Are you tired of constantly being broke?
Do you want to end this pointless circle of paycheck to paycheck lifestyle but just don’t know how to get started?
Although making money is a great option for your budget, good money management, and the ability to live below your means is what will help you survive even during a big crisis.
After all, it’s not how much money you make, it is what you do with the money that matters.
If you can’t manage $2000 dollars a month, making ten times can get you into financial trouble as you won’t know how to manage this much money.
Learning how to be frugal will allow you to have more money and time for things that are your priorities.
Take control of your money and behaviors, instead of letting your emotions take control over you.
Here are a few frugal tips and ideas that will help you save money and achieve your financial goals much quicker.
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Table of Contents
1. Start budgeting.
Creating and sticking to your budget is key to a better financial future. A budget is simply a plan that includes your monthly expected income and expenses organized in categories.
Even the best frugal living tips won’t help you if you are not aware of where your money goes each month.
A well-planned budget can help you spend less, pay off your debt, save more, and achieve your financial goals.
This article will help you make a personal budget in just 6 easy steps.
2. Buy in bulk.
Buying in bulk can definitely save you a lot of money but you have to be careful and compare prices as it isn’t always the best choice.
While deciding on what to buy in bulk, first you always should check the unit price somewhere on the price tag posted.
Also, if you want to buy food in bulk, get only something that you use. Otherwise, it can go bad before you will get through it. This way you’ll rather lose money than save.
Here you can find the list of websites where you can buy things in bulk.
3. Automate your savings and investments.
Setting up automatic savings is literally the easiest and the most effective way to save money. As the saying goes, out of sight, out of mind. Once you set it up, you can save a certain amount of money at regular intervals, whether it’s weekly or monthly.
You can ask your employer to do that for you. That way, each pay period a certain amount of money will go from your paycheck to your saving or retirement account.
However, if you have inconsistent income or your sources of income vary, choose a day of the month to transfer a set amount from your checking to a savings account.
Even if you don’t save much money every month, over time these automatic savings will add up and, in the future, they can cover some unexpected expenses that will come your way.
4. Increase your debt repayments.
Debt is a drain on your finances. So are the interests that go along with it. Many people end up paying back their debt twice when it comes to counting the amount of paid interests.
Paying off your debt fast is another great way that can help you live more frugally as you’ll save money on interest payments in the long run.
Ask your lender to increase your debt payments, even by a few dollars a month. It will help you save money on monthly interest bill and clear your debt faster.
5. Find ways to make extra cash.
Saving money is a great way to live a frugal life and become financially independent, but if you already live frugally, the best option to save more money is to increase your income.
There are so many ways that you can use to make money these days. Whether it’s freelancing, driving passengers, or selling y, our old stuff the options are endless.
You just need to find a way that you’ll enjoy and suits your needs. And if you’re willing to put in a little more hustle, you can build a solid income that can replace your full-time job.
Check out this great list of side hustle jobs and pick something for yourself.
6. Reduce your grocery bill with Ibotta.
Ibotta is a great app that allows you to get cashback from your groceries and earn some money by simply scanning your receipts, claiming your offers, and using coupons.
By using Ibotta you can easily save money on the things that you buy regularly. And once you hit the $20 withdraw threshold, you can claim to get your cash via PayPal or gift cards.
7. Save up for an emergency fund.
Do you have enough money to cover some unexpected expenses that can come up anytime? What would happen if your car, which is the only option that you can get to work broke down tomorrow? Would you have enough cash to cover the repair?
If not, you definitely need to make a plan on how to save for an emergency fund. It will ensure you against life unexpected situations and give you peace of mind.
No one wants to live one paycheck away from not being able to afford the basic needs.
8. Use Trim to pay your monthly bills.
Trim is a holistic personal finance app that provides personalized recommendations that can help you save money. It analyses your spending, so you can see where you overspent your money.
It can help you negotiate your medical, cable, internet, and phone bills by contacting your providers and seeing if they can lower for you.
Trim can also help you list subscriptions that you have (but might have forgotten about ) and cancel those that you no longer need or use.
Apart from canceling services, it also offers features like bill reminders, spend alerts, saving suggestions, debt calculator, automatic credit card payments, and many more.
Signing up for Trim is free, however, it limits your options of using an app. If you want to use bank negotiation, you’ll pay $99/year, which is totally worth it, considering the amount of money you can save every year.
9. Go with a smaller house.
Just because you can afford a 3000 sq ft house, it doesn’t mean you need to live in one. It doesn’t make sense to pay an arm and leg for space that you might not be using.
Living in a smaller house has its advantages! Not only do you pay less for rent/mortgage, but it also means less cleaning and maintenance for you and more energy efficiency.
10. Rent rather than own.
Never assume that buying is a better investment than renting. Considering the interests you pay on a mortgage and the costs of maintenance, buying is often much more costly than renting.
Whether you’re in the house or apartment, renting allows you a lot more flexibility than homeownership would.
It doesn’t tie you to living in one place for the rest of your life. You’re also less responsible for repairs, paying taxes and insurance, as well as keeping up with other expenses.
11. Sell things that you don’t need.
Frugal and simple living often comes along with owning less stuff. Decluttering your possession is an amazing exercise that can save you money. By doing it, you no longer have a need of buying duplicates of an item. Because let’s face it. How many times did you buy something you already had, just because you forgot that you owned it? It happened to me many times.
When you declutter you no longer spend time caring, cleaning, or searching for stuff.
Getting rid of stuff that you don’t use anymore and selling them to people who actually need them also allows you to earn some extra money.
12. Get used when possible.
Almost everything you need was once needed by someone else. So, when you feel like you lack something, first ask someone you know if they already have the thing you want. Maybe they don’t use it or don’t need it anymore and can give it to you for free or for a small fee.
Also, check local thrift stores and online websites such as eBay. You can find there pretty much everything from electronics to clothes, jewelry, sports equipment at bargain prices.
This way, you can get a slightly used but high-quality item and at the same time save a lot of money. Think about that!
13. Go to your library.
Your local library is probably one of the most underrated and overlooked tools that can make your frugal lifestyle easier.
The new hardcover version probably costs upwards of $20, so if you really need to cut out on expenses, the public library is a great alternative that can help you save money on books.
Libraries also often offer their members access to newspapers, e-books, magazines, online courses, and more. So, if you’re a geek like me and care about saving money, then definitely take a look at your library. You might be surprised!
14. Make your coffee at home.
Depending on where you live and what type of coffee you prefer to drink, you spend between $1 and $5 per cup on most working days.
Assuming that you get coffee takeaway at least once on a working day, that means you’re spending between $5 and $25 a week, which is between $240 and $1200 a year!
However, if you decide to brew your coffee at home it will cost you between 16 and 18 cents, which is only about 45$ a year!
Can you believe that just by cutting out your coffee expenses you can save over $1000 dollars every year?
Obviously, the amount of money saved will depend on how much coffee you drink, but just imagine where these $1000 dollars could go if you decide to change your daily habits.
15. Switch to home-made cleaners.
In the world of DIY and life hacks, there is absolutely no need for you to spend money on expensive, unnecessary cleaning supplies.
There are many cheap substitutes for these expensive items, such as baking soda or vinegar that work as effective or even better than them.
In fact, most DIY cleansers cost less than $1 to make, comparing to $5-$15 per bottle for most of the store bought cleaners.
Here you can find an article that will help you make your own cleaning products.
16. Switch to LED bulbs.
LED lightbulbs not only last many years longer but also are a lot more energy-efficient, which again saves you money!
However, if your current bulbs are still working just fine, don’t rush with replacing them with new ones. Do it only when the old ones blow.
17. Start some frugal hobbies.
There are so many great things that you can do in your free time, without spending a penny on them. Be creative and find an activity that you’ll enjoy.
If you like to work out, try to do so outdoors. You don’t need an expensive gym membership and fancy clothes to start exercising.
Taking up hobbies like gardening, blogging or sewing not only allows you to follow your passion but also develops the skills that can help you with turning your hobby into a career.
18. Take your lunch to work.
There are tons of 10-minute recipes on the internet that you can find and prepare at home.
Not only cooking your food may be healthier for you, but your budget will love it when you keep an extra $100 in your pocket each month.
19. Switch to a cheaper cell phone plan.
Living in a mobile world does not mean that you should be ripping off your money while paying for your cell phone plan.
Remember to always customize your plan to your needs.
Track how much data you’re actually using and stop paying for more than you need.
If you mostly spend time in places where you have a prevalence of WIFI hotspots, it doesn’t make sense to pay for an expensive unlimited data plan.
Also, there’s no need of having unlimited texts and calls if you use all those messaging and calling apps.
Frugal living and saving money shouldn’t feel like a burden and a sacrifice.
You don’t need to make all changes at once. It’s better not to as it can make you feel overwhelmed and give up before you even get started.
Remember, that every big change starts with a small step.
Commit to the change today, so you can have your money under control and spend it on things that really matter to you.