Living frugally, is that even important? Yes, because if we are not careful with our money, we will find enough ways to get rid of it. As long as we don’t consciously pay attention to our lifestyle and implement some saving tips, we will spend a lot of money unnecessarily!
A warning to us should be the many celebrities who regularly go bankrupt despite incredibly high earnings. It’s pretty easy to get your spending up pretty quickly when you’re on a high income if you’re not very careful.
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Living frugally means making conscious financial decisions every day. But how can you start with it? There is so much information on the net that sometimes you don’t even know what to do first.
Ok, I would say let’s start with the basics: figure out what your financial goals should be and plan your spending to be in line with your goals.
Do you want to retire earlier? Are you planning to buy a home? Do you want to go on a big vacation? Do you want to buy a better car? Set certain financial goals for yourself and think about how much money you will have to put aside each month to reach them.
Every time you spend money, consider whether your purchase decision makes reaching your goals more likely or less likely.
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Living frugally does not mean that you have to forego all good things. This is not about deprivation, but about setting priorities and only giving up the things in your life that are not important.
You can find ways to cut your expenses without sacrificing the quality of life, for example, by canceling a subscription that you are not using anyway, or by borrowing books from the library instead of buying them.
Living frugally also means no longer being jealous of other people and not comparing yourself to them. Once you learn to value your own possessions, you will feel less envious.
You will begin to understand that other people live under different circumstances.
Appearances can also be deceptive: just because someone drives an expensive car or wears branded clothes does not mean that they are actually doing well. He can have huge debts or be seriously ill, who knows?
Unless you know someone very well, you cannot really judge their circumstances. You may just be jealous of the outer shell, but you don’t know the inside is empty.
Instead, be aware of your own wealth and privileges!
Live frugally without being stingy
The terms thrift and avarice are often wrongly used synonymously because they do not mean the same thing.
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While stingy people only pay attention to the price, thrifty people think long-term and also take quality into account. So you would not be buying the cheapest product, but the one with the best value for money.
Example: My washing machine broke a few months ago. When I wanted to buy a new one, I researched beforehand which washing machines are the most robust and require the least repairs.
I then decided on a Bosch device. That was the second best option after Miele. I decided against a Miele because a total of 1000 dollars is too high a price for a washing machine for me. At Bosch I also get good quality, but at a reasonable price.
Living frugally: what are the benefits?
The benefits of a frugal lifestyle are numerous. Those who consciously live under their circumstances can …
- Reduce debt,
- Save reserves for emergencies (e.g. broken dishwasher, car repair, sudden job loss),
- make provisions for old age,
- quit his hated job and look for something better without running into financial difficulties,
- Money in continuing investing n, u m to increase its career opportunities and earning potential,
- invest in residential property,
- travel the world.
Save money and get rich: Over 45 tips for everyday life
Living frugally: Account and credits
- Switch banks if your account fees are too high.
- Check regularly that the withdrawals on your bank account are correct.
- Freeze your credit cards in a block of ice in the freezer and only use them in an emergency. If you carry a credit card in your wallet every day, you will be tempted to use it more often.
- Another, more radical option is to cut up all credit cards and close the associated bank accounts.
- Reduce your overdraft facility: If you have a tendency to constantly exhaust your overdraft facility, you could call your bank and ask to halve your overdraft facility or even cancel it entirely.
- Increase your monthly loan repayments to save interest.
- Reschedule your loans so you can get cheaper interest rates.
Living frugally: Contracts
- Cancel all subscriptions: Whether it’s the daily newspaper, gym or Netflix, cancel all subscriptions that are pure luxury.
You can also read the news on the Internet. Most of the news is fake news anyway, or it doesn’t affect your life at all. Since 2014, when I threw my TV in the trash, I’ve hardly followed the news and I’m still alive.
You can also do sports at home or outdoors. You can also watch films on YouTube.
- Whether for electricity, internet connection, smart phone or insurance: cancel all contracts and look around for cheaper alternatives at Check24.
- Or call the respective provider shortly before the contract expires and negotiate a better price.
- One simple rule you can stick to is to only buy the things you actually have the money for. You shouldn’t go into debt to buy any particular item. That way, you never have to pay interest either.
- Don’t buy things just because they’re on sale. Thrifty people know that not all specials are worthwhile. The question you should ask yourself is whether the item you are trying to buy is really worth the price. Do you even need him?
For example, don’t buy a bread maker if you’ve never really excelled in cooking and baking, even if the vending machine has been reduced from 100 to 50 dollars. The risk that he will just stand around without going to use n, i st quite large. Such a machine also takes up a lot of space.
- Don’t make impulse buying: If you’re not careful, impulse buying can ruin your finances.
To prevent spontaneous purchases, you can use the 21-day rule: If you see something that you want to buy, you have to wait a week before buying it. The 21 days should help you to decide whether you really need the item.
- Buy clothes only in the summer and winter sales.
- Do not buy any clothes that you cannot wash yourself and that have to be dry-cleaned.
- Only buy clothes that fit your current figure, not things that you have to lose weight for.
- Invest in classic, timeless clothing instead of trendy things that will soon be uncool again.
- When you know you will only wear an item of clothing once, borrow it or buy it used.
- Only buy fruits and vegetables in the appropriate season, where they are cheapest.
- Before you buy anything, check out Amazon and eBay to see if you can get it cheaper there.
Living frugally: Household
- Keep your apartment tidy, clean and cleared out so that you always have an overview of your possessions and do not accidentally buy something twice.
- Decorate your living space with cheap means
- At night, unplug the devices that you do not need, because electricity is consumed as long as the plug is in. Alternatively, you can also use a power strip that can be switched off.
- Research whether the cost of buying an internet modem yourself is cheaper in the long term than renting the modem from your DSL provider and paying a monthly fee for it.
- Renounce the use of the dryer, if you have the opportunity, d hang somewhere a freshly washed laundry.
- If your apartment is too big for you but you don’t want to move out, consider whether you could at least rent out a room in it temporarily (e.g. during trade fairs). Clarify this with your landlord.
- Only start the dishwasher when the machine is full.
- If your clothes develop small pods, simply shave them off with a lint remover.
- Try to fix your clothes instead of just throwing them away.
- Recycle old, discarded T-shirts as cleaning rags.
Live frugally: Eat
- Cook more portions, friendly n, a ls you need and freeze the excess eating or doing it in Tupper pots. If you have enough space and a large family, it is worth investing in a freezer.
- Don’t throw away food, instead pay attention to the best-before dates and use up your supplies before they expire. Especially helpful is if you get in advance a meal plan anfertigst for the whole week in which you, the food center l, d older life is about to expire, deliberately using.
- A tight food budget is another effective measure against food waste. Think about how much you normally spend on food per month and try to get by with 20 to 50 dollars less.
- Meat is one of the most expensive foods, so if you only eat meat once a week, you will find that you are spending less money.
- Forget Starbucks and just make their delicious coffee drinks yourself cheaply.
- Use your balcony or garden to plant your own food.
- Avoid restaurants, canteens, takeaways and snack machines and instead bring your own homemade lunch with you to school, university or work.
Living frugally: transportation
- If possible, walk to work or ride a bike.
- Do all of your errands in one day. This is how you save fuel costs.
- If you have an office job, ask your employer if you can work from home, at least on a daily basis.
Living frugally: health
- Take care of your dental health by brushing and flossing thoroughly and regularly. Dental treatments can be extremely expensive!
Living frugally: free time
- Stay at home or goes out and organizing with family and friends a game night with homemade snacks.
- Organize a bring-along party where each guest has to bring home- made food (e.g. salad, cake, etc.). Then you don’t have to invest so much time and money in cooking and still have a lot of fun.
- If you want to go out, take advantage of parks, open air festivals, museums and libraries in your area. In schools, universities, churches and associations, there are often free or at least very inexpensive performances, exhibitions and events.
- Avoid city strolls and shopping centers, because here you will only be tempted to spend money unnecessarily.
- If you go out with friends, take advantage of the happy hour and all-you-can-eat buffets in bars and restaurants.
- Stock up on gifts for your family and friends: Buy gifts well in advance at special prices when left over and in outlets.
- Just make gifts yourself!
- If you enjoy reading, a Kindle e-book reader is worth it. You can download thousands of books for free on Amazon and online. There are so many free books on my Kindle that I would probably need a second life to read them all.
If you’re still unsure of what to do with all the money you’ve saved, read this article.
I want to put you also to his heart, this post again goes through thoroughly and be available this notepad and pen and write down you which of these money-saving tips you going to actually implement in the near future. You can also print out the article and use a highlighter to mark all the tips that are relevant to you.
However, resist the temptation to read through 10 more blog posts on the same topic, but not actually use any of them in your life.