There are several important reasons why you might want to live frugally. Financial difficulty is usually the main reason; after all, we are in a recession. Aside from that, you might choose to live frugally because you actually want to increase your wealth.
The money you save can actually be used to start a profitable business or start a profitable investment portfolio.
Now that you know a few of the reasons it pays to be frugal, let me show you some of the tactics you can use to start saving money. I am going to give you five main tactics you can use today, all saving tips can be found under these tactics I will share with you.
Get rid of the car – This is one of the most expensive if not the most expensive debt we have besides the debt incurred on our house. We not only have to buy gasoline to keep our vehicles running, we have to pay all sorts of taxes just to have it legally on the road, we have to pay car insurance and car tax not to mention car servicing and minor repairs that comes up every now and then. If you live in an area where there is no public transport or is not practical for you to get rid of your car; there are other alternatives. At the bare minimum, reduce the use of your car; you will save money on gasoline at least. You can also walk more, carpool, or even cycle wherever possible.
Get rid of the house- I am not saying sleep in the streets, and of course, not everyone can relocate easily or simply. If you live in a larger house, move to a smaller or go rent a house in a cheaper neighbourhood, if it is feasible for you to do so. You can save thousands in a year by living in a smaller house, especially if you get rid of a lot of clutter. In a smaller home, you are likely to use far less utilities to heat and cool it as well.
Eat out less- You can save a lot of money by cooking at home. Even if you can’t cook, you can save a lot of money by getting oven and microwaveable foods from your local supermarket. Watch for sales, bargains, and coupons.
Cut out Cable and Sky Services- This will force you to do things like read more and have conversations with your family frequently. Start a family game night! If you are a big sports fan or there is one programme you can’t do without. Swallow your pride and go watch that programme at a close friend or relative’s house. You will have lots of time to start that part time business and study more about wealth creation.
Stop Impulse buys- Do not buy anything you didn’t plan for. Keep yourself on track by writing down everything you want to buy before you go to the store.
