Do you know how to live below your means? Most financial experts will tell you one thing and that is living below your means is one of the best ways to build wealth.
You’d be surprised to find out that this holds true. It doesn’t matter how much money you make, if you don’t have good financial habits, you won’t reach your financial goals.
In this article, we will dig into 12 frugal living tips to help you tackle your spending and live below your means.
Without sacrificing the quality of life.
How to Live Below Your Means – 12 Frugal Living Tips
Do you know how to live below your means?
The truth is, most people don’t realize that they overspend on material things, and then feel miserable and anxious about their purchases.
But if you live below your means, you will find that you feel happy and secure.
The reason why is because they know that whatever they buy, they have thought about it multiple times. As a result, they don’t live with regrets.
If you want to figure out how to get rich slowly, below are 12 frugal living tips that will help you reach your financial goals.
1. Go with a Cheaper and Smaller Car
If your plan is to save a lot on gas, buy a smaller car. You will save thousands by choosing a cheaper car.
Plus, always make sure that before you buy a car, save as much money as you can.
Another trick is to stick to just one car. Unless you really need two, one car alone is more than enough to manage a family.
2. Buy a Smaller House
Just because you can afford a bigger house, it does not mean you should buy one.
You’d be surprised to find out some rich people still prefer to live in a smaller, modest house simply because they don’t see the benefit of having a grand mansion. Find a house that will be enough for you and your family.
Buy a smaller house but don’t risk your comfortability just to save money.
“Living below your means” means you honor what you need, and not what you want.
3. Cut Your Budget on Eating Out
One of the biggest expenses that most people don’t realize they make is by eating out.
This habit can secretly and quickly dry your wallet if you don’t keep track of your expenses.
Create a weekly menu and then only buy groceries that make up your weekly menu.
4. Create a Reserve Fund
Start a reserve fund to pay any expected but irregular expenses.
Such as holiday expenditures, a new pair of winter boots, or annual insurance premiums.
5. Pay Off Your Credit Card Balance
Yes, pay off your credit card balance every single month. Don’t miss it.
Set aside or even better if you could automate the payment. And when you can, pay extra and use less.
6. Stop Competing
The worst financial enemy is the act of competing with people around you.
Do not fall victim to this competing mentality. If your friends or neighbors buy things, congratulate them.
Be happy for them. But you don’t need to take out a personal loan just to get a new couch or to pay for a vacation.
7. Stop Buying New Clothes
Start adopting a simpler style. There’s a new fashion movement where people opt for a minimalist wardrobe.
You don’t need to be glamorous just because people are doing it.
At the end of the day, the number in your bank account matters more than the number of clothes you have in your wardrobe.
8. Declutter and Sell Unused Stuff
If you find yourself with a lot of unnecessary stuff around the home, maybe it’s time to declutter and sell them on eBay.
You’d be surprised to see what people will buy. Hold a garage sale or just sell them online.
9. Cut Your Drinking
Even if you’re drinking one beer per day or a few beers every weekend, it will soon add up without you even realizing it.
You will save tons if you can cut your drinking, and stop going to every party.
Truth is, you don’t need to hang out with your friends every weekend.
You’ll survive, trust us.
10. Become More of a Homebody
For extroverts, staying home might sound like torture.
But it can actually be a lot of fun.
Staying home will not only save you a lot of money but it’s better for mental and emotional health.
Read books, watch movies, or play board games. Learn to find peace internally instead of seeking it outside by shopping, eating out, or spending recklessly.
Here are some books I recommend:
11. Increase Your Income
There are so many ways how you can boost your income. You can start part-time jobs, or create a small business.
Turn your hobby into money-making endeavors or sell stuff for that extra cash.
Where there is a will, there is always a way. Here is a huge list of ways to make more money ideas!
12. Have a Frugal Christmas
Surprisingly, Christmas is expensive. It’s probably one of the most expensive annual holidays in the world.
Especially in America, people would go crazy on shopping just to make sure they have gifts ready for their loved ones.
But if you go to different parts of the world, you’d be surprised to know that some people celebrate Christmas without gift-giving.
It’s because they value Christmas more as family and friend’s time instead of a day where they spend hundreds or thousands of dollars.
Create a tradition instead of just giving gifts. If you have kids, they will always remember the environment and traditions, not the gifts.
How to Live Below Your Means – Conclusion
I hope these frugal living tips for living below your means inspire you to take control of your spending. Please pin this article and share on Facebook =)