People have varied reasons for wanting to save money and live inexpensively. In some cases, living frugally is a matter of necessity, such as when a member of the family loses his or her job or when unexpected expenses arise. Other reasons for wanting to live less expensively could be when one parent chooses to stay home with the children, or when an individual is saving money for a down payment on a house or for an expensive vacation. Whether you are trying to spend less money temporarily or to make frugal living your new lifestyle, realize that not every money-saving tip will appeal to you. Take the steps that are relevant to your life, and leave the rest.
Step 1
Track your expenses for a month to see exactly what you are spending your money on. The University of Maine recommends comparing this list to your income and expenses, and using that information to make a budget. Plan what you would like to spend your money on, and put it in writing.
Step 2
Consider spending less money on housing. Financial guru Dave Ramsey suggests not spending more than 25 percent of your income on housing costs. If you are spending more than this, consider moving to a smaller house or apartment. Also consider moving to another city if you live in an area with a high cost of living. See the link in the Resources section below for Forbes.com's list of the cheapest places to live in America.
Step 3
Save money on utilities by turning off appliances whenever they are not in use. Train the people in your home to shut off televisions, lights, ceiling fans and computers when they leave the room. Turn down the heat or air conditioning when you are not home, and consider keeping them a bit lower than usual when you are home as well. Wash your clothing in cold water, and limit the length of your showers.
Step 4
Shop carefully for groceries to save money on food. Take an inventory of what food items you already have, and plan a weekly menu around these items. Look through grocery circulars to determine what is on sale at which stores in your local area. Make a list of what you plan to buy, and do not buy items that are not on the list. The Alabama Cooperative Extension System suggests not shopping when you are hungry, taking your time to compare prices and not being tempted by free samples to purchase items that are not on your grocery list.
Step 5
Save money in many little ways. These ideas might not help you to save a lot of money at once, but they will add up to frugal living when practiced consistently. Some ideas include eating dinner at home instead of going out to restaurants, repairing clothing or buying clothing used instead of buying new outfits, looking for free entertainment options in the community, visiting the public library instead of buying new books, and trying to improvise with what you already have in your home instead of buying new household goods. See more ideas at The Simple Dollar (see the Resources below).
Tips and Warnings
- Consider using cash to pay for everything from clothing to groceries. According to Dave Ramsey, people tend to spend more money if they use a credit card than if they use cash.
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