Living frugally doesn’t mean you have to make extreme sacrifices. By incorporating these simple tips, you can save money and achieve financial stability without feeling deprived.
1. Create a Financial Plan
The first step to living stingy is to create a plan. This begins with writing down a list of all your goals such as getting out of debt, buying a house, or building an emergency fund. By focusing on one specific goal, it’ll be easier to create a plan and you’ll also be more motivated to reach it (just that number!). It’ll also be easier to decide which sacrifices to make and keep you motivated.
2. Activate Your Plan
The next step is to incorporate the plan into your daily routine. Do you need to set a spending limit? What expenses do you need to re-evaluate and change? Take out a bank statement of the previous month and look for expenses you feel you could cut out.
Maybe you can try brewing your coffee at home instead of buying takeaway, or buying a great crock-pot and cook more at home. If you want to keep a very tight budget, you can set a daily spending limit and make sure you don’t go over budget.
3. Evaluate Your Spending
Once you have your budget and plan in place for a bit, you’ll notice your habits changing and you won’t be tempted to overspend as much. If you’re able to keep doing this for several months, then you know you’re not going overboard. However, if you find yourself severely unhappy or struggling after one month, then maybe you need to relax the budget and give yourself more room to spend and ease into.
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4. Cut Expenses Drastically
Besides activating a plan and monitor general spending, cutting your expenses drastically will be important too. Look, I’m not a fan of depriving yourself of essentials or even some luxuries. But, sometimes your financial situations call for some more extreme measures. While I don’t recommend live in a shed in the woods with no amenities, you should look for ways to eliminate some expenses and cut back on others.
5. Start to Increase Your Income
Another thing you can look into is increasing your income to help you reach your goals and make living stingy a bit easier. This could be something as simple as completing surveys online, taking on some work in the gig economy, selling your unused or older stuff online, or doing some freelance work online. Working an extra hour or two every couple of days could pay off in the long run and help you reach your goal faster.
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This rating is one of the most common across the nation, and those who have it know that it creates a variety of lending difficulties. Thankfully, it is possible to improve your bad credit score past this subprime rating and get the loans that you deserve.
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Related: 10 Frugal Lessons I Learned From Being Flat Out Broke
I was living in the middle of a big city all by myself and paying my bills on a server’s salary. I had zero savings and was living paycheck to paycheck just to get by; frugal living was a necessity.
10 Frugal Lessons I Learned From Being Flat Out Broke
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If you’ve enjoyed reading our content and are passionate about learning wealth, managing your finances, and achieving financial freedom, we’d love for you to join our community! Click here to follow Invested Wallet for more.