Which category do you fit in – frugal or prodigal? If former is the case, you do not have much difficulty managing your cash, and if you spend beyond your means, you are asking for trouble.
When it comes to shaving expenses off your budget, it seems to be overwhelming – although this becomes the necessity to avoid reliance on loans in Ireland. You often make a nip here and tuck there, but you still find yourself out of budget.
Living life frugally is not as easy as it seems. To take hold of your expenses, cutting down on your discretionary expenses is not enough. Sit and deliberately look over your finances to decide where and how much you should spend.
When it comes to thriftiness, you have to accept that this cannot be temporary. Just because you have paid off your debt, you cannot come back to your previous habits. Many of you blame debt or low wages for being running out of money, but the fact is once you see any improvement, you start throwing away money recklessly and get back to square one.
It is imperative to accept that you cannot be frugal only when you are out of money. You will have to stick to it. Here are some ways to learn the art of frugality.
Wants and needs must not be interchanged
Water, food, shelter and clothing are your basic needs. You cannot skimp on these needs. However, you do not need to prefer brands.
Once a while you can go out for entertainment or dining because it is a big day for you or you want to do so, but do not spend bucks every weekend. Make sure that it is a necessity before spending money.
Do not spend money to impress your peers
Do not give a toss to what others think about you. Look at your needs first. When you join friends, it is likely to overspend. The rule of thumb says you should go Dutch all the time.
Stop comparing yourself with your friends. Just because they have expensive watches and cars, it does not mean you will have the one to keep up with the Joneses. Many people take out loans to fund such significant expenses and end up with financial pain.
Spend money smartly
You will have to trim down expenses to build saving. Stop making excuses like “That will not work for me”, “It is so overwhelming” etc. Before you throw money at something, make sure that you will not regret down the line.
- Pay television is more expensive than satellite one. Try to switch to a satellite service provider.
- Use public transport. Walk on foot to cover shorter distances.
- Use coupons and rewards to save on food bills.
Borrow money diligently
You will likely be running out of money when an emergency pops up. Even though you manage to stash away some cash, savings sometimes fall short. If you need money urgently, for instance, you want it for a medical treatment, and no guarantor loans can be an ideal option. It is not wise to borrow money just because you want to buy expensive goods.
Give up bad habits
Bad habits can hold you back. Excessive smoking and drinking affect not only your finances but also your health. Some people get in gambling to become rich faster, but most of the people end up losing everything.
Buy a second-hand car
Do you want to buy a car? You must be getting confused about whether to buy a new or used one. Even if you buy a new vehicle, it will depreciate. It may prove an expensive option if you are financing it. Whether you want to pay outright or finance it, a used car seems to be much more affordable.
Get bang for your bucks
Whether it is a pair of jeans or a gadget, make sure that you get quality. Try to make the most of your money. Focus on quality instead of quantity because it will save your money in the long run.
Though frugal living life is not a cinch, it is not impossible either. There is much more to do apart from cutting back on discretionary expenses. Try to adapt to a thrifty lifestyle.