Most of us we have realized by now that 2021 carries a lot of challenges as the pandemic is still in full force and many countries around the globe are applying strict lockdowns.
That means massive unemployment, debt creation and the collapsing of business industries.
Even though this is a gloom picture don't loose hope because with a strategic plan and some changes of your spending habits you can go through these challenges with flying colors.
The game changer here is to practice "frugality" not a popular word in modern society. You see we have been spoiled as after WW2 we haven't face a serious crisis of that extend.
But our grandparents had and we can learn a couple of things from them.
What exactly is the definition of "frugality"?
The word “frugality” has left a more negative connotation for most people than simply being a saver, a cheapskate or tightwad. Who can forget Mr Skroutz anyway? There is a thin line difference to saving and too much frugality to the point of being awkward and ridiculous.
This is where the negative connotation comes from.
But if you are guided with the right principles and reasons in deciding to live a frugal life, you would never go wrong.
If you have decided to live frugally, no need to be worried of insults. Keep your head up high. And keep your focus through these tips.
1. Delivery and Takeaway Meals - By avoiding to order your meals can save you a lot of money! Practice meal prepping and cook in bulk so you do not fall to the temptation to order or eat junk because you are hungry.
2. Clothing - Naturally, if you are the kind of person who adores signature and designer clothes, do not expect that there will be something left of your take home pay. Instead of being trendy, wear clothes that can easily be matched with your other clothes.
3. Own a Home - If you are planning to move out and find a place to settle, do not be overwhelmed by the excitement, instead be practical. As a start, buy a smaller house or try other ways like rent-to-own, do-it-yourself arrangements, and owner financing.
4. Buying a Brand New Car - If you Just stick to your purpose of buying a car which is to transport you anywhere you need to go you will pretty soon realize that a second hand car in a good condition can fulfill your purpose. With the right planning you maybe able to buy in cash so no monthly payments required. Phew! What a relief!
5. Shopping for Groceries - As much as possible do not go with items that are branded. Choose non-brands and try looking for items on the highest or lowest shelves for best prices. Grab the opportunity and shop during sales or use coupons. Shop your pantry first! Create a meal plan and shop only for the ingredients you need.
6. Family Out - Hopefully Covid -19 will not stick in our lives for ever so when the restriction rules will be lifted be careful not to go to extremes spending your money going out with family and friends. There are inexpensive ways to bond with your family and be entertained like going to libraries, local parks, picnics, visit friends and local church.
7. Buying School Supplies - Stock school supplies at home and do not buy anything fancy.
8. Be contented with what you have and try to live within what you earn.
9. Plan your Child’s College Education - Teach them the ways to be independent and self-supporting by encouraging them to apply for scholarships and “on campus jobs”.
10. Be Aware of your Financial Limitations
11. Anticipate your Failures by Planning - Have always a budget plan so you would avoid impulsive buying.
12. Apply regularly during the year "NON SPENDING" months. These restrictions will help you to build up your Emergency funds from the money you are saving and give you the necessary "cushions" in case you lose your income.
In conclusion practicing "frugality" can help you appreciate more of what you have, make the most out of your existing resources and takes off your shoulders a lot of stress while you are trying to keep a lifestyle that it's way beyond your means.