5 Habits of Highly Frugal People

Today I want to talk to you about the five essential habits of frugal people. When you decide to live a frugal lifestyle, these five habits are what I like to call your first steps to living frugally. No matter what your cheap life looks like and what strategies you decide to implement, you will always have a budget, Prioritize your spending, be mindful of the best deals and store sales, learn to avoid impulse buys, and save and invest.

So, let’s start with the habit one.

Budget

Setting and sticking to a budget: Highly frugal people understand the importance of setting and sticking to a budget. They know budgeting is critical to controlling their finances and ensuring they have enough money for the things that are truly important to them.

One tip for setting and sticking to a budget is to track your spending for at least one month. This will give you a good understanding of where your money is going, and you can adjust your budget accordingly. Another tip is to automate your savings so a certain percentage of your income is set aside each month before you even see it.

Another tip for setting and sticking to a budget is to use budgeting apps or software to help you keep track of your spending and income.

Another one is to create a zero-based budget, which means that every dollar you earn is allocated to a specific category, so you know where your money is going and have no money left over.

Another tip is clearly understanding your financial goals and ensuring your budget aligns with them.

Another tip is to review and adjust your budget regularly to ensure it aligns with your current income and expenses.

Another tip is to have an emergency fund of at least 3-6 months of expenses in case of unexpected events.

Habit two.

Prioritizing spending

Prioritizing spending: Highly frugal people are mindful of spending and prioritize where their money goes. They understand that cutting back on unnecessary expenses can free up more money for their savings and other financial goals.

One tip for prioritizing spending is to list your non-negotiables, such as housing, food, and transportation, and make sure you allocate enough money for those expenses before anything else. Another tip is to set a savings goal and make sure you are consistently putting money towards that goal before you spend money on non-essential items.

Another tip for prioritizing spending is to look for ways to reduce expenses, such as negotiating bills, cutting cable, or switching to a cheaper cell phone plan.

You can use cash envelopes for certain expenses, such as groceries or entertainment, and only spend what is in the envelope.

Another tip is to clearly understand your values and make sure your spending aligns with them.

Another tip is to consider the cost of ownership when making a purchase, such as maintenance and repairs, to ensure it is worth the investment.

Another tip is clearly understanding your long-term financial goals and ensuring your spending aligns with them.

Habit three.

Being mindful of sales and deals:

Highly frugal people are always looking for sales and deals. They know that by taking advantage of discounts, they can save significant money on the things they need.

One tip for being mindful of sales and deals is to sign up for email newsletters from your favorite retailers. This will give you access to exclusive deals and sales unavailable to the general public. Another tip is to use cashback apps or loyalty programs to get money back on purchases you would make anyway.

Another tip for being mindful of sales and deals is to compare prices online before making a purchase in-store.

Another tip is to use price-tracking tools, such as Honey or CamelCamelCamel, to be alerted when the price of an item drops.

Another tip is to buy in bulk, when possible, to save money on items you use regularly.

Another tip is to shop during off-peak hours to avoid crowds and possibly score additional discounts.

Another tip is to shop at thrift stores, garage sales, and consignment shops to find great deals on gently used items.

Habit four.

Avoiding impulse purchases:

Highly frugal people are experts at avoiding impulse purchases. They understand that these purchases can quickly add up and eat into their budget. Instead, they take the time to think through their purchases and only buy what they truly need.

One tip for avoiding impulse purchases is to give yourself a cooling-off period before making a purchase. If you see something you want, wait at least 24 hours before buying it to see if you still want it as much. Another tip is to create a list of things you need before going to a store and stick to it. (having a list is a lifesaver for me).

Another tip for avoiding impulse purchases is to list things you want but don’t need and put them somewhere where you can see them regularly.

Another tip is to unsubscribe from marketing emails to avoid being tempted by deals and sales.

Another tip is to ask yourself if you need the item or if it can be borrowed or rented.

Another tip is to use cash instead of credit or debit cards to help you stay within your budget. I don’t use cash; I use my credit cards because I know how to make my credit cards work for me. However, you can use cash if it works for you.

Another tip is clearly understanding your values and ensuring your purchases align with them.

Habit five.

Saving and investing:

Highly frugal people know the importance of saving and investing for their future. They prioritize putting money away for a rainy day (or in case of an emergency), and they understand the value of investing for long-term growth.

One tip for saving and investing is to set up automatic transfers from your checking account to a savings or investment account. This will make it easy to save without thinking about it. Another tip is to invest in low-cost index funds to get broad market exposure without paying high fees.

Another tip for saving and investing is to start small and increase your savings over time.

Clearly understand your risk tolerance and invest in a way that aligns with that.

Diversify your investments to minimize risk.

Invest in low-cost index funds to get broad market exposure without high fees.

Seek professional advice or guidance if unsure where to start with saving or investing.

In conclusion, highly frugal people are budget-conscious, prioritize their spending, take advantage of sales and deals, avoid impulse purchases, and prioritize saving and investing. By incorporating these habits into their daily lives, they can live below their means and achieve their financial goals.

Well, that’s all I have for today, I hope this helps you on your journey.

Thank you for reading Everything Frugal.

Leave a comment