Frugal Living

Frugal Living

India is a land of Frugal living, it is something which is taught to every middle-class household in India, but some times when money comes exorbitantly we tend to forget about frugal living.

For the newbies who aren’t very familiar with frugal living, it is something about smart spending and knowing your money. When I was in college my brother has employed in the IT industry. He always complained about how his salary wasn’t enough for him, every time he jumps to a new organization he will have a maximum of 30% hike in his salary. Even then he was cribbing that money wasn’t enough. So what was the actual problem here? Is it really the money he was making wasn’t enough ?? or It was his spending habits. Definitely it is his spending habits. The more the money he made, the more he spent.

Your expense is a huge factor to increase your net worth. You need to follow the fundamental and important rule ” Spend less than you earn “ for this

As I said earlier frugal living is nothing but spending smartly. Spend for what is needed than what you want. There are a few points you can follow to master the arts of frugal living.

1. Track your expenses and start budgeting. This is something which gives you the idea where you are spending most of your money and where you need to take control in order to save.
2. Spend less than what you earn, this means you have to save more than 20% of your income every month to increase your bank balance. There is a trending habit of changing your lifestyle rigorously when your income increases. For example, signing up for a club, or going for an expensive spa which you normally don’t prefer. All these lifestyle changes make you shed more money which is not needed.
3. Avoid Debt and EMI’s, as your income increases you tend to get calls and email for attractive offers for EMI and personal loans, control your urge to fall into these offers and stick your goal to spend for necessary things, spend the money what you have in hand.
4. Don’t sign up for unwanted luxuries unless you going to really need them.
5. Take advantage of freebies and coupons, buy things during summer sales, sell things which you think it no more required or donate it.
6. Pay your bills on time and avoid late fee charges, unsubscribe services that you no longer use.
7. DIY – Do it yourself, learn to do your household chores, your vehicle maintenance, washing and ironing clothes and try doing your household repair all by yourself. Do your own grooming.
8. Buy second-hand goods than spending more money on brand new ones.
9. Share rides, carpool to office, take a cycle to grocery store Save on fuel.
10. Don’t buy it if you can make one by yourself.

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