Basic Rules of Living Frugally

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Series on money

When it comes to living frugally, it doesn’t have to be rocket science. But we sometimes make it harder than it has to be. Keep reading to learn the basic rules to allow you to live frugally without the complications.

  1. Want vs Need – One of the key reasons people spend money they don’t need to is they get things they want instead of just what they need. Learn the difference and you will spend a lot less than if you don’t.
  2. Don’t Take on Debt – Steering clear from credit card and similar types of consumer debt is a huge step in the right direction if your goal is to live frugally. The interest you pay on credit card balances will take away money each month from other items you might really need, causing you to overspend.
  3. Quality Wins – Being frugal doesn’t always mean buying the cheapest version of something you need. In many cases it is more frugal to spend a little more to get a better quality item that will last longer. If you buy the cheapest it may not last long at all and you end up replacing sooner than you had hoped.
  4. Money Knowledge – Don’t forget the basics of just knowing how much money you have coming in each month and where that money goes. You don’t need a complicated budget to help you understand. Just keep track in a notebook or a simple spreadsheet of incoming and outgoing money each month. You’d be surprised how much money you spend on certain things that you can easily reduce or remove all together.
  5. Cut Back and Then Again – For many it is a goal to just live within your means, which simply stated means you don’t spend more than you make each month. But the truly frugal person lives BELOW their means. They are able to save each month, if even a little bit, instead of spending everything they earn each month.