5 Hot Tips On How To Become More Frugal

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Being frugal does not mean you are stingy with your money. It means that you have better money management. You are keen on saving since your spending is based on a strategic budget. If you are thinking of being frugal but do not know where to start, below are a few hot pointers.

1. Stop Wasting Your Money

If you are meticulous about your finances then you should have a budget. Most people do have some strategy on how they spend their money, but often do so on things they rarely or never use. For instance, an individual may be paying £80 a month for a gym membership and yet never goes to the gym. Conversely, some families will spend more than $500 per month going out to eat rather can cook their meals at home. Or it could be that you are spending over £400 a month on groceries and then dining out and spending £100 more. Such expenditures are a waste of money.

2. Prioritise Your Financial Goals

As you relook your spending habits, do so while focusing on primary financial objectives. Avoid spending your money on things that are less important to you. Give top preference to the most essential things, such as your children or family or even your education. Let your financial decisions reflect this.

3. Be Friends With Frugal People

If being frugal is still something you are trying to learn, then you may benefit from having a few friends that are frugal. That does not mean that you do away with your current buddies. The idea is to have a few fellows that can advise you on better spending so that you can save money. They are the kind of people that are happy to share with you their frugal ideas on things such as buying groceries in bulk or Groupon deals. You call them over for a party at your place and ask them to bring their own appetizers. 

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4. Consider Long-Term Costs

Would you prefer buying something and having to pay for it over an extend period yet you are living paycheck to paycheck, or being able to afford it and pay for it all at once? A frugal person will be quick to look at expenditures based on their long-term costs.

You spend about £50 a month on your iPhone since the cost is within your budget. But would you be willing to cough up £1200 to pay for the same, all at once? You may be spending around £100 on your cable TV, which seems like a fair deal. However, would you still want to pay for the cable TV if you are required to pay £1200 upfront?

5. Avoid Last-Minute Planning

Have the habit of planning for things in advance and you will find that being frugal is not that hard. For instance, you can plan in advance and go grocery shopping with coupons. You do the same and manage or make your office lunch at home. Similarly, you do not need to wait until your kid’s birthday is but a day away for you to buy a gift. Those last-minute decisions and rushed efforts tend to cost you more money. So, consider doing your Christmas shopping on Black Friday month as opposed to waiting until December 23rd or 24th to go shopping.

As you can see, being frugal does not imply never spending money. It advocates for wiser spending. For more information on family finances and how to manage your money visit Family Money. Hopefully, the five tips given above will see you make better decisions about your finances and see you save each month.

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