A frugal lifestyle may stop you finding yourself in debt and able to cut back on expenses in order to repay them.
This is a common problem and reverting to a more frugal lifestyle can be of true benefit to you.
To be frugal is to avoid unnecessary expenses and find ideas and places that avoid money wastage without overly decreasing your quality of life.
If you are trying to save money, we recommend taking into account the specifics of your situation and devising an effective method that works for you.
However, some general tips and tricks can be of great benefit to your money-saving endeavours.
Tip 1 – Set a Budget
Budgeting your expenses is a proactive way to cut down on outgoing payments and make progress in the repayment of your debts and living in a frugal way. There are many ways to budget, however, a common method is to list payment categories and set spending limits on each.
Payment categories include things like food, bills, eating out, clothes, and pretty much anything else that you spend significant funds on in a period (whichever period you deem appropriate such as a month, week, etc).
It is important to keep your budget realistic as if you overextend yourself in restricted funds, it is less likely you will stick to your budget.
To be as frugal as possible, try your hardest to stick to these spending limits, but don’t beat yourself up if you spend a little more than you were hoping. Stuff happens sometimes!
Tip 2 – Eat from home more often
Did you know that, according to an Australian government survey, the average Australian spends $44 a week on restaurant meals. This weekly expense adds up to approximately $2,288 a year!
A simple, but possibly daunting, way to cut down on your spending and living in a more frugal way to repay debts is to refrain from eating out at restaurants and cooking from home instead.
We understand that simply going out to eat may be more enjoyable or easier than making a home-cooked meal, but the saving aspect is well worth the sacrifice!
You can try breaking this habit by purchasing frozen/premade meals from the supermarket, as they are simple to make and may deliver similar results to your favorite fast-food place.
As previously mentioned, be realistic with your goals, however, and avoid reducing your quality of life or missing events with friends in the pursuit of saving money!
Tip 3 – Purchase a Reusable water bottle
We all know that feeling. When you’re at the gym or out for a long day and are just dying of thirst. You head into your local shop or fast-food enterprise to pick up a bottle of water or a cold drink of sorts.
You may think that a $3 bottle of water won’t be a big deal to your finances. Well did you know that Australians spend approximately $600 million a year on bottled water?
It is well worth your while to invest in a quality reusable water bottle to cut expenses spent on an overpriced bottle of water to live in a more frugal way.
Not only will it save your money but will reduce the carbon footprint you leave on the earth, cutting back your reliance on single-use plastics!
Tip 4 – Try op-shopping
Op shopping, known otherwise as thrifting, is the purchase of second-hand or preloved items.
Thrift shopping is a great way to reduce the money you spend on clothing or household items, with op shops often carrying practically new items for a fraction of the cost!
Remember to be patient and have fun with the experience, as it can take a while to find a great item in an op shop! It also reduces your investment in the fast-fashion industry, again cutting down your impact on the environment.
You can also support your local community or those in need elsewhere, as a significant majority of op shops are non-for-profit and function on donations and volunteers, meaning a majority of the money spent will generally support those in dire situations.
Tip 5 – Find free hobbies
A great way to live in a more frugal way is to find hobbies that are inexpensive or free that you genuinely enjoy.
There is a multitude of recreational activities that you can take part in without spending a cent. Hobbies of the sort include nature walks, swimming in the ocean, going for a jog, reading, and writing, as well as many others!
Find a hobby that suits your interest and roll with it, investing your free time in something that truly brings you joy.
A lot of us have been down the “I’m bored, I’m going to shop online” rabbit hole, but finding an activity that costs little is a proactive way to avoid this.
Not only will it benefit your finances, but a simple stroll in nature or a book that you love can improve your mental health and wellbeing, as well as your general appreciation for the world in which you live!
Tip 6 – Buy high-quality items
You may think that spending a smaller amount of money on a low-quality item will save you money. However, this is usually not the case.
The common breakdown of essential items may increase the money you spend on such things, as you will constantly find yourself replacing them.
It is wise to invest in items that will last you a long time, rather than save you money in the short term.
Tip 7 – Grow your credit score
Having a high credit score is known to save multitudes of money on interest and repayment levels.
A credit score reflects your likelihood to repay loans to creditors and your financial decisions in the past. Creditors will be more likely to offer you the optimal terms on a loan if your credit score is high.
Making active steps towards increasing your credit scores, such as avoiding excessive loan applications and late or non-existent repayments, is likely to save you money in the future.
Tip 8 – Make your own coffee
Did you know that the average Queenslander spends approximately $30.73 a week on the purchase of coffee? This equates to $1,597.96 a year on coffee alone.
Investing in a coffee machine or simply making store-bought coffee a luxury rather than a daily expense is a great start towards a frugal lifestyle.
Again, keep your goals surrounding coffee purchase realistic and try to avoid cutting quality of life, such as not attending coffee dates with friends, for the purpose, as you may disregard goals.
Tip 9 – Cut down on subscription services
A large majority of Australians have a subscription to a television or catch-up service, such as Netflix or Binge.
It’s common to lose track of just how many subscription services are taking money from your account on a regular basis!
As much as these plans may seem inexpensive, generally at around $15 a month, having a multitude, especially if you do not use them, may be an unnecessary expense.
It is wise to consider cancelling some of these services as the costs add up over time and simply watching free-to-air television may show the same or similar shows at no extra cost.
Tip 10 – Plan your meals
Planning meals ahead of time is a great way to prevent unnecessary costs or extra supermarket trips during your week.
We all know the feeling when you have a really tiring day and are simply not in the mood to prepare and cook a meal for yourself or your family.
It is in these moments that you may find yourself tempted to just buy fast food or a meal from a restaurant. Meal planning, the process of preparing meals ahead of time, is an effective method of avoiding that moment.
It also cuts down on daily/weekly food wastage as meals are generally portioned more accurately!
If you find yourself with some time to spare, it is a great idea to prepare meals for the week ahead.