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The Ultimate Frugal Living Guide: 18 Tips for Extreme Penny-Pinching

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The Ultimate Frugal Living Guide: 18 Tips for Extreme Penny-Pinching

When it comes to spending less and saving more, there are many ways to get financially fit, but some are much easier to accomplish than others. We’ve put together the ultimate frugal guide for people who are excited about saving money and really want to do whatever it takes to whip their finances into shape. Check it out below.

1. Dry your clothes on a line.

I know, I know. There’s this thing called a dryer that someone invented. Lucky us! However, you can save around $100 a year or more if you hang your clothes up to dry on a line. If you don’t have a yard, you can hang them up in your apartment too.

2. Wash dishes by hand using one sink-full of water.

Some people say washing dishes by hand costs just as much as running the dish washer, but if you use just a minimal amount of water, you’d be surprised at how much you save.

3. Make your own laundry detergent.

Did you know that you can actually make your own laundry detergent? It’s really awesome because you can see exactly what goes into it, which creates a healthier environment in your home.

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4. Take public transportation.

Gas and parking passes get so expensive, especially if you use your vehicle every single day. Do some research to find out how much your local bus or subway costs. You might be surprised at how much you save. Also, ask around your work to see who might want to share a ride with you.

5. Make every gift you give.

With the popularity of websites like Pinterest, there is no shortage of ideas for handmade gifts. All you have to do is search for crafts or gift ideas, and you’ll have hundreds of awesome tutorials and ideas at your disposal.

6. Travel in-state.

Everyone always travels to different states or countries, but I bet you’d be surprised at how much fun you can have within a 200-mile radius from where you live. That way, you can save on hotel costs and maybe learn something new about your community along the way.

7. Give up your smart phone.

I know—these days, smart phones might seem like a necessity, but I lived without one for almost two years and I was amazed at how relaxed and rejuvenated I felt after giving it up. You can also save hundreds of dollars a month on your cell phone bill. If you really, really want to save money and penny-pinch, this is the way to do it.

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8. Become a coupon expert.

You’ve probably seen the TV shows about extreme couponers, and that can be you too! All it takes it a little bit of time and practice to learn about couponing. You can save hundreds of dollars on groceries this way, so it’s definitely worth the time you put into learning about it!

9. Get a roommate.

Maybe you didn’t have a good experience with roommates in the past, but you can’t deny that having one cuts down on costs dramatically. For the most benefit, ask your roommate to split all bills with you, including electricity and water, so that they will be respectful about their usage.

10. Grow your own food.

Think of how much money you’ll save if you grow your own tomatoes or herbs. Plus, you’ll have awesome, fresh-tasting veggies to put in your dinner, which is great for both your wallet and your waistline.

11. Patch up your own clothes.

You don’t have to buy a sewing machine to do this: all you need is a few pieces of scrap fabric and a needle and thread. It will only cost you a few dollars. Plus, you can watch tutorials like this one on YouTube that explain the process in just a few minutes.

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12. Use the Internet from your local library.

If you are really strapped for cash, you can use your local library for Internet access. They are usually open every day, and the librarians are so helpful if you have any questions.

13. Give up cable.

Today, you can catch all of your favorite shows on your computer, so there is no reason to pay $100 a month for cable. Plus, watching TV takes up valuable time that you could be using to hustle and make some money.

14. Use cards or board games as your main entertainment.

You don’t have to spend $20 per person to go see a movie. Playing board games with a handful of friends actually makes for a really fun night—just try it and see. I think you’ll be surprised at how inexpensive and how fun a game night in can be.

15. Cook more meals at home.

Eating out is definitely a drain on your budget. If you start to cook in more, you can save hundreds of dollars a month.

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16. Shop at thrift stores.

You can buy all your clothes and furniture from a thrift store. I always say that it’s amazing what people will give away! You can definitely find designer duds if you look hard enough. Also, be sure to go on 50% off days if your local store has them!

17. Clean with vinegar.

Vinegar can be used to clean just about anything. You don’t have to spend any more money on expensive products. All you need is an old rag and a vinegar/water mix to make your house sparkle.

18. Unplug everything when you leave the house.

Our very last tip is to unplug all electronic devices when you leave the house. Although it might take up some time and only save you a few dollars, this is a must for those of you who want to live the ultimate frugal living.

Of course, these aren’t the only ways that you can save money and live better, so please share your tips with us in the comment section below!

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Catherine Alford

Catherine is the go to personal finance expert for educated, aspirational moms who want to recapture their life passions.

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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