Frugal living tips for over spender! Here are the 5 ways to on how to live frugally. Learn how to live frugally the easiest way? Asked by readers of InvestmentTotal.com. Here we find the best and accurate answer for that question. Before we proceed in answering the question, let us first define the meaning of the word “frugal”. So that, we can easily understand the remaining context. If you will ask me, few years ago, I can’t control myself to spend all my money in non-sensical things.
Just spent all my money, enjoying the life. Buying all the things I want and before the month end, I have no money left in my pocket. I don’t want you to repeat the same mistakes. There are many benefits you can get if you will become frugal.
Meaning of Frugal
The meaning of the word “frugal” is economical, thrifty, not spending a lot of cash or not to waste your money. It simply means you have to take care of your hard-earned money. You only know the value of every dollar cents unless their already gone. To make this article sweet and simple, here are the five effective ways to live frugally.
Frugal Living Tips #1: Manage Your Finances
Learn how to manage your finances. How to manage your finances? Simple, by using other things such as envelopes, glass jar, bank accounts, etc. Get 4 envelopes and decide how much percentage from your income you will put money in the envelope. Have an envelope for necessities, envelope for investment account, envelope for giving and tithing, envelope for education, envelope for recreations.
A. Necessities: money to use for needs such as foods,tuition fees, household bills.
B. Investment Account: money to invest for future.
C. Giving and Tithing: every time you attend worship services, use the money in this envelope.
D. Education: use this money whenever you want to buy personal finance books or attend seminars.
E. Recreations: use this money if you want to watch movie, dine-out etc.
(Note: Be creative in managing your finances, the important thing is you are aware about your finances.)
Frugal Living Tips #2: Buy Only the Things You Need
This frugal living tip is very effective. If you want to become thrifty, buy only the things you need. Don’t buy the things you don’t need such as two or more mobile phones, why not buy only one. Do not shop every week, shop only once a month or quarterly.
Other frugal individual will only shop when they saw the things they need are broken and cannot be use. Do not change the thing if it is still in good condition. Do not impress other people by buying new things. Ignore the new gadgets, your mobile phone is still in good condition, don’t buy new one!
Frugal Living Tips #3. Have a Budget Plan
As I have mentioned in frugal living tips #1, you should manage your finances. Budgeting is one of the reason why you are overspending your money. Budgeting is very easy to make but it is also very easy to “not” follow. Be careful in making a budget plan, follow it strictly or else you will never be a frugal person.
Do not buy the things because you just want it (or it is in trends), if it is not in your budget, wait for some months, put money in your recreation account and whenever you have acquired enough money, it’s time to buy that thing. Who knows, when the time you have the money to pay for it, the price of the item decreased.
Frugal Living Tips #4. Think About Your Future
It’s time to think about your future. If you want to become financially free. Be frugal beginning today. Invest for your future. If you are familiar with Warren Buffett, he is a frugal man, living a simple life. But you know what? He is the 3rd most richest men in the world. Warren Buffett although he is a billionaire, he never bought an expensive things that decrease in value.
He bought an expensive things that increase in value, like stocks. Warren Buffet is the CEO of Berkshire Hathaway, Inc. It’s company’s stock is now the most expensive stock in the world with a stock price of $225,334 as of December 9, 2014. Imagine if you have 10 Berkshire Hathaway stock. You can just have it if you know how to save and invest money not to waste money!
Frugal Living Tips #5. Pay Yourself First
Actually, this should be the number frugal tips #1. But I make it #5. Because you don’t know what I mean if I say “pay yourself first”. This simply means you have to set aside money first for your investments, for your future. If you want to become financially free, pay yourself first.
Before spending all your money in necessities, recreations and other things, you must invest money first. You can open an investment account in the banks (trust account) ask the bank for it, mutual funds (there are guides in InvestmentTotal.com), stocks and other investment vehicles.
Other Frugal Living Tips:
These are very practical and easy to follow. If you want to become frugal, practice cooking your own food at house, avoid dining out. Walk and don’t drive to save money for oil and gas. Do change the stuffs unless it is not in good condition.
Practice pricing comparison when shopping, do not shop online and do not buy on convenience stores. stop drinking coffee in a coffee bar, mix your own coffee. Do not listen to other people when they criticize you wearing the same old clothes. As simple as that.
Learn Financial Education at InvestmentTotal.com
Now you know how to be frugal and save money. Do you want more personal fiance tips? Always visit InvestmentTotal.com, I am publishing articles about personal finances and investing tips. You may expand your knowledge by reading this blog whenever you have a free time. Aside from reading articles in this blog, buy a books, magazines, or attend financial literacy seminars.