Why frugal living will benefit your finances

Many think frugal living is a waste of time. However, frugal living is a key component to living a debt-free, stress-free life. In fact, many millionaires live on the frugal side. Why? So they can continue to accumulate wealth and save money.

What is frugal living?

Frugality means you pay attention to prices and find ways to save overall. Yet, frugality often gets a bad rap and many view it as synonymous with the word cheap. However, being aware of your budget and finances is a far cry from driving all over town to save one dollar on a pack of goldfish.

However, knowing how much money you have coming in and how much going out so you can make good financial choices will empower you and help you build savings. Frugal living is living a life based on experiences instead of spending frivolously. Furthermore, the frugal buy quality over quantity and display patience and will power before buying an expensive item on a credit card.

Why live a frugal life?

Saving money on little things can add up. If you want to retire early or save for a vacation start small and see how much you can save over the course of a year. Over time, you will see your money start to grow if you choose to invest. You can use the extra money to pay down debt and boost savings.

How to live frugally

Start by keeping a spending journal. Write down everything you buy for one month. Use your journal to make changes in your finances. What areas can you cut back? In your evaluation, find areas of your budget that are "wants" and make cuts accordingly. Make sure you have enough money to cover your "needs" and consider getting a side job if you are running short on funds and adding to your debt.

Use cash and put away credit cards to avoid more debt. If you are trying to get out of debt, make sure you are paying more than the minimum on your credit card bills or loans.

Find small ways to cut back and invest your money. Watch your bank account grow. Can you cut out your expensive morning coffee and opt for making coffee at home? Cutting these small money-wasters are the key to future financial success. Try cutting some of the following:

• -fast food
• -smoking
• -drinking
• -lottery
• -gas station snacks

The truth is we all have something we waste money one. Find your weakness and make needed changes. Can you make your coffee at home? Can you buy snacks in bulk so you are not tempted to buy gas station snacks at a higher price? Find areas that work for you and you will be more likely to stick with it.

If you are short on ideas, try finding frugal living tips that will work for your lifestyle. Pick a few each month and add to your list as time goes on.

Best ways to save

One area of your budget that is simple and easy to cut is your grocery bill. You can start meal planning and cook at home to cut back. Try coupons and coupon apps such as Ibotta to amplify savings. Try meal planning and create a recipe bank of cheap family meals that you can use in your weekly meal plan.

How will frugality change my finances?

Once you are aware of how much you spend, you can truly change your financial life. Start cutting back on small areas of your budget and make a habit of saving money over time. Then put the money in an emergency fund, retirement fund, or investments.

In conclusion, saving money doesn't have to be difficult. Find small things to cut out of your budget and keep at it. You are on your way to being a frugal millionaire.