Everyone knows that it’s important to be smart with your money. As rent rises to new levels, expenses mount, and costs get higher, it can be hard to make sound financial decisions. But coming to the rescue is the old practice of stretching your dollar and keeping a close eye on how you spend your money. Learning how to live cheap can help you save more money, meet your financial goals, and eliminate wasteful expenses from your life.
That’s why this guide will give you an introduction to how to do just that. We’ll get into how living cheaply can benefit you, and then we’ll discuss some quick measures you can take to improve your financial literacy. Finally, we’ll link you to some great resources you can use to learn more about frugal living.
What Does Frugal Mean?
Frugal is a word that means “thrifty.” It means being economical with your resources, spending as little as is necessary. Recently, frugal living has become a more popular lifestyle. The goal is to maintain a conscious awareness of how much money you’re spending, only focusing on things that are essential to improving your quality of life.
It’s important to understand that living cheaply isn’t a bad thing. Rather, it’s wise to plan for the future and save your money for when you need it most. For example, saving up for a big vacation or holiday is easier when you don’t have unnecessary subscriptions eating away at your bank account. Also, medical expenses are easier to manage when you have a rainy day fund. Therefore, frugal living is a smart way to succeed financially.
How To Live Cheap
When learning how to live cheap, it might sound like a miserable life: clipping coupons, buying things at thrift stores, not going out from time to time. But it’s not about that at all.
Basically, it boils down to the following:
- Saving money. This sounds simpler than it actually is. Think about it: you can’t spend a lot of money if you don’t have a lot of money. And if you keep spending money, you can’t save money.
- Making a budget. There are many ways to do this, but an easy one is to give each dollar a job. Use a spreadsheet or a free app on your phone, but plan out how you’re going to spend your title loan or paycheck.
- Tracking your expenses. If you’re often worried close to the end of the month, try to see where your money is going. Keep a list or spreadsheet tracking every dollar and cent that you spend. You might be surprised at where it’s all going. That $4 coffee every day can cost you $120 over a month, for example. And a $10 online subscription is easy to sign up for but can cost you hundreds of dollars over a month.
- Evaluating your needs. Everyone’s different, and everyone has different financial situations. See what you absolutely need in your life: rent, phone bill, food, water, electricity. Do you really need to keep up with the latest fashion trends? Is it necessary to trade in your old phone every time a new one comes out?
Conclusion: Getting Into Frugal Living
Getting into frugal living is an art, and there are many ways to save your money, invest, downsize and be thrifty. It’s a great idea to learn about the subject by reading online blogs dedicated to frugal living. There are people just like you trying to make it, whether you’re a college student, a mom with three kids, or a budding entrepreneur with a great business idea.
At Advantage Financial LLC, we know how urgent it can be when you need quick cash. That’s why we’re ready to work with you for your car title loan. We’re a registered Credit Service Organization (CSO) with the Secretary of State of Texas. We also have the appropriate licensing and credentials with the Office of Consumer Credit Commissioner (OCCC). We have 13 years of experience serving the communities of Houston and the surrounding areas. Give us a call at (281) 410-5337, and we look forward to working with you.