Simple Steps to Living Frugally
Living frugally isn’t difficult, you simply have to take a few steps. They aren’t large steps, in fact, they are baby steps. The difficult part is staying on the path.
Step One: Know your destination.
You can’t stay on the path towards your goals if you don’t even know what your goals are. Have you ever gone into a grocery store without a list? You wander up and down the aisles, not really knowing if you are getting what you need. This is a lot like your frugal living. You have to know where you are going and what you need in order to follow the correct path.
Step Two: Don’t take every path.
You will quickly find that if you follow every single frugal path that you encounter, you will go crazy! It just isn’t possible. Not everything works for every person. For example, the busy mom with five small children is not going to have time to make homemade bread and everyone’s clothes. She might simply focus on shopping wisely and reducing the utility bills. The retired homemaker may have time in which to make her own laudnry soap and plant a garden. It simply depends on where you are at in your life — and how much you want to take on. There are some things that are just worth it.
Step Three: Keep searching for new paths.
You know your destination, but you don’t always know how to get there. Frugal living is an ongoing challenge. There is no end to it. You keep learning and you keep pushing yourself to save a little bit more.
Step Four: Budgeting is your gasoline.
You have to know where you are spending your money in order to spend less. It often helps to track every penny that you spend. Right down to the penny. Don’t cheat. Those small expenditures can really add up.
Your budget will keep you working towards your goal and spending less each month. This is where you can really sit down and see what is necessary and what isn’t. When everything is on paper, it is easy to see the changes that could be made.
Step Five: Save your savings.
If you save money on groceries, what happens to it? Do you spend it somewhere else? You should save your savings. Immediately write out a check to your savings account for the money you have saved. This ensures that the sacrifices you made in cutting back really pay off. If you don’t save it, it really isn’t saved money.
One of the best ways to keep on the path to your goals is to constantly strive to be frugal. Read everything you can get your hands on. Look at your world a bit differently. Can you cut money by changing something in your household? For example, would a new dryer to replace your old one save you money on energy efficiency? Should you consider having more insulation added to your attic? Would hanging blankets over your windows in the winter cut your heating costs? Look for all the possibilities and you will find that the path isn’t that long.
Martin Lukac http://www.MartinLukac.com , represents http://www.RateEmpire.com , an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com