Living through financial recession is hard and painful. I know you’re trying hard and somehow living your life paycheck to paycheck. To make your life better, here are the 10 frugal living tips that actually works and helps you come out of debt and a broke life.
No, I won’t ask you become a finance and investment expert, but of course, ask you to save money. So, I won’t take more time, and jump right innn…. One last thing though, I have written all of these from my personal experience, so I can vouch for it…
(1) Follow The Latte Factor
The “Latte factor” is a concept taken from David Back’s book “The Latte Factor.” The book says that everyday small expenses – like buying your daily latte – adds up to extra monthly expenses. The dangerous thing about small expenses is that they too small to be noticed.
You can easily notice your money depleting when you spend $1,000 on one go, but you would have a hard time noticing the same $1,000 expense if you do it in 100 days. Of course, someone will say “what’s the issue with spending $10 daily?” But, this $1,000 matters a lot when you’re going through hard times and trying to be frugal.
If you really want to find out all the loopholes in your spending and want to squeeze the last drop of money, read the book The Latte Factor. Trust me, this book has helped me a lot through hard times. In fact, I still read the book whenever I have some time and have some issues with money.
(2) Create Strict Budget
A good budget is the root of a good and balanced financial living. If you have never tried living frugal, try it once without following a budget. You’ll lose track and lose streak within 24 hours. Especially when you have money. Because, it’s the hard truth, living frugally comes naturally when you’re tight on money.
I have said this numerous times before, and have personally experienced this too. A good budget is the key to living a balanced life, without ever facing any financial issues. And, since you’re thinking of living frugally, creating a strict budget is important.
Take help from books, blogs, and YouTube videos if you have never created a budget before. Here’s a hint: The very first thing you should note down is your total monthly income and your total monthly expense. Take the top-down approach rather than the down-top approach.
(3) Buy Thrift Products
Buying Thrift products is one of the best ways to cost saving. The prices are always less than half of the original price and if you have a good eye you can find exclusive products at supercheap prices. Do you know what’s the difference between living frugally and living in lack? It’s “Choice.”
Living frugally doesn’t mean you force yourself to live a life of lack and punish yourself by not fulfilling your needs, it simply means you’re trying to live a life on edge with minimal sources.
Most people buy clothes from thrift store, but you can literally buy anything from a thrift store if you can find a suitable thrift store. And, just in case you don’t know, if you’re ashamed of wearing thrift store clothes, even some billionaires shop from Walmart. So, why not you?
(4) Hunt Coupons
I don’t know whether you feel it, but whenever I get a few percent extra discount on a product by applying discount coupons, I get a kick out of it. When you’re planning to live frugally, and you’re short on money too, coupons can be a lifesaver.
As for me, the highest discount I have got was on a Puma shoe. Getting 85% discount on a quality shoe is a super-rare deal. I still have it, and the quality is still intact. So, hunting for coupons is a great deal isn’t it? Yes, it is! That’s why there are websites full dedicated on coupons.
These websites share discount coupons that are sometimes a great deal. The coupons actually work and can get you insane discounts. To live a frugal life, you’ll have to use every technique necessary to fulfill it. And, using coupon is one thing that no so-called “finance guru” talks about.
(5) Borrow When Necessary
By borrowing I don’t mean falling into debt by taking a huge loan, it’s about borrowing books, movies, and anything you need temporarily. Borrowing is a better option than buying since you would only have to spend a portion of the actual product’s cost and still get the whole product, though for a limited period of time.
The other reasons why borrowing is better than buying a product are: (a) You won’t have to think about Clutter, (b) You won’t have to spend huge money. Borrowing works great in some cases. For example, library works entirely on a borrowed basis. You can borrow books at fraction the actual cost and yet get full value of it.
That also doesn’t mean you should not buy things that are actually important for you, especially something that you use way to often.
(6) Cancel Overpriced Subscriptions
In the last few months, I’ve been seeing this trend of canceling subscriptions. Netflix is becoming way too expensive, and the quality is going down. Do you think it’s absolutely necessary to keep Netflix? Maybe yes, if having Netflix is absolutely necessary.
As I have mentioned before too, living frugally doesn’t mean limiting yourself on basic needs. A budgeting guru who claims that entertainment in unnecessary is missing a crucial part of everyday life. I’m not persuading you to drop every subscriptions out there and only read books.
But, you should cancel overpriced subscriptions and move on to other ways of entertainment. When you’re trying to be frugal, even $1 matter, A LOT!
(7) Start Side Hustles
Only saving money won’t work. Frugal living can become a better experience if you do something to increase income. And, when you already have a job, then the only option you have left is doing side hustles.
Check out these legit side hustles that actually makes money and aren’t like those side hustles that won’t pay you even if you have completed your job:
If you combine making money from side hustles and frugal living, then you’ll achieve the best balance between spending and saving. What’s better than having enough money to save and spend comfortably? Honestly, nothing. But, keep in mind one thing. Following a frugal lifestyle is even harder when you have enough money to spend. This is the sole reason why I recommended to create a strict budget.
(8) Follow 80/20 Principle
The 80/20 principle is a timeless advice. “What the heck?” was the first thought when I learned about the 80/20 principle and how potent it was in my life’s decisions. I won’t lie, but I heavily use the 80/20 principle in my daily life and every time it works great for me.
In the simplest words, the 80/20 principle (Pareto Principle) says: 80% of effects come from 20% of causes. Try looking at anything and you’ll find this pattern. Big companies make 80% of their profits from 20% of their product lineup. 80% of a company’s salary is spent on 20% on the workforce.
Likewise, in your life too, 80% of your life’s problems is caused due to 20%. But how can the Pareto Principle help you in your frugal living journey? Identify the 20%. See what are the things you spend the most money on. Successfully identifying the 20% will automatically make it easy for you to save money and follow a frugal lifestyle.
You can read the book The 80/20 principle to get a better, deep-down idea of how transforming it can be.
(9) Stay Inspired
Watch YouTube videos, read books, go through blogs. I’m not gonna lie, living frugally is HARD! You need constant discipline and reminder to not forget your goal of saving money and getting rid of debt.
Of course, the initial days are the worst, but, it’s harder later too. When you feel demotivated and think of abandoning living frugally, look for inspiration. You can watch YouTube videos, read real-life stories of people who actually lived through a frugal life to pay off all debt.
You can also read books about finance. Also, please stop reading too many books on saving money. Because, too much information is too bad! If you read too much about saving money, you’ll soon start having anxiety. So, know only what’s necessary and go with it.
(10) Practice Minimalism
Living a frugal lifestyle and practicing minimalism goes hand in hand. Miss any one of them and you have a high chance of breaking your frugal living journey streak. What’s more, practicing minimalism is about making room for what truly matters.
The first aspect of minimalism is getting rid of clutter. Removing clutter from your surroundings is a great way to not only make more space, but also to welcome positive energy in your life.
Here’s one thing you should keep in mind while following a frugal lifestyle: Focus on Needs, not Wants. This is a powerful statement that actually works and helps you save money, and also helps you come out of debt and a broke life.
