8 Frugal Habits to Save Money
Need help saving money? These brilliant habits of frugal people are game changers!
Whether you are struggling to balance your budget or need to meet a saving goal, these habits can help you live below your means and make personal finance way less stressful.
What is frugality?
Frugality is not about forgoing everything that you love. It’s about prioritising the things that really matter in your life, so that you can live your best life without the stress of money struggles.
These very simple frugal habits are not just for people who are struggling financially. Read any interview with wealthy people and they will probably describe these exact strategies.
It’s how the rich stay rich, and get richer, because even the wealthiest have to live within their means!
If you want more tips for saving money, check out these frugal living tips.
Best frugal habits that will save everyone money
These are the frugal habits that have completely transformed my financial situation and helped me balance my budget.
Understanding that frugality is not boring
First of all a money mindset reality check. I always thought frugality was this dull pointless existence, it was dull and that it meant forgoing fun.
But I have learned it’s actually about embracing the real joys in your life and giving yourself freedom – freedom from debt, freedom to make choices about the kind of life you want and the freedom that comes from peace of mind of knowing I can pay my bills.
I think it was also important for me to recognise there is no one-size-fits-all model of frugality – your version of frugal is whatever you need it to be.
Your picture of frugal living might look really different to someone else – it depends on so many things such as whether you live alone or have a family and where you live. As a family the things you may cut back on to prioritise your real needs may look very different to a single person living alone.
Being frugal isn’t about ditching everything you love and living on beans on toast and pesto pasta every week.
It’s about being more intentional with your spending so your money works for you to create a life you love, rather than spending habits dictating the type of life you get to live.
Frugality is about prioritising where your precious money goes.
So start by thinking about what you want your life to look like in one, 5 and 10 years time. Where do you want to be? Frugal people are intentional and make a plan after crunching the numbers. They have a why – what it is they are saving for – that is their focus, rather than spending mindlessly.
When you know what your why is, then you can make a plan and ensure there is room for savings in your budget to meet your goals.
That might be a new house, an emergency fund that gives you peace of mind or a travel budget. Once that is clear in your mind, making smart budget changes becomes much easier.
So your first habit is to adopt that mindset that frugality does not equal zero fun. It is about taking a good, clinical look at your finances, considering your financial priorities, the stuff that really brings you joy and will make your life better, and making a plan for achieving them.
Cut back on waste
Being less wasteful applies to food, buying new stuff and energy usage.
When we make a plan to use the things we already have, to make do and to make sure we purchase things we will get great value from, then we can save money. We spend less on buying excess stuff and we don’t waste the things we already have.
With food you need to make a plan to use up every little thing.
For example I used to always have a bag of mouldy potatoes forgotten in a drawer. Now I will buy some for a roast, cook every potato, and then fry off the cold leftovers for a Monday meal and even get an omelette out of it for lunch.
My point is, I make a plan for using up everything.
For energy it’s about switching off stuff we aren’t using, so-called vampire devices that drain energy and cost us money, and finding cheaper ways to do things.
You will find line drying clothes outside cheaper than a tumble dryer.
A dehumidifier also works out cheaper than a tumble dryer for indoor drying.
When it comes to buying new stuff that you don’t really need, it’s about turning away from impulse purchases and instead focusing on buying only what you really need.
You should always have a fun budget, that allows you some non-essential spending just for fun. However spending without thought – where you spend even though you don’t really know if you can afford it this month – is what frugal people avoid.
Consider if you can get it cheaper
Make it a habit to seek out simple ways to save on your regular expenses, so you do not have to sacrifice them but you trim your expenditure.
I’ve stopped going to hairdressers for colour and now do it at home, that’s £600 saved this year on highlights.
I may pop in for a trim at some stage, but I can trim it from home in the meantime.
You should also try haggling and researching cheaper utilities and subscriptions. I saved 40% on our Sky TV bill just by calling them and saying I was prepared to leave. Check out how to haggle down your Sky bill here.
Do repairs yourself where possible.
Find ways to cut costs on things you love. One great example is this cool free cinema tickets for £1 hack. Just head to Compare the Market and buy a UK-only one-day travel insurance policy, the cheapest option will be £1.
You don’t have to be going anywhere, what this does is unlock the Meerkat 2-for-1 cinema tickets deal, so for just £1 you will get a year of half price tickets!
Practice mindful spending
Frugal people practice mindful spending – where you spend with intent and not mindlessly. You plan your spending, aware of where your money is going and whether you can afford purchases.
With mindful spending you understand the difference between wants – stuff you do not need but like the look of such as those new shoes – and needs – the stuff you actually need to live, food – the roof over your head, essential clothes etc.
So stop and wait before a purchase, always have a cooling off period before you buy and consider will this new thing fit into your new life in a way that enriches it.
Create a wish list and revisit it to consider what you actually need from that list. Plan your purchases, so that you avoid impulse buys. These used to cost me hundreds a year.
If you get a pay rise the temptation is to increase your spending in line with that, but you should use that opportunity to speed up the time it will take to meet your savings goals rather than imagining it has given you the freedom to spend mindlessly.
Embrace minimalism
Be grateful for what you have and be content living with less. Society is very much geared up towards owning stuff and buying even more stuff.
Instead I try to really consider the things I need, appreciate those things and consider whether anything new is going to truly bring something important to my life.
Cut back subscriptions you don’t use, learn to cook your favourite takeaways rather than buy them, reuse stuff rather than throw it away, unsubscribe from brands that make you want to buy, spend less time on social media so you aren’t tempted to shop for stuff that fills your house but doesn’t really bring you joy.
Embrace the simple joy of the stuff you really need.
Try making a list of the things you actually truly need. I bet it’s pretty short and largely consists of the people in your life, not stuff.
Take the emotion out of buying
This can be really hard especially if you have a habit of buying stuff as a reward.
But when we remove emotion from buying we are far less susceptible to impulse purchases – that habit of buying because we had a bad day or because we worked really hard on something.
If spending is fulfilling an emotional need for you, such as curing boredom or loneliness, take a step back and consider what the trigger is and what you could do instead of shopping. It’s all about changing habits.
Do a regular stock check
Being more aware of what we already have is key to not buying more stuff we don’t need.
It’s useful to regularly go over the clothes, toys and food in your home.
Some stuff can be sold to make extra cash!
And it lets you know what you have, so you don’t double up.
It’s about simplifying your home. For example, I often bought new bits of furniture and storage to cope with the stuff we had. That just meant I had even more stuff in the house.
It’s better to take it down to the basics of the stuff you really need and that adds value to your life.
Have a good declutter, putting things into keep, store, sell and donate piles.
Be in it for the long haul
It’s a marathon not a sprint. Part of frugality is being prepared to make a long-term change to your habits and attitudes towards spending and saving.
Once it becomes a longer term plan, then it becomes easier the longer you continue, because it’s now a habit.
Your plan for savings will look different to mine. But when I think about building wealth for the future I am considering my pension, savings for our next house purchase, my kids savings accounts and my sinking funds (to pay for annual purchases).
