If your goal is to save more money, be it
for your emergency fund, a family vacation, a down payment on your first home, or because
you're fleeing the nest to live on your own for the first time. Then this guide to frugal living is for you. Now many people cringe or laugh when they
hear the word “frugal” thinking it’s about being miserable and cheap. But that
couldn’t be further from the truth. Frugality is not about dropping every possible
purchase you can in order to save as much money as possible. Rather, frugal living is about avoiding wasteful
and extravagant spending so you can give your hard-earned money an assignment that’s purposeful
and intentional. So what does it mean to be frugal? Well, it means prioritizing what’s most
important to you and cutting back on those things that aren’t. Now I already know what you're thinking. And
sure, cutting back and not buying your favorite iced coffee, mocha latte thing, or going out
to eat occasionally will help save money, but doing those things alone will not make
a big impact on your finances. So before you question whether or not this
lifestyle change is worth it, I want to remind you that this is not meant to be a sprint,
but a marathon. Meaning it's going to take more work and effort
on your part to adjust your habits and step outside of your comfort zone. Now thankfully there are a ton of creative
ways to live frugally, and in this conversation, I plan to show you how to incorporate more
frugality into your life so you can save money at a rate that actually moves the needle. I also plan to structure this conversation
in a way that makes it easy to follow and digest. So if you're ready to beef up your
emergency fund, pay off debt or save for those things you dream about then sit tight, lean
in, and let's begin. I decided to start this conversation with
food and groceries because I believe this will be the most relatable regardless of your
financial goals, age, habits, or lifestyle. As a matter of fact, as I think back to the
beginning of my wife and I's financial journey. Back when we were dating. Food and groceries
was the first category in our lives that we made significant changes to in order to save
more, pay off our debt, and regain control of our finances. So what did we do, and what can you do to
save money in this area? Number one is pack a lunch. Let's do some quick math to illustrate this. On average, if you spend $10 a day buying
yourself lunch five days a week, then you will spend on average $2,600 a year. Now imagine if you bought yourself a $10 lunch
every single day for a year. That would average out to be about $3,650 a year. Now I don't know about you, but I'd much rather
save as much of this as I possibly can by simply packing my lunch every day instead. Now, packing your lunch at home would require
extra time and planning ahead but that's nothing in comparison to how much money you would
be wasting if you ate out every day for lunch. Number two is recreate your favorite meals
at home. If you spend a huge chunk of your money on
eating out every week then I can only imagine how much money you spend in one year's time. See, if you're looking to save more then you
should strongly consider recreating your favorite meals at home rather than eating out. Not only will this save you a ton of money
but to be honest it's a bit more fun. My wife and I often bet on how well we can
recreate something and when we do it successfully it feels good and if we happen to fall short,
well it still turns out to be pretty good. Number three is make a shopping list and stick
to it. A straightforward and easy way to save is
to only shop when you have a list. It's so easy to get sidetracked, especially in the
grocery store, which can lead to costly and unnecessary purchases. Now although creating a shopping list can
help significantly you still have to shop smart. So remember to check prices and use
coupons if that's your thing. Number four is reduce food waste. Believe it or not, Americans discard more
food than any other country, at nearly 40 million tons a year. And globally, we waste about 1.4 billion tons
of food every year. That's a lot of waste, both in terms of food
and financially. Now if you take a look at how much food you
waste, it might surprise you. So a simple way to cut back on this and save money is
by designating a zero-waste week. Or do what my wife and I do and make every week and zero-waste
week. All this means is to consume everything you
cook and buy before you go out and grocery shop for more. And as a bonus tip, consider going reusable
whenever you can. This will also help you cut back on your waste but it will also save
you a ton of money over time. Now when it comes to housing and utilities
this is another one of those areas that can make a significant difference in your finances
and how much you're able to save. So here are a few things that my wife and
I have or are currently doing as well as a few ideas that you can try in your life. Number one is downside and pay less in rent
or mortgage per month. A great rule of thumb when it comes to housing
and utilities and making sure your monthly payment is no more than 1/4 of your take-home
pay. If it is, then you might be paying too much
which will result in you not being able to reach your other financial goals because too
much of your monthly income is going into housing expenses. Number two is practice preventive maintenance. Now, this is great especially if you own a
home or have a car. If you're renting instead then just ignore the homeownership part of
this conversation. See preventive maintenance is all about preventing
normal wear and tear from getting worse and becoming much better problems that will in
turn cost you much more to fix. Think about leaks, cracks, flooring, gutters,
oil changes, brakes, transmission fluid, tires, and any other areas that may require regular
checks and maintenance. If you do this in the short term it will save
you a ton over the long term. Number three is learn ways to save energy. So this may include swapping out your light
bulbs for energy-saving bulbs or use window light instead of practical lights altogether. You can also open a window or two instead
of turning on your AC in the summer. Or consider unplugging small appliances and electronics
whenever you're not using them. When my wife and I were in the midst of paying
off our debt, back when we were dating, it required us to make some changes to how we
approached entertainment. And although we were aggressively attacking
our debt with every extra penny we had, we didn't want to forget about each other and
doing things that we enjoyed. So we had to get creative and to be honest,
those moments were extremely fun. Here are a few things you can try. Number one is find deals on Groupon. If you're not familiar with Groupon, get familiar.
My wife was all over it back when we were dating and paying off our debt. And we actually
found some pretty cool activities to do for low that didn't disrupt our debt pay-off goals. Number two is get out and explore your neighborhood. Too often we think that entertainment must
include traveling somewhere and spending money. But it doesn't have to be that way. If you
just get out and explore your neighborhood you might stumble across a free or low-cost
event and activity that interests you. For example, my wife and I go to farmers'
markets, car shows, vegan festivals, live music events, and the like. We find these
events to be entertaining without feeling pressured to spend money we don't want to
spend. Number three is get active. Don't shy away from active activities as a
form of entertainment. Such as hiking, running, playing a sport such as tennis, or volleyball,
or basketball. Rock climbing even. These are definitely acceptable forms of entertainment
that don't cost much if anything at all. As a matter of fact, my wife and I both love
to be active so we turn towards this as our key source of our entertainment as well. Number four is get creative at home. Remember you don't have to leave the house
in order to find something fun to do. Take my wife and I playing Giant Jenga in the middle
of our living room for example. Or you can have a movie night, a game night—if
you're into board games and such, or you do something really different and get all dressed
up and have a dinner date in your own dining room. Whatever you decide to do, just keep in mind
that you don't have to spend a lot or no money at all to entertain yourself. Now, this is one of those areas that we don't
typically think about whenever we talk about saving money. But it's just as important as
cutting your grocery bill in half, saving on utilities, and getting creative with entertainment.
Here are some key things you should focus on. Number one is pay off debt. A really simple way to start saving more money
every month is to cut back on the number of payments you have to make every month. It's said that your number one wealth-building
tool is your income. And if the majority of it is leaving your hands to pay monthly debt
payments then you are missing a valuable opportunity to use that money instead to move you closer
to your other financial goals. So if you have debt, get aggressive and start
paying more than the minimum so you can get it out of your life. In addition to this,
you have to stop borrowing money as well. Number two is build an emergency fund. If you have debt, start with $1000. Above
and beyond that it's best to have 3-6 months of expenses saved. But how does this save you more money in the
long run? Well, emergencies are going to happen, your
car can break down, your furnace or water heater might go out at home, or you might
have a medical emergency and your insurance doesn't cover the entire bill. If this happens what are you going to do? Most people turn towards debt—credit cards
or loans— to help cover these emergencies and others like them. Doing this is will only
add debt and more payments you have to make later. Thus preventing you from saving. But when you have an emergency fund, it means
you can cover these expenses without debt therefore your income can continue to build
your life and your future instead of going towards paying someone else. Number three is automate your savings. Pay yourself first and automate it. I believe
this is one of the easiest and best frugal living tips to help you quickly build your
savings without feeling tempted to spend that money elsewhere. Now it doesn't matter how much you're able
to set aside each month. $10, $20, $100, $1000. It doesn't matter. What does is the consistent behavior of doing
so. Which is why automating it is the best way to go. Number four is get a side hustle. Often when we think about saving more money
we only ever associate that with cutting expenses. However, another way to increase your monthly
savings is to increase your monthly income. So ask yourself how can I make an extra $100,
$500, $1000, or more this month? Do you have a service you can offer others
or a talent? Maybe it's baking, proofreading, cutting grass,
plowing snow, editing YouTube videos, or taking pictures at weddings. See if you have something of value to offer
then there is someone, somewhere who could use your service and help. So don't shy away from starting your business
or hustling your side hustle. As I mentioned at the beginning of this conversation
there are a ton of creative ways to live frugally and save more money. Now in addition to everything
we've just talked through here are a few final thoughts and ideas I'd like to leave you with. Number one sell your clutter for cash. Now there is a time and a place where selling
the clutter you no longer need serves as a good option. But it's important to realize
that you're not going to make back what you originally invested into said item wanting
to sell. However, this is an option to help you make
a few extra dollars that you can save or put towards debt. number two is cut memberships and subscriptions. So gym memberships, movie subscriptions, music
subscriptions, applications, and anything else that you pay a monthly fee for that you're
not consistently using or could go without. This is an easy way to cut unnecessary spending
and save money over time. Number three is shop around and compare prices. When shopping for anything, such as cars,
appliances, insurance policies, electronics it's important that you shop around and compare
prices. Especially if you're preparing to spend a lot of money upfront or over time
like would with insurance, so you want to make sure that you're getting the best possible
price you can. Number four is DIY until the cows come home. One of the best money-saving tips, that will
help save you more money is learning how to do certain things yourself. Now, this can be as simple as cutting your
own hair or as labor-intensive as car maintenance and full-on plumbing issues. Now if you don't have the know-how to do these
things then please be smart and hire a professional, but if you do, then it can save you thousands. I hope I shared something with you that you
found valuable and if so comment below and let me know which section of this conversation
helped you the most. Keep growing, keep learning and always stay
true to you. I'll see you in the next one. Peace!
