The Art of Frugality: Techniques to Cut Costs and Save Big

Many people hear the word 'frugal' and instantly see it as a negative thing. It's seen as a concept invoked when people don't have enough money and need to give up the better-quality things in life. The truth is, that anyone can adopt a frugal lifestyle. It's not a last financial resort. A better way to look at frugality is to understand that it can help you live within your means while gaining control of your finances. Importantly, if you use the following techniques to cut costs and save big, being frugal can actually add value to your life.

There's an art to frugality, the following tips will help you master it:

Create A Budget

The first step in a frugal lifestyle is to create a budget. In fact, even if you're not being frugal, you should create a budget. To do this you'll want to list all your income and all your current expenditure. Your expenditure needs to be less than your income! Creating a budget allows you to reduce unnecessary expenses but still have the funds to splurge occasionally. Most importantly, you can track your funds, helping to ensure you always live under budget. Tracking your money is the simplest way to cut costs.

Think Twice

If you want to cut costs and start saving think twice before making any purchase. This should apply to all purchases. If you're honest, you'll realise that a lot of what you buy isn't needed. Equally, you may find there is a cheaper alternative. For example, preparing your lunch beforehand instead of buying lunch every day can save you hundreds each year.

Bulk Cooking

There are two benefits to bulk cooking. The first is that you always have healthy food ready to eat. The second is a surprising cost saving. Buying ingredients in bulk is cheaper and prevents unexpected food costs. For example, if you want lasagne, make several of them and freeze them until you need them. The best approach is to have one or two days a week when you prepare all your food for the next week. You'll need a meal plan but this will help you cut your bills even more as you can but just the food you need.

Start Selling

It's time to be honest about all the things you own, compared to the things you need and use often. You've probably got a lot of things that can be sold. This ranges from collecting handbags to outgrown and no longer-wanted clothes. Sell them online and make some extra money to save.

Start A Side Hustle

As mentioned, being frugal doesn't mean not spending money, it means making a conscious decision when and how to spend what you earn. A great way to increase your income to cover essentials or allow you to save big is to start a side hustle. There are plenty of opportunities to do this online or in your local community. Just make sure your side hustle is something you enjoy, you never know where it could lead.

Buy used

Used items can be just as good quality as brand new. You simply need to shop around for the best deals. There will be private ads, second-hand shops, garage sales, and other places locally which allow your to save money on your purchases.

Buy A Used Car

Most people need a vehicle. However, you don't need a brand new one or any of the enticing lease deals. Instead, by a car you can afford with some of your savings. It does the same job. Equally, even when you have a car, walk or bike whenever you can. It's cheaper and better for your health.

Shop Around

Having insurance for your house, car, and other things is essential. However, there can be a big difference in the price you pay depending on where you get your insurance, internet, and other subscription-based services. Shop around before you buy and at every renewal. It can save you a fortune.

Pay Off Debt

This one is obvious but still needs to be said. If you want to be in control of your finances then you need to start paying off your debt. Ideally, pay the debt with the highest interest rate off first. However, you may prefer to pay the smallest debt first as it will be more satisfying and motivating. Either way, focus on overpaying something every month. At the same time, start saving money, ideally automate your savings and arrange for it to be done as soon as you get paid. You won't notice its gone and you'll build an emergency fund.

Summing Up

These are just a few of the ways you can be frugal and save big. By thinking twice before you spend any money you'll find you spend much less. That's because you'll no longer be impulse buying. This will allow you to save money and be more in control of your destiny. That's the real art of frugality.