When it comes to personal finance, a lot of people tend to think that it is complicated and needs a lot of explaining before being understood but the truth is, personal finance is actually simple as long as you know what to do.
These frugal tips are tested and proven strategies that work, no matter what your situation is.
Frugality has always been a necessity, and it still is today for many people, especially with our current economic condition. It’s all about being wise when making decisions on how to spend our money and most importantly how to save it.
Here’s a list of frugal personal finance tips that will help you during the present economical situation. Incorporating these frugal living tips into your daily life will help you to save money and live on less, all the while helping you to improve your personal finances.
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Plan Your Shopping
Before going out shopping or buying groceries at the market, do an inventory check first if you have enough food supplies already or if you need more. Make a list of what you need and plan to buy. This massively helps prevent impulse shopping and impulse buying. Stick to your list! If you take anyone shopping with you, whether it’s your spouse or your kids, make sure they understand that you’re only purchasing what’s on your shopping list.
Live Within Your Means
Living with your means is not the same thing for everyone. It means that you live within your income, what you can afford based on the money you get or have. If you have $6000 a month coming in, you can live differently than if you have $1000 a month coming in. Don’t put yourself into a financial mess by trying to live in such a way that your finances will suffer heavily.
While some people can afford to buy what they like, it doesn’t mean that you can, or that you should. Search for reasonably priced items that are within your income limits instead of buying expensive brands or things that are not with your budget. You may also ask your friends and relatives if they have any recommendations to give or if they can hook you up with a good deal.
To stay within a budget, one has to think outside the box and seek alternatives. For instance, if you want to create a new look in your room but don’t have enough funds for the renovation, why not search the web for some decoration ideas that are free or at least very affordable? Other examples include getting hand-me-downs from family and friends which you can still use if they’re still in good condition.
Fix Up Old Things
Instead of tossing something out and spending money (or going into debt) for something new, try fixing or repairing the item. Obviously not everything can be fixed or repaired, but a lot of things can be. You can also often buy replacement parts for this or that, saving a ton of money when you don’t buy the entire item.
If you need something, such as a chest for clothes, you can save a lot of money often when you buy one that doesn’t good so good but is sound. Sand it, paint it, and you’ve got yourself a chest that looks brand new, for a fraction of the cost!
Cook at Home Instead of Eating Out
Let’s be honest. Eating out is nice. It’s great not having to plan a meal, having to cook, having to clean up afterwards. In short, it’s great letting someone else do the work every once in a while. But the problem is, it costs money, and often a lot of money, per eating out trip.
Eat at home. Save money. Save the eating out trips for special occasions – birthdays, weddings, celebrating something like graduation, etc.
Eating at home will save you a load of money. If you have able bodied people in the home who are able to cook and/or clean, assign everyone a day or days that it will be their job to cook and/or wash up afterwards. This takes some of the load off of you.
You can also try preparing dishes that can last for more than a week so that you won’t have to spend much time cooking every day. When you cook a dish, cook more than you need for the meal, then freeze part of it for later.
If you don’t know how to cook, learning how to cook your own food will not only benefit you in the long run, but it is also healthier since you know what’s on your plate!
Make Your Own Gifts
At Christmas or for birthdays, it can be pretty time consuming and expensive to go out and buy something for everyone. Save money by making your own gifts. If you have the skills in making things with your personal touch, why not make some homemade gifts? Handmade gifts are all the rage, and people love getting a personalized gift. Plus you save a load of money.
Handmade gift ideas: If you have a Cricut or Silhouette, you can make all sorts of craft items using SVG cut files – such as tumblers, tote bags, T-shirts, wall art, ornaments, and so much more.
Make a Budget and Stick to it
Take the time to plan a budget. A budget will help you see where your money is going and will help you keep on track with your spending.
First. write down everything you spend money on. Everything. Then decide what you must pay, such as housing, food, vehicle, insurance, etc.
Next, figure out how much you can and want to save each pay period. A savings is important.
Last, put the *wants* or luxury spending, such as more than one cell phone in the family, cable, etc.
Once you have your budget plan made and set, stick to it. If you’re not used to living on a budget plan, it might take a bit to get accustomed to a new way, but it will become normal soon enough.
Make do With the Things You Have
To avoid spending, make use of what you have at home first before getting anything new. Find ways on how you can reuse things for another purpose instead of just throwing them away. Anything that’s still in good condition can often be used for something.
It might be hard especially if the current circumstances won’t allow you to get everything that you want and need. But if you think about it, making do with what you have is a lot better than having nothing.
Change Your Mindset
Don’t set your goals so high that you have to go into debt to get what you want when you don’t really need it or when something lesser will work just as well. Setting your goals too high, beyond your income, is only setting yourself up for disappointment.
There’s nothing wrong in having lofty goals, but have a backup plan that’s less expensive so that you can still get what you need, even if it’s not exactly what you wanted.
Instead of having only one thing in mind, set different things that you want to achieve and try working your way towards each of them. Stagger them by price and how expensive each is.
For example, you need a new house. First decide what you need based on bedrooms, square footage, etc. Then look for homes that fit what you need but various prices. This way, you will have options and can make better choices based on your personal finances.
Opt for a Debit Card and Low Interest Credit Cards
In today’s world, it’s virtually impossible to not have at least a debit card. Your bank should offer you a debit card to use with your banking account. Debit cards have no interest or note to pay, since you are using your current available funds when using the debit card. A debit card is the better overall than using a credit card.
If you feel the need to have and use credit cards, opt for low interest credit cards. Your bank might offer a credit card deal with a much lower interest rate than a national credit card company.
If you currently have a high interest credit card, work on paying it off and then cancel it. If you pay more than the minimum due amount, you’ll pay it off quicker and save lots of money on credit card interest fees.
Also, the better your credit score is, the better chances you have at obtaining a low interest rate credit card.
Save Some Money
Depending on your personal finances, you can start by saving a lot per pay period, or you can save up on some cash or coins when possible. Saving money is a must do so that you have money for emergencies.
Things happen unexpectedly in life, such as when your car suddenly breaks down along the road or when you get a sudden tooth ache that needs attention from a dentist.
By saving money, you won’t have to borrow money from anyone or suffer when the unexpected happens.
Cheapest isn’t the Always Best Choice
While frugal living and budgeting is about saving money, know that cheapest isn’t always the best choice. When you need to make a purchase, let your own personal finance situation determine what you buy and how much you spend.
If your toaster dies and you need a now toaster, you can always get one for $10 to $40 and get a decent toaster. It’s a small amount of money and most toasters are pretty much the same overall when it comes to how long they last these days.
But all things are not created equally. Some things, such as a toaster, you pretty much know when you buy one how long you can expect it to last, for the money you pay for it. But some things, you get what you pay for, as the saying goes.
For example, if you buy cheap shoes, usually they won’t last long. They wear out faster, they fall apart, and they surely aren’t comfortable for wearing. If you buy good shoes, they can last for years. Yes, you will pay more. But overall, it’s a much better deal to spend say $100 for a pair of shoes that will last 10 years ($10 a year) instead of spending $10 on a pair of shoes that last four months, and keep buying those over and over ($30 a year).
Before buying cheap, depending on what you’re buying, consider the cost of cheap verses expensive and how long each will last to see which is truly the better deal.
These frugal personal finance tips can help you out so use them wisely.
This article has given you some handy frugal personal finance advice and frugal tips that you can try out. Take advantage of this personal finances advice and money saving advice from an experienced financial consultant, especially when times get rough.
These suggestions are helpful for anyone wanting to improve their personal finance life. Use these tips wisely and save money, and things will start to get better with all the effort being put in so keep it up!
Hopefully these personal finance tips have given you an insight on how to gain better control of your finances. Remember, financial dilemmas can be resolved as long as the right things are done.
Wrapping it up
The Frugal Simplicity blog is filled with articles on personal finance and frugal living tips. From getting out of debt to saving money, you can find frugal personal finance advice that will help you save your hard earned cash.
Take advantage of our frugal magazine blog updates and check back for new posts on how you can save money and live on less, find great deals, better budgeting tips, and more.