5 Ways to Live Frugally

By: kjmena

Part of being able to reduce your debt or even stay out of debt is being able to make the best of your income. Living within your means is necessary if you want to be able to stretch your money as far and efficiently as possible.

This doesn’t mean sacrificing your needs or limiting yourself and your lifestyle, it just means being more responsible with how you are spending your money and the best way to spend so that you can save money at the same time.

1. Living Within Your Means

This might be obvious to most of you, but it’s one of the main reasons that people fall into debt. Many Americans use credit as a way to live outside the means that their income affords them. They use credit cards to supplement their income in a very bad way. Instead, of trying to use the income they have for expenses, people rely on their cards.

Living within your means, means you should only be spending the money from your income. By staying within the budget of your paychecks you will get better at making smart spending decisions and managing your expenses.

2. Cut Out Unnecessary Expenses

Do you really need every cable channel available? Probably not. Getting rid of all your luxuries is a sure way to save money. An average American pays $123 a month for cable, that’s $1,476 a year on cable!

Getting rid of luxury expenses is a sure fire way to get you saving money and out of debt. You will quickly learn that you can live without these things and learn to substitute your time with other activities or services.

Recognizing your needs and your wants is important when trying to live frugally. Being able to know the difference between the two will be vital for saving money.

3. Cut Back On Your Spending Habits

Being able to control your shopping habits can serve as an easy and simple way to save money. Instead of walking into a store to buy 10 items, try to narrow down the list to just a few necessities, the vital items you need. By only buying the few items that you need, you will begin to gain healthy spending habits and become more aware of small changes that could end up saving you a lot of money.

4. Look For Deals

Getting a good deal on something is one of the most rewarding feelings there is especially if you get a really good one too. You can end up with huge savings by buying items on sales. Not to mention you will get deals on the items you need and some of the ones you want as well.

This is also a great opportunity to buy in bulk, you will get more items for your money’s worth. Also your purchases will last you longer which will have you spending less and not having to shop as often. This is basically a win-win-win situation!

5. Downsize

Getting rid of some your prized possessions can be difficult but also relieving in a way. You might have to make some emotionally charged decisions but in the end you will live more economically. Selling some of these extravagant items will leave you with more capital to put towards your savings or reducing any of your debt.

Good items to sell are a fancy grill or gel nail kit that are luxury items that you don’t need and can do away with. Even downsizing from a gas guzzling SUV to a more gas efficient car like a Honda, could save you thousands of dollars. This is not about forcing you to give away all your items but more or you to realize that there are inexpensive options that are actually better on your wallet and lifestyle.

Falling into debt is very easy but hard to get out of; by limiting yourself you will reduce your debt and improve your budgeting skills.