Live Frugal and Save Money

Many people confuse frugality with cheapness, but that is not what frugal means. Frugality is a life style in which a person practices restraint in the acquiring of and resourceful use of economic goods and/or services in order to achieve a long term goal.

An example: you can buy a new car or a used one. You choose to buy a used car because you have a long-term goal, an early retirement for instance. The money that you save because you bought the used car instead of the new car you put in a savings account for your early retirement.

Most people that live frugal apply the same strategies to save money, for instance:

  • Reduction of waste (food for example)
  • Changing costly habits
  • Suppressing instant gratification

They try to do this by; using self-restraint, seeking efficiency, defying expensive social norms, knowing the common traps, using free options and staying well informed about changes in commercial markets.

So, how to start living frugal. First you need to set your goal and this can be anything you want. Most goals cost money, so the second thing you need to do is to look at you’re live and spending habits (where can you cut some expenses.) Try to work – step by step – towards your goal.

Some of the things you can do are:

1) Friends and family

Do you have friends or family who always want to do expensive things? To avoid these expensive things you need to learn how to cry poverty, with some style of course, by learning some standard phrases. For instance: if your friend always says, “Let’s go to the movies” you react with the phrase “Nah, let’s stay at home and rent a DVD.” It’s less embarrassing than you think, because more people are in your shoes than you think — and they’ll be grateful you spoke up.

2) Haggle

You will be amazed what you can save if you try to haggle on prices, fees and interest rates. Don’t be embarrassed, the worst thing that could happen is that you have to pay the normal price.

3) Compare prices

First, never buy on impulse; ask yourself if you need that product. If so, then you must compare prices before you buy it. Especially with large items you can save a lot of money.

4) Saving money on food

Always shop with a full stomach and always use a shopping list. Try to schedule a meatless day (without substituting meat for pricey fish) once or twice each week. Don’t waste food use everything you buy.

5) Catalogues

Catalogues are one of the most insidious forms of spending temptations. So, throw them away. Go to a discount store instead. Yes ladies, you should also throw away that Victoria secret catalogue or other expensive clothing-line catalogues. These are just a few of things you can do to start living frugal. So be frugal and start to put some saved money aside today! Maybe then you reach your long-term goal.

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