Frugal lifestyle is getting popular recently amidst the lavish lifestyle shown by many celebrities. As the name suggests, this lifestyle refers to a frugal, sensible lifestyle to help achieve financial goals in the future.
The concept is being aware of expenses and conscious spending, as well as focus on priorities. It is suitable for you who are tired of urban lifestyles that tend to be consumptive.
What is Frugal Living?
In general, frugal living is a tendency to use money only for really important things. People who live frugally will only spend their money for primary needs and limit their expenses as little as possible.
Frugal people will take a lot of time before buying an item. Therefore, it is no surprise that these people are called frugal. However, what they do is reasonable.
For frugal people, mandatory expenses are the most important, such as the ones for food, monthly needs, and instalments. Apart from these costs, they will spend as little amount of money as possible.
They do this to achieve their goals, for example, buying a house. Even though this lifestyle was criticized and mocked in the beginning, in fact, frugal living is effective to avoid overspending that can lead to financial problems.
Tips to Apply a Frugal Lifestyle
As more and more people show how they manage to reach their financial goals by applying a frugal lifestyle, more and more people are interested in living it.
Here are some tips that you can follow if you are interested in living a frugal lifestyle.
Record All Expenses
Budgeting and recording all expenses are crucial when it comes to frugal living. No expenses should be missed to be recorded, even the smallest ones. By doing this, you will be able to know how much money you spend every month. By budgeting, you also won’t be impulsive in spending your money.
Prioritize the Most Important Costs
Prioritize primary needs and important costs, such as the electricity cost, water cost, internet cost, and other primary things that you really need. If you already pay for the primary costs, then you can use the rest of your money for other things, such as investment.
Look for Discounts and Second-Hand Items
If you want to live a frugal living lifestyle, you must not look down on discounts and other special offers. Because this is how you can save money. But make sure the items on discounts are still in good quality.
Frugal people also prefer to buy used items instead of buying brand-new ones. Especially if the stuff is still in a good condition and can function well.
That is all about what a frugal lifestyle is.
