Frugal folks are subjected to a lot of public dissension. Many people believe penny pinchers are boring tightwads, almost Scrooge-like. However, that notion is the furthest thing from the truth. The truth is that frugal folks not only know how to have fun, but they can do it without overspending in the process. Penny-wise people know how to live rich because they have figured out how to spend smarter than the average person has.
1. Cut out the frivolities
Many budgets contain frivolities, and yours is likely no exception. It could be your morning cup of restaurant coffee, a daily lunching out habit, a happy hour indulgence or even a snacking fetish fed by the office vending machine. Whatever it is, recognize what your frivolities are and then cut them out.
2. Recognize frivolities you “think” are necessities
Next, begin looking at the things you believe to be necessary in your life that probably are not. Think about your cable bills, overpriced gym memberships, entertainment expenses and clothing allowances that might be just a pinch too high. Start cutting these expenses. After a while, you will find that you do not miss the things you once thought you have to have and you will start enjoying the left over cash you have in your wallet.
3. Prioritize
You might be an individual who looks at people taking expensive vacations or who have nice things and experience a twinge of jealousy. However, there is nothing stopping you from doing the same, providing you stop spending frivolously and begin saving and investing your money wisely. Frugal people live rich on less because they are smart about how they handle their pre-tax and after tax dollars. Prioritize your money, read blogs devoted to frugal living and start living rich by learning tricks to spending less.
4. Re-prioritize
Figure out what you want and set savings goals for those things.
If you want a new car, figure out how much you need and how long it will take you to save for it. Look at interest charges as the enemy. Interest is nothing more than a fee you have to pay in order to use your own money. When you do this, you find financing is no longer an option, and you learn how to make your money work for you.
5. Monetize your life
Everyone has to spend money. Whether it is an expense related to putting food in your belly or clothes on your back. However, savvy buyers know how to monetize this aspect of their lives. For example, use a cashback rewards credit card for your cash back rewards card to earn money off what you are spending. The pennies you earn from each transaction add up quickly, turning into dollars. The more ways you discover to earn money through spending smart or even by investing in a business or stocks, the more you monetize your life, and the better off you are.
Frugal folks live rich, and live better and live without debt because they changed their attitudes about money. If you want to start living well through spending (and saving), change your money attitude and you will watch everything else fall into place.