Living Frugally for Beginners

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The word “frugal” is thought of by many as a way to spend as little money as possible, which puts a bad taste in people’s mouths. They feel as though they can’t enjoy life. However, living frugally is more about being smarter with how you spend your money. Once you start putting your money where it counts and not wasting it on things that will make you temporarily happy, you won’t believe how much money you’ll save.

There are so many benefits to living frugally that will not only save you money but your sanity as well. You’ll start to become more aware of where your money is going and what value you’ll get from spending it. Keep in mind, this isn’t a “stop-spending-money” approach. It’s just a way to live simply, spend smarter, and enjoy your life more. For example, your version of frugal may look like spending money on family vacations instead of spending money going out to eat. That doesn’t mean you can’t spend money going out to eat; it just means you may be more cognizant of what is going to provide value in your life.

Whether you’re saving for a specific goal, like early retirement, or you just want to clean up unnecessary spending, frugal living is for you.

Here are some of my best tips for Living Frugally for Beginners:

Create a Budget for Living Frugally

If you don’t know how much you spend on certain things per month, how are you supposed to know what to keep and what to cut out? The first step to living frugally is coming up with a reasonable budget you can stick to that will help you become more aware of where your money is going.

Think Before You Act

Before you make a purchase, start practicing mindful purchasing tactics. Living frugally means placing value behind each purchase you make. If you don’t need another red

sweater, don’t buy another red sweater. Think about the result of each purchase and how it will add value to your life. You’ll end up saving a ton of money by practicing mindful purchasing practices.

Cook from Home

Did you know that the average American household spends about $3,000 a year dining out, according to the Bureau of Labor Statistics? That’s a whole lot of money that could’ve been saved for retirement, travel, or additional expenses. I’m not saying you can’t eat out ever. All I’m saying is to cut back and start getting familiar with the dusty old cookbook you got 20 years ago. Cooking from home will save you tons of money and you’re more likely to eat healthier than you would be going out to eat.

Love It or List It

eBay or Facebook Marketplace anyone? One of the easiest ways to earn a little extra income to put away is to sell anything you don’t need or use anymore. For example, I’ve seen tons of people listing their kids’ old bedroom furniture on Facebook Marketplace for $500! If you’re wanting to live frugally and save money, making some extra side income is the way to go!

Stop Buying Brand New

I know you want the brand new Toyota 4Runner, but do you need the new Toyota 4Runner? Probably not. Instead of buying a brand new vehicle, try to find one a couple of years older and you’ll find it’s way cheaper than buying brand new. A new car payment is a huge expense that’s not necessary if you’re trying to live frugally. Trust me, you’ll be much happier with a $250/month car payment than a $750/month car payment. That’s $500 you can save per month and put away!

Invest, Invest, Invest

Saving your money is great and all, but what about making your money grow? Did you know that investing your money is one of the best ways to build your assets (i.e. your wealth)? You don’t want to just put your money away and not touch it for years. Money that doesn’t grow won’t help you in the long run. When you’re living frugally, investing is key to making sure the money you’re saving by spending less isn’t going to waste. One day, you’ll be able to live off of your investments and not have to work at all if you don’t want to!

Get a Side Hustle

You’ve probably heard the term “side hustle” so much you’re sick of it. However, I have to bring it up again because it is so important to diversify your income streams. Relying on one source of income is like putting all your eggs in one basket. If your basket gets stolen, your eggs are gone. If you happen to lose your job one day, that income stream is gone and you’re left with nothing. However, if you have a lucrative side hustle that brings in some extra income, you have enough money to save and pay your bills while you find another job. Who knows, your side hustle may become your main hustle!

No matter where you are in your frugal living journey, these tips will help you spend a little less, save a little more, and live more simply.