If you're reading this, I'm earning money. Thanks for helping to feed my family. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not a CPA, lawyer, or doctor, although my parents wanted me to be all three. So, talk to a professional before acting on anything you read below.
2020 has been a challenging and uncertain year. We all learned that a financial crisis could hit anytime if our finances are not planned properly. The pandemic is having an intense effect on household finances across the globe. A lot of people have been laid off or required to accept reduced hours on the job.
Living frugally is more paramount now than it has ever been in most of our lives. Frugal living is merely being cautious with your expenses and prioritizing spending on essential things. This does make an individual cheapskate, but makes them resourceful and living within means. Those who live a frugal lifestyle spend their money wisely.
In 2021, we should all implement a few frugal living methods, never to find ourselves in a tight monetary situation.
Meal planning always works. If you know how much groceries you will need, you can purchase them in bulk to avail of reasonable offers. Planning ahead of time allows you to make optimum use of the current pantry inventory and keeps track of your family's favorite meals. This will also allow you to maintain and stick to a budget-friendly grocery list required to prepare the meals.
Related to frugal living to save money: 5 Lifestyle Changes That Will Save You Money
The pandemic compelled a lot of people to enter the kitchen and make their meals. This is a great habit to carry forward as it reduces eating out or ordering takeaways. By learning to cook, you can save a significant amount of money. If you wish to advance this, you may opt for a plant-based diet for health and frugality.
Having a planned budget is one of the most successful and oldest financial advice. A real budget prepares you for what is left after spending your income on fixed expenses such as utilities, mortgage, insurance, etc. Quarantine living has made a lot of individuals shop online, and orders frequent takeouts. A great way to avoid these expenses is by deleting the apps from your phone.
It is safe to say that the world is uncertain and will continue to be like that. We need to secure ourselves in case of a crisis. A percentage of funds set aside each month for an emergency fund can come in handy. A small loan online is a better option for a normal purchase than using up your crisis fund.
The market is cluttered with places to buy used products like phones, vehicles, gadgets, etc. There are bright chances of someone's trying to sell the thing you're looking for, and they'll be doing it at a good deal and a lower price as compared to the cost of getting a new one.
Make an exhaustive list of items you possess but don't need and start selling them online or in thrift stores. This will help you live a minimalistic lifestyle, excellent for mental health and the wallet.
Once you start to downsize, you will realize how much you save and avoid spending money on useless things.
Seek out entertainment for no cost in your community. Your library, neighborhood park, or community center will have plenty of free events listed for everyone. Other free entertainment ideas include:
If you have subscribed to online streaming platforms like Netflix, Amazon, YouTube, and all, you don't need a cable connection. It is better to disconnect the cable connection and save the monthly installment money.
Most retailers offer massive discounts during Christmas, Black Friday, etc. If you plan to buy high things that are expensive on Black Friday or Cyber Monday, research well in advance on the best deal around or if you can make do with a cheaper alternative.
It is not surprising that a considerable amount of expenses is spent on impulsive purchases. As a solution, always have a list of items you will buy and always stick to the plan. Also, consider what triggers your impulsive buying behavior.
Living frugally doesn't mean living in discomfort or difficulty and saving the entire income. It is more about using money resourcefully and spending on what is essential. The COVID crisis has been great for learning and for embracing a frugal lifestyle. A frugal lifestyle can help you safeguard money effortlessly and manifest healthy and positive life changes.
Lily Tran is a content writer, working for MoneyTap, who writes about all things Finance. Her passion for credit, debt, loan & investment drives her to help readers get an insight about everyday finance.
Simple Ways To Reduce Custom Label Costs
3 Things To Consider When Shopping For A Home Loan
Tips for Reducing Shipping Costs
How Coronavirus Affect House Prices
5 Tips for Tracking and Managing All Your Debts
Why You Should Not Get a Credit Card
A Guide To Keeping Your Finances Safe During A Pandemic
Top 3 Things You Should Know About Reorganization Under Chapter 11