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I have a great contributed post for you today on frugal living. It’s for informational purposes only, so please consult a financial professional before making any money decisions. Got it?
Living comfortably is one of the goals that everyone seeks, but few manage to safely reach. Also known as having financial freedom, it’s difficult to live comfortably especially if you’re having trouble with your finances in the first place. For instance, if you don’t think that you have enough income or if you think your commitments are costing you too much money, then it’s easy to think that you’ll never live a comfortable life without going frugal.
But is frugality the ultimate answer to all our money woes, or is it a myth that people chase? Let’s delve into a couple of points to help explain it in better detail.
Frugality isn’t being cheap
The first thing to make clear is that frugal living doesn’t always involve being cheap. There’s a common misunderstanding that being frugal means you’re being as cheap as possible, but that’s not actually the case and it’s very rare for real frugal people to buy the least expensive thing they can. In reality, frugality is all about getting the most value out of something.
For example, if a frugal person was tasked with buying a kitchen appliance like a microwave, they’ll do plenty of research and ask around for recommendations before settling on something. They won’t be afraid of spending more money than average on a microwave because they want it to last, they want it to have the features they need and they want it to be power efficient. In comparison, a cheap person will always buy the lowest-priced appliance they can.
In short, it’s always better to do plenty of research into something before you buy it. Living comfortably often means having reliable appliances to use, healthy food to eat and getting a good service. This often means spending more money than you initially planned to, but that’s fine because you’ll be getting a better product or service. If you want to live comfortably, then being frugal is a budget way to approach it.
Frugality can help you manage your finances
Financial security is one of the secrets to living comfortably. As such, it’s important to adopt frugal practices so that you can better manage your money. But first, it’s important to wipe the slate clean so that you can start again with better money management practices. For example, think about how debt consolidation can help you rid yourself of bad credit, or how you can use your currently owned assets to help you pay off any loans that you currently have. Once you’ve managed to clear your record, it’s time to start building better money management practices so that you can secure your future finances.
- Start saving early – If you treat your savings as an expense then you’ll find it a lot easier to start saving early. Consider it something you “pay” for everytime you budget or receive your salary and you’ll find that it’s easy to save money for emergency expenses or future purchases. Frugal people find it simple to build up a surplus of cash because they don’t waste their money on unnecessary things.
- Invest in the future – Another trait of the frugal is that they’re great at saving money for the future. They know how to plan ahead for their expenses and that’s one of the key things to remember when attempting to live comfortably. It’s recommended that you don’t just stash your money into a savings account. Instead, it’s better to invest in things like a student loan, your child’s tuition fees for college or even property. This is because investing in assets gives you more protection from inflation, unlike a savings account.
- Stop spending so much – It sounds like such a simple tip, but if you’re unable to cut down on expenses then you’re not going to live a comfortable life regardless of if you are frugal or not. A great way to cut down on spending is to manage your budget. Make sure you’re not spending too much money by investing in budgeting software that will help you control your finances better.
- Cut living costs – And speaking of overspending, make sure you look for ways to cut living costs to help with your budgeting. Frugal people know how to live with less, and that’s one of the key things to remember when trying to live comfortably. You need to learn how you can save money by focusing your expenses only on the things that you most need instead of excess.
- Use sales to your advantage – Frugal people know how to spot a bargain. Sales are fantastic for when your financial situation isn’t the best, and sales are a great way to save your much-needed cash.
Frugality is a fantastic way to live comfortably because all of the principles are used to live with less. Comfort often means having less to worry about and frugality is a great way to cope with less. This is why it’s one of the best ways to work towards a comfortable life.
Defining what you consider comfortable
It takes many lifestyle changes to truly understand what living comfortably means to you. For some people, it means sitting on lots of wealth, and for others, it means living frugally and getting by with less so that your funds can go towards other important things. Regardless of what your situation is, frugality is a simple and clean way to live more comfortably despite what many people think. Frugality isn’t being cheap and it’s not something that you’re forced into due to unfortunate circumstances.
What you define as comfortable living will be different to what others see it as. This means that you need to personally define what your standards of living are before you decide to switch to frugal practices. For most people, a frugal lifestyle gives enough financial security to be considered a simple and comfortable life.