At its basic level, frugal living can be broken down into two parts. Knowing what these two parts are can help you make good decision toward your savings goals.
You can be frugal whether your finances require it or not. Some of the richest people live very frugally. Sometimes this is in order to pass down their riches to their children, sometimes it is to be able to give generously to others in need and sometimes it is just the way that they were built or raised.
The first part to living frugally is avoiding or having an aversion to spending money. For example, when you think you need or want something do you run right out to get it? If you have an aversion to spending money you might think twice about whether or not you can really live without it. Maybe you’ll come up with another solution that doesn’t require spending money.
Think about what your life would be like without the thing? Is it still possible to live and be happy? Medicine and food are necessities. The latest DVD is not. Shoes are a necessity but designer shoes are not. You have to find where your level is and then work on lowering it to as minimal as possible.
The second part of living frugally is to find ways to spend as little as possible on the things that you do need and want. One way to do this is by using saving strategies at the store, such as couponing, haggling, etc. Another way is buy buying things second hand or figuring out how to make them for less than they cost new. Cooking at home instead of eating out or shopping at yard sales for kids toys and clothing are just two examples of how you can spend less. Buying in bulk or bartering for good and services are two others.
Combine these two parts together and, if you are serious, you’ll spend less money.
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