Frugal living habits that will change your life for the better.
Ever wondered what habits frugal people have? What do they do on a daily and regular basis to save money? You came to the right place. 21 realistic frugal living habits that frugal people have which will change your life and help you to live frugally regardless of your income.
Poor spending habits can make us drown in debt. These frugal living habits calls us to develop positive money mindset.
Habits that frugal people have and they have used to save more money and most importantly they have broken from the debt cycle and they have accomplished or are set to attain their financial goals. Frugal living is simply being careful about your money. In other words, you avoid being wasteful and spending in an extravagant manner.
It doesn’t mean depriving yourself neither does it mean living below your means nor living cheaply it’s all about being smart and intentional with your money. The difference between being frugal and cheap is that frugal people think of long term while cheap people think of short term. Cheap is expensive in the long run. Yes, it’s possible to be frugal without being cheap.
I believe that the best way to learn about something is through people who have had success in that particular field. If leading a frugal lifestyle is something you want to do this year there is no better way to go about it than with these habits of highly frugal people. They will inspire and challenge you at the same time. Living frugal comes down to implementing certain daily habits that make it a routine.
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1. Frugal people have a financial plan in place
Having financial plans in place is very key for frugal people. It all starts by knowing how much money you have coming in and going out. They know what they are working towards. Financial plans will help you to prioritize your spending and in return achieve your financial goals.
Frugal people always have a saving account, retirement fund, and other small savings that are in place for safeguarding purposes. They have money set aside for small emergencies and moderate emergency funds for things like job loss. They are prepared for the unforeseeable future.
2. Frugal people always have a budget and follow it.
One of the best and most effective frugal living habits is making and sticking to a budget. A budget will help get your spending under control. Creating a budget might not be the most exciting thing to do but it’s very important for you to be aware of how much comes to your account and where every coin goes to.
Most people when they hear the word budgeting they get scared because they think it’s all about being cheap. Budgeting is simply evaluating your monthly income and coming up with a plan on how to spend your money wisely.
Once you create the budget, evaluate it and check the areas you might be overspending your income. Doing so will also help you to cut down unnecessary expenses that you didn’t even realize you had. It will also help you identify the areas you struggle most with your budget and you will be able to work on them. In most cases it’s not the biggest expenses that drain your budget it’s the little expenses.
Frugal people don’t spend more than they can afford neither do they depend on credit cards buying expensive things. They are very honest about their financial situation as they aren’t trying to compete or impress anyone. With the rise of technology and social media influencers being all over, some people are trying to keep up. In reality, the influencers are sometimes given those items by brands and companies to create awareness for them. Keeping up with the Joneses will make you broke and will lead you to a significant amount of debt. Simply because you might spend money you don’t have.
Do you know of the 50/30/20 rule? It’s where 50% of your budget goes toward needs, 30% of your budget goes toward wants, and 20% of your budget goes toward savings. It gives you a perfect guideline to help you become a frugal person.
3. Frugal people are always learning
Frugal people are always reading and looking for ways to improve themselves. They read books, websites, blogs watch YouTube videos and listen to podcasts to learn more ways to save money, make money and build wealth. This is something that everyone can do. You will also notice that they surround themselves and learn from like-minded people.
Dave Ramsey has amazing tips on saving money and becoming debt free. If you don’t know him, he is an outspoken financial guru who became a self-made millionaire at 26 but lost all of it and at 28 he filed for bankruptcy. What makes him an amazing teacher is that he teaches from experience on how he went from been broke to prosperous again.
He has authored several books and my favorite is Total Money Makeover. This book was a life changer for me. From his profound tips, I have been able to save more money this year than I ever imagined possible. His tips have helped millions of people from all over the world to improve their financial life.
Related post: 10 Easy Dave Ramsey tips for saving money and improving your financial situation.
4. Frugal living habits: Always buy used
Frugal people always buy used when they can. I am sure you must have heard the saying “one man’s trash is another man’s treasure” you can get a good bargain at second-hand stores. Just because something is old, doesn’t mean it’s not valuable. You can get good quality items from places like Craigslist, eBay, Poshmark and Facebook marketplace. Make sure before you buy something brand new, check if you can get it used first.
5. Frugal people repair before replacing
It goes without saying that repairing is way cheaper than replacing the whole item. Don’t wait for something to completely get worse for you to repair it, it might end up costing more money. Maintenance is key.
If something is broken and you can do the repairs yourself, fix it yourself. YouTube has so many tutorials on how to repair almost everything, whether it’s plumbing issues, painting a house or mowing the lawn. Whatever it is, you will get your answer. Make it your best friend.
It’s important to know your limitations, least you make something even worse. You may not be able to fix something yourself but chances are you already know someone who can fix it for a fraction of the cost of buying something new.
6. Frugal people buy in bulk
Buying non perishable in bulk is much cheaper and more convenient. It will not only save you money but also time. Always compare the prices by the unit before making any purchase because sometimes buying in bulk does not always mean that you are saving money.
7. Frugal people always have profitable side hustles
There are so many sides hustles you can start to make extra money. Passive income ideas will help you make more money and in return grow your savings.
My no 1 recommendation to anyone who wants to start a profitable side hustle is blogging. Blogging is the perfect side hustle for anyone who wants to make an extra $1000 online and from home. Starting a blog changed my life. Am a full-time blogger and I love it.
Blogging gives you the perfect opportunity to help others and it gives you so much freedom and flexibility. There are so many people making more than $1500 from their blogs and some have even made it a full-time career. Earning from blogging is limitless.
If you want to start a blog and start making money online, I highly recommend start your blog with Bluehost. I have been hosting my website with Bluehost for more than 3 year and I have never had any issues with them. Bluehost has 24/7 support, a money-back guarantee, and makes it super easy to start a blog. Starting a profitable blog has never been this easy. Check out my step by step guide on how to start a blog which makes everything so smooth for you.
To run a profitable blog, I highly recommend Blog by number course. This is a course by Suzi Whitford who is a stay home mom and a six-figure blogger and she shares her best tips. She was able to grow her blog from $0 to over $20,000 per month in just over a year. I have gone through the course and it’s amazing. Blog by number is a road map to blogging.
She delivers everything she promises. Hand down the best course I have taken and I can promise you it’s worth every penny. You will get the value for your money. She has taught over 5800 people on how to start a profitable blog and most of them are making more than $1000 per month.
For me Blog by Number Course gave me the perfect road map and helped me create a strong foundation. I love how she breaks down everything into small steps. Enrolling in Blog by Number course is the best decision I made as a new blogger. Learn all the about the course here.
Read more about my Blog by Number Course journey on this post The easiest way to start a profitable blog. Looking for a way to finally contribute toward family finances, blogging might be the answer for you.
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8. They shop through cashback programs
Frugal people always earn cashback on their everyday purchases. Wouldn’t you also love to earn cashback on your purchases? There are so many cashback programs and apps that make it possible for customers to earn free money on items they regularly buy. You earn cashback on almost everything from toiletries, clothing to kitchen staples.
Rakuten formerly known as Ebates is one of my favorite cashback programs. You get up to 40% cashback when you shop through Rakuten. There are over 2500 popular stores to choose from such as Macy’s, Target, Walmart, Amazon, and Kohls the best part is that not only do you earn free money but you get so many offers, free gift offers, flash sales, and amazing discounts.
Rakuten always has so many deals which means you will end up saving so much money from your shopping. They send your cashback rewards in the form of a “Big Fat Check” or money transferred to your PayPal account. Signing up to Rakuten is totally free and takes like a minute.
You just need to download the Rakuten Browser extension and every time you visit an E-Commerce site online that is eligible for cashback you will receive a notification.
Sign to Rakuten (Ebates) today and get a $10 bonus.
9. Use cash instead of credit cards.
Frugal people use cash which is so genius because when spending on a credit card it’s money you don’t really have. If your cash is out, then you don’t buy it. Many people have the notion that credit card is free money but it isn’t. This leads to so many accumulating debts because they used a credit card to purchase something they can’t really afford.
Using a credit card isn’t all bad but it calls for displine. If you have to use credit cards, do so intelligently. Why not spend some time educating yourself on how to improve your credit score?
10. Don’t have unused subscriptions
Do you have subscriptions that you pay for and never utilize them? It’s time to cut them out. It’s easy to forget about them especially if they are directly paid from your bank account. If you really can’t let the service go, try negotiating for a lower cost.
11. Frugal people are always alert
Frugal people are always alert meaning they always double-check for special offers, coupons, and discounts. Before making any payment they are aware if there is any sort of deals available. They never pay the full price for an item before looking for a discount. There so many apps that will alert you of a discount when you are shopping. The best one is Rakuten as mentioned above.
Frugal people plan and analyze every purchase, they don’t just go buying things on a whim. They plan their purchases in advance which allows them to hunt for the best deal available. They know when and where to buy.
12. Frugal people always review their grocery shopping habits.
Numerous studies show that most families spend way so much money on grocery bills. Food is one of the highest expenses for most households. Below are some ideas that will help you feed your family frugally and at the same time save money on your groceries.
- Avoid shopping when hungry
Have you ever gone shopping hungry and realized you ended up with a huge bill? I have. Hunger makes you think that you need to eat so much because everything looks so appealing. You end up stuffing your cart with things that weren’t on your shopping list and you don’t need it which means you aren’t sticking to your grocery budget. Before you go shopping next time, grab yourself a healthy snack to take away the hunger.
- Stick to your grocery list
Creating and sticking to your grocery list will help you save money because you will be staying within your budget. Before you go for grocery shopping, make sure you take an inventory of the things in your house to avoid re buying items that might go stale and things you didn’t intend to. The less time you spend in the grocery store the less time you have for overspending on impulse buys.
- Meal planning
This is one of my favorite frugal living habits. Meal planning goes such a big way and it’s perfect if you usually struggle with what to eat and cook. It helps you to be stress-free, save time, cut down your grocery bill. $5 meal plan is a budget-friendly service that makes meal planning possible. It enables you to get a fresh meal plan delivered straight to your inbox.
For $5 a month, they will send a meal plan where every meal will cost $2 per person and sometimes even less. No need to get stressed in the evenings trying to figure out what to make for dinner. It’s time to take the guesswork out. Super easy to follow recipes and you will also get a shopping list to help you organize your grocery trip.
Get a Free 14-Day trial by signing up for $5 Meal Plan today.
- Dine at home
Eating out is expensive. Spending about $20every day for lunch and dinner might not feel like a lot of money at the moment but with time it adds up. Invest in an instant pot, it will make cooking in bulk easier for you. It’s for those busy weeknights and for busy moms as well. You will have a ready delicious meal on the table in no time.
- Stop buying bottled water
We all need to drink water, but buying bottled water every time you go grocery shopping is not budget and environmental friendly. Frugal people always have a water bottle with them that they keep refilling with water. If your tap water isn’t ideal I recommend getting a water filter. This one is my favorite as it is super affordable and durable.
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13. They are no longer subscribed to stores and company newsletters and promotional emails
You will hardly see a frugal person who still has numerous subscriptions because retail stores do a great job of sending deals and discount alerts to entice people back to their site and shop. It might sound so petty but believe me unsubscribing from the newsletters and promotions will help you avoid impulse buys.
14. Purchase generic items
It’s time to stop trying to keep up with the Joneses. Frugal people always make sure they are getting the value for each dollar they spend. Sometimes we end up buying some things because we are loyal to the brand. The reality is that we can get alternative items for a cheaper price which are equally good. Purchasing generic items will help you save money which you can put to better use somewhere else.
15. Frugal living habits: Make use of Airbnb
One of the most admirable habits of frugal people is that they prefer to stay on rentals instead of expensive hotels. Airbnb is one of the best sites where you can get cost-effective accommodation when on vacation. You can get anything you are looking for, whether it’s a full house or just a room.
The best part about using Airbnb, it gives you a more authentic vacation experience because you get to interact with the locals who share their best tips and helps you to familiarize yourself with the area.
If you have extra space in your home you can put it into good use by renting it out on Airbnb as well.
16. Reselling items.
Frugal people always sell the items they no longer need on sites like depop, eBay, Craiglist, and poshmark. As long as the item is in good condition you will get someone to buy it.
Frugal living habits that will make working towards your financial goals super easy and stress-free. It’s important to note that some things will work for you while others won’t. It is not one method fits all. Frugal people keep trying, they keep moving even when something doesn’t work out.
I hope that these frugal living habits will prompt you to be more conscious of your spending. More intentional with your money.
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