17 Proven Money-Saving Habits For Frugal People
Your long-term savings goals don’t all have to be big-picture investments or retirement accounts. Not that you shouldn’t think of those things but it can make a huge difference for your financial future just by editing a spending habit here and there. When it comes to saving dollars you need to do what makes sense for you.
Read: 6 Genius Things All Wealthy People Do With Their Money
17 Frugal Lifestyle Tips To Develop Money-Saving Habits
Next time you go to download a random app on your cell phone or head to the grocery store, you should take a beat and see if there is wiggle room in how you approach thinking about necessary spending versus things you can cut back on. Whether the changes are big or small the impact on your monthly budget will be noticeable.
Here are 17 money-saving habits frugal people recommend:
Conserve energy to save on utility bills.
Get rid of unused subscriptions.
Negotiate your bills and rates.
Stick to your grocery list for planned meals.
Try DIY projects.
Buy generic instead of name brand.
Save more money than you spend.
Pay yourself first.
Invest where and when you can.
Travel beneath your means.
Only use cash when possible.
Budget out your needs and wants.
Take care of your health.
Eliminate impulse buying.
Buy from thrift stores or second-hand.
Set your money up for it to earn more.
Take care of your belongings.
1. Conserve Energy To Save On Utility Bills
Not only is reducing your energy consumption and carbon footprint good for your wallet but it’s also good for the environment. There are many small habits you can pick up to cut back on your utility bills and save you a ton on your monthly expenses. Here are a few examples:
Use cold water cycles for your laundry.
Make sure to turn off any lights you aren’t using when you leave the room.
Unplug electronic devices when you aren’t using them.
Upgrade old appliances to more energy-efficient ones to save money in the long run.
Switch your light bulbs to longer-lasting LEDs.
Seal up any air leaks to better insulate your house and reduce wasteful air conditioning or heating costs.
2. Get Rid of Unused Subscriptions
Some of the biggest budget bleeders are all of the subscriptions to streaming services or apps you have on autopay. Every month your checking account takes a hit and you may not even notice. Though individually they are small amounts of money, altogether they add up to quite a bit.
Getting rid of subscriptions you don’t use, or even ones you under use can save you hundreds of dollars a year. You can also start by removing your saved credit card information from various accounts so you can see where money is getting automatically deducted.
3. Negotiate Your Bills and Rates
You ma already pay so many bills automatically. Did you know that that some of them can be negotiated down, though? For example, you could call your credit card issuer and see if you can get a lower APR or even get your late payments waived. It’s worth exploring, as this could save you quite a bit in what you pay per month.
4. Stick To Your Grocery List for Planned Meals
Ordering takeout or eating at restaurants all the time can blow through any excess funds you could be saving. To help with this start planning your meals out per week. Once you have the plan, go to the grocery store and only buy the ingredients on your list that are for the meals you have outlined.
5. Try DIY Projects
With all the free tutorials online or on YouTube you could attempt to update or fix things around the house yourself instead of outsourcing a repair person. Though some tasks will need an expert there are many do-it-yourself, or DIY, projects you can handle yourself with just a few simple instructions.
6. Buy Generic Instead of Name Brand
Generic brands can save you hundreds, if not thousands of dollars a year. Between grocery store brand cereal or cheaper pharmaceuticals, there are plenty of options. Just because something isn’t name-brand recognizable doesn’t necessarily mean it’s an inferior product. Most generic brands, especially when it comes to food, are made of identical ingredients to their more expensive counterparts.
7. Save More Money Than You Spend
Though spending money is unavoidable, switching to a savings mentality as opposed to a spending mentality can be a huge shift toward growing your wealth. Saving more than you spend isn’t referring to a ratio but rather to living beneath your means. Whether it’s driving a used car, living in a modest house or taking public transportation try to spend less than you are able.
8. Pay Yourself First
Another great way to develop a money-saving habit is to pay yourself first each month. This is a form of reverse budgeting that revolves around your savings goals, not your expenses. You can think of automatically depositing money into retirement plans, IRAs or even emergency funds as paying yourself first each month.
For example, you can make your savings automatic by directly depositing 20% of your paycheck into a savings account so it is out of sight out of mind. Approaching your savings as an automated expense is a great way to live frugally.
9. Invest Where and When You Can
Investing doesn’t necessarily mean spending a lot of money, but rather knowing where you can put a small amount of money to grow into a larger sum. After you assess your risk tolerance see where you can find some low-cost index funds, stocks or bonds. There are no guarantees, but there are potentially high rewards.
10. Travel Beneath Your Means
Traveling less always saves money, but that isn’t always a fun or feasible option. Instead, try implementing more frugal travel habits on your next trip. Here are some ways to save when traveling:
Book through budget travel apps.
Stay with friends as opposed to hotels.
Pack meals for road trips instead of stopping for food.
Use public transportation instead of renting a car.
11. Only Use Cash When Possible
Digital transactions happen so frequently that you may not be aware of how much you’re spending until it’s too late. A great way to save money is to only take cash the next time you are grocery or retail shopping. Only bring enough cash for the items you need and not other credit or debit options so you won’t be tempted to overspend.
12. Budget Out Your Needs and Wants
Breaking your budget into percentages can be greatly beneficial so you can know how much you have allotted per month. It also gives you a chance to see where you might be spending more on discretionary purchases rather than necessities. To start, you could try something like the 50/30/20 savings rule which is where you allocate funds from your paycheck as follows:
50% goes toward needs such as rent, mortgage, insurance or bills.
30% goes toward wants such as retail shopping or streaming services.
20% goes into savings.
13. Take Care of Your Health
There are many reasons why you should take care of your health, but one you may not have thought of is that making healthy choices now can save you in medical bills later. Certain expensive medications and procedures are avoidable by choosing better daily diet and exercise habits.
14. Eliminate Impulse Buying
To eliminate impulse buying always make a plan or list for whatever store you’re going to shop in. Impulsive spending can add up throughout the month so try and stay mindful of your choices.
For example, you could try the 30-day rule which is where if you see something you want to purchase you wait 30 days before buying. If you still want it at the end of that period you can buy it, but you could discover the temptation is gone and that money is still in your pocket.
15. Buy From Thrift Stores or Second-Hand
Buying from second-hand, thrift or consignment stores not only saves you money on like-new designer clothes but also helps the environment by repurposing goods. You can often cut what you spend on clothing, shoes or home decor in half by just buying gently used items instead of new ones.
16. Set Your Money Up To Earn More
Any savings is good savings but make sure you keep your money where it’s earning more for you. High-yield CD, money market, savings or other deposit account will earn you more interest just by letting your money sit there. This is a win-win savings habit.
17. Take Care of Your Belongings
It’s easy to just throw something away and replace it with a new item. However, just because it is easy doesn’t mean it isn’t wasteful for your resources. Making sure to store your belongings properly, keep up with maintenance or clean regularly can add up to big long-term savings frugal people swear by.
Final Take To GO
The bottom line is that frugal definition doesn’t mean cheap, it simply means not being wasteful of your money, belongings or other resources. Living frugally can be as easy as incorporating a few of these money-saving habits into your daily routine.
This article originally appeared on GOBankingRates.com: 17 Proven Money-Saving Habits For Frugal People
