Whether you're trying to pay off debt or save money for a brighter future, there are several circumstances that can induce you to change your existing spending habits. Usually, people view frugal living in a negative light. In fact, the term frugal living has become synonymous with the words like "discipline", "sacrifice" and "surrender". However, this is a wrong conception. Read along to get acquainted with 10 frugal spending habits that may help you become wealthy.
10 Frugal spending habits to build long-lasting wealth
Frivolous spending on the luxury or unnecessary items can create a big hole in your wallet. On the other hand, frugal spending habits can help you achieve financial success and avoid debt at the same time. Here are the 10 frugal spending habits you should embrace with a smile on your face.
1. Change your eating style: You would perhaps save a lot of money by giving up on restaurant dining, but this would not make you happy. Instead of skipping restaurant meals completely, you can just change your eating style. Watch out for the good deals. Some restaurants offer discounts if you have meals during off hours. So, you can try having your favorite meals during that time. Look at the menu carefully and find out if an appetizer can be turned into an entree. If you see that an appetizer and entree is almost similar, then try having the appetizer since it comes at a cheaper price.
2. Stay healthy to be a wealthy: Your health does play a major role in determining how much money you save and spend. Try to stay healthy and fit. Those who drink alcohol and smoke regularly, have bad eating habits. Most of them are overweight and have to spend more money than others. If you're physically fit, then you'd want to stay in good shape throughout your life. You'd skip alcohol, cigarettes, junk foods and avoid wasting money. You would walk or run several miles everyday. This would help you to remain busy with activities that hardly cost a lot of money.
3. Take time to create your shopping list: Never buy something from a store that catches your attention, but it is not there in your shopping list. You need to think about all the purchases for at least one day. Create a shopping list and review it. Scan the list and find out if you really need all the items. If you aren't sure about an item, then strike it out immediately.
4. Accept the "no spend day" challenge: It may seem outrageous to pass a day without spending a dime. You may think that it is simply impossible. How can you spend a day without having a cup of coffee from your nearest cafe? Well, you can choose Sunday as the "no spend day" since you won't probably have to go to work.
The best part of "no spend" day is that you'll get psychological control over your spending habits. You'll see that there are lots of expenses which aren't necessary. Most importantly, at the end of the day, you'd be a happy man since a lot of money has been saved in your bank account.
5. Learn to use coupons at grocery store: A good way to save money is to not pay full price for any item. You can do this by using coupons at the grocery store. Even when you're buying something online, try using coupon codes. You'd get the same item at a less price.
6. Live in a modest house and avoid debt: A bigger house would perhaps mean a bigger loan amount. This means bigger chance of making a default. You can save yourself from this ordeal by living in a modest house. There's is no point in overspending on a house and accrue a huge amount of debt. If Warren Buffet can live in a modest house then why can't you?
7. Boost your income and waste less money: It isn't necessary to take up a part-time job when you're living a frugal life. However, a second job can help you generate enough cash to contribute more towards your retirement savings accounts. Besides, it would help to increase your purchasing power.
8. Track your money and build budget: Several people simply don't have any idea about how much money they keep in their wallets. Some don't have any clue about their bank balance. This is almost like committing a sin since they fail to create a good budget. Just think how can a person create a good budget without having any idea about his income? It is like leading a financial life without having any direction.
9. Analyze the benefits and drawbacks: Always think before you act. This means analyze the benefits and drawbacks before making a financial move. Don't make hasty decisions and lament later. Hasty decisions often prove to be expensive and can lead you to financial troubles.
Ask yourself why you want to make a money move. If you want to invest your money, then think how would you benefit from it. If you don't have any valid answer, then don't make that move.
10. Withdraw $100 every week: Remember, you used to get daily or weekly allowance from your parents during your school days? You did manage to survive during those days. Right? Develop the habit of living on a set amount every week. For instance, withdraw $100 from your bank account and consider it as your weekly allowance. Try to spend the entire week with that amount. If you really can't, then stretch your weekly allowance a little bit. This would assist you to develop good spending habit and save money for the rainy days.
Never ever think that frugal living would ruin your happiness. You've to sacrifice everything you love. It just implies that you need to view and enjoy life in a different way. The bottom line is you've to manage money smartly and lead a disciplined lifestyle.