Before you start saving your money, you should understand the basic difference between a want and a need. You have to specific about what things really matter and what things do not. Only then you can start living your life more frugally, goal-oriented and efficient. Below are some of the basic tips for living frugally.
1- Learn Your Resources
You cannot live frugally until you know your money, where it comes from, where does it go and how much of it comes and goes. It is like one of the basic need to live frugally. If you would not have a strong grasp on your financials, you will never be able to live frugally.
2- Spend Less Than You Earn
Once you know everything about your resources, it is time to make changes and live below what you earn. The cut you will make from your expenses by living on a lower budget than the amount you earn will open doors for investments, savings, and will eventually fuel your finances to stability. If are never able to cut your expenses and save more money then you will never be able to make it for a frugal lifestyle.
3- Learn the Difference between Expenditure and Investments
You might think that spending and investing are similar to each other but you have never been so wrong. When you talk about investments, you spend your cash for the sake of profits or in other words, to get a tangible asset like training for a job skill, buying a house that will not only save you rent money but will probably be sold at a higher rate, and investing in shares etc. On the contrary, spending is the expenditure of money for buying something that will not increase in its value but will become cheaper with respect to time, for example, eating out, buying new clothes or a cell phone.
Living frugally doesn’t necessarily mean that you always prefer investments overspending as you cannot live without spending money on your basic needs but it is helpful to know the basic difference between these two.
4- Always Go for Quality
Frugal life does not mean that should always go for purchasing something cheap, it is actually about looking out for the best option which can be giving preference to quality rather than price sometimes. For example, a t-shirt that you will buy for $3 but will not last a month and you would have to buy another one for each month will not take preference over buying a t-shirt that will cost $15 but will easily cover you up for the rest of the year.