stepping your way to financial freedom!


Instructions


Live a More Frugal Life


1. Assess your situation and decide why you want to live a more frugal life. Is it a temporary situation that you want to save for, like debt payment, vacation or a downpayment for a house? Or is it something that you want to commit yourself to on a regular basis for other reasons? Frugality often starts with a goal, and having that star to reach for can make necessary sacrifices a bit easier.


2. Decide what you need to live. Wants are nice, but needs are essential. Needs include food, shelter, etc. It is amazing how little you truly need, if it came down to it.


3. Once you've established a goal and your determined your wants vs. your needs, take a hard look at what you are spending your money on. Think of everything, no matter how insignificant it may seem. What things can you cut from your budget? Be brutal. A lot of times people say "Oh, I can't live without cable/Netflix/daily coffee from Starbucks" but if you are really are serious about saving money, you may have to make sacrifices.


4. Decide on what do cut out and what to downgrade. Ask yourself hard questions: Do I really use that gym membership? Do I really need to subscribe to three magazines? Are the vegetables I buy each week rotting the the produce drawer only to be bought again next week? Think of everything you can possibly cut, and write down how much you'll save if you cut that item. Keep a running tally! If you cut out a $30 per month gym membership and $50 per month cable bill, that's $960 per year. A little bit here and there really adds up.


5. Find less expensive ways to replace anything you chose to cut. If you canceled your Netflix subscription, can you get movies for free at the library? Can you walk in the park instead of the gym? The worst thing to do is to have a poverty mentality, saying that you can't do something because you're frugal now. This is your chance to be creative and find alternatives! It can be easier than you think, if you keep your eyes and ears open.


6. The library is your new best friend. Read all you can about debt reduction, frugal lifestyles, and voluntary simplicity. Get on the internet and google "frugal blogs" or "personal finance blogs." Reading other people's inspiring stories will make you feel less alone and give you great tips to follow yourself. Consider starting your own frugality blog. Blogger.com and other services offer free blogs.

Tags: Decide what, frugal life, Live More, More Frugal Life, that want, Think everything