Frugal Living Tips With the Biggest Impact
Have you tried frugal living and decided it wasn’t for you? Perhaps you weren’t using frugal living tips with the biggest impact.
Are you ready to learn about frugal living tips with the biggest impact? If you want to start living frugally, these are the tips I recommend to help you save money and live within your means.
If you want to live on the cheap, it only makes sense to do what will work, first and then use your money extra money to start building your bank account.
#1 Make a Budget
Creating a budget can help you with your financial goals. A Budget will help keep your spending in check and give you a good sense of where your finances are.
Many complain a budget is too confining. But something else that its confining is the feeling of being in debt and having constant stress surrounding you.
A simple budget will help you keep track of your input versus your output, monetarily speaking.
First, jot down your spending for the next few weeks. This should include bills, transportation, food, entertainment, clothing, subscriptions, morning coffee, and any other thing you buy. Once you have a good idea of how much you spend, subtract that from what you make. If you are negative, now is the time to look at where you can cut back. Next, make a list of things that are extremely important to you. These are items you will keep in your budget. Yet, after taking inventory, cut that gym membership you have only used twice in the last year or the magazines that are piling up in your house. You get the idea.
The point is, find things you can cut so you can live below your means, and as time goes by you will be able to pay down debt and start building a surplus of money for an emergency fund, vacation fund, car fund, and anything else that should be included in your savings or sinking funds.
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#2 Avoid Debt
Use your budget to figure out how you can save up for purchases. It also helps to build up an emergency fund. I suggest saving at least six months, but preferable nine months of your living expenses in case of job loss.
If you are used to using credit cards to pay, know that you will often spend more. According to a study done by Drazen Prelec and Duncan Simester, professors at the Massachusetts Institute of Technology, you are likely to spend more when using a credit card. Research shows, unless you are immediately paying your credit card bill upon purchase, you avoid the feeling of negativity associated with spending money. You often spend more when using a credit card. So it is best to leave the plastic at home.
Credit card bills quickly add up, and people often get into debt without realizing it. As your debt grows, it becomes increasingly difficult to pay it down.
If you are in debt, consider using the debt snowball method to pay it off. With the debt snowball, start by paying the smallest debt down first including more than the minimum payment. After the first dent is gone, start with your next biggest debt adding the money you were using the pay down the first debt into that payment so you can make an impact quicker Finally, continue paying down your debts until you are debt-free.
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#3 Live Below Your Means
Learning to live below your means will benefit you greatly if you are trying to save money. If you learn to live below your means, you can begin to build up your savings and pay off debt.
Living below your means simply means spending less than you bring in. People often get in the habit of using credit cards and spending way more than they earn. Yet, if you create a simple budget as mentioned above, you can determine how much you need to spend each month and cut unnecessary spending.
#4 Meal Plan
Meal planning will save you so much money on food. If you know what you are going to make, you can make a list when going to the store and stick to it. Then when you are tempted to order take out, you will be able to fall back on your meal plan and know you have all of your ingredients to make your meals.
You will not be tempted to run out to the store, where you will most likely spend more money than you anticipated.
Also, you can avoid spending additional money on take-out or restaurants. If you want to save money, use meal planning to keep your food bill low.
#5 Buy Used
Thinking of making a big purchase? Why not check second-hand items.
Buying used is a frugal tip that has a huge impact. You can literally save thousands each year, by buying second-hand. You can often find name-brand items that are close to new or gently used for a low price.
It pays to go thrifting once in a while.
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- 46 Frugal Hacks to Stop Living Paycheck to Paycheck
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#6 Learn to Wait
If you have the desire to impulse buy, learning to wait can help you save money. Patience is a frugal hack that will save you money.
If you see something you want, wait a few days to see if the desire is still there. Then it may be a purchase worth making. Yet, if that desire is gone, obviously you don’t need it.
If it is a big purchase, try saving up for it and make sure to plan your purchase in your budget so you don’t overspend.
#7 No spend Weeks
During a “no spend” week, you don’t spend anything. To prepare for a “no spend” week or weekend if you want to try it, is to make sure you have your meals ready and bills paid prior. Then find free or frugal activities. During your no spend week you will:
- make your food at home
- find free activities
- no online shopping
- no pricey rides
- make plans to hang with friends at home
Some allow for a small budget during the “no spend” week if there is something absolutely necessary such as transportation to work. So you can choose which will work better for you.
Trying a “no spend” week will help you get a grasp on how much miscellaneous purchases you make, and allow you to be more accountable. You can then decide what is really important and how much more you can save every month.
#8 Downsize to One Car
Are you a two-car family? Think of all you will save by downsizing to one car. Let’s face it, owning a care is expensive. If you own a car you have probably paid for some of the following:
- car insurance
- car repair
- oil changes
If you are carpool with friends and get rid of one of your cars, this will make a big impact.
#9 Ditch Your Cable
Cable prices have skyrocketed over the years. At one time, our bill went up to almost $200 per month. That is INSANE! We decided to ditch our cable, and now opt for cheaper options such as Netflix, Hulu, Disney Plus.
If you are ready to ditch cable you can save so much money over the course of the year. If you are only paying $10 compared to $200, that is a huge difference and could be life-changing if you are trying to pay down debt or start an emergency fund.
Sign up for Hulu here
Sign up for Disney + here
Sing up for Netflix here
#10 Brown Bag It To Work
Taking your lunch to work instead of buying a pricey $10 salad, can save you a ton! If you often buy food from your work cafeteria or go out/order out with co-workers you probably already know how expensive this food can be. By packing a lunch, you can drop your lunch bill down to $3/4 by buying snacks and drinks in bulk and making a sandwich. Trust me, your wallet will thank you. You can still plan a lunch date with a co-worker a few times per month if it is something you enjoy, but still save money by packing a lunch every other day.
Frugal Living Tips With the Biggest Impact
Have you tried frugal living and decided it wasn’t for you?
If you aren’t ready to live a frugal life, try using frugal living tips with the biggest impact to save money. If they save you a few hundred dollars per month, it is well worth it. Think about what you can do with your newly found moeny. Perhaps you can build a savings account, start an emergency fund, or maybe take that vacation you have had on your mind. Whatever you do with your savings, enjoy and consider using more frugal living tips to live below your means and pay down debt, and build wealth.