In today’s economic state, the issue of increasing per capita income has been the solemn cry of all working classes. Should the higher-ups increase income and push up the public’s purchasing capacity, or should the consumers learn to live frugally?
Frugality in its simplest definition is avoiding being extravagant. Here are some simple tips to help
1. Distinguish wants vs. needs. These are two different things. A “need” is something you have to have, while a “want” is something you would like to have. Electricity, water and basic human necessities are considered as needs. Purchasing an air-conditioning unit because it gets hot during the summer time is a want.
Determining the difference between want and need helps in deciding your spending. An additional tip is to choose quality over brand names.
2. Moderation is the key. Social events, for instance, require you to spend. The great thing about spending is that it can be controlled. Cut down on smoking and alcohol intake. A few beers a day can be cut down to a couple of beers a week. Or better yet, you can limit yourself to buying only a couple of beers when there’s an occasion with family and friends.
Also, quitting or cutting down on smoking can save money and your life as well. This lessens the amount of money allocated for this want and also for the medical bills that may come due to the health hazard smoking can cause.
3. Use credit cards wisely. Credit cards give you the sense of having money, when in reality, you really don’t have that much. It enables you to buy your wants now and pay for it later.
Towards the end of the statement cycle, all your bills will accumulate. When bills are not paid, interests are then factored in. Therefore, use your plastics wisely.
4. Research DIY activities at home. Instead of hiring people to service your homes, why not learn a new skill? If you do not know how to do it, you can do online researches. Make sure, however, that you only limit yourself to simple activities; not the ones that require
5. Make your own food. Instead of buying food from a retailer, why not try and make your own? You can do this by starting and growing your own vegetable or spice garden. Or pack your own lunch instead of always eating out at work.
You can also start a family project by asking everyone to help build a bookshelf, a cabinet or a toy chest. This is more cost efficient rather than buying a pre-made product that would
These five easy steps are just a few of a hundred tips that can get you living a frugal life. The only thing to remember is that tips will always be there, but the decision and drive to stick to it and follow it will still be up to the consumer. So have you listed your wants and your needs yet?
About the Author: Thirdy Rosales is doing marketing consultation for Debtconsolidation.com.au. This financial institution provides assistance to some personal monetary issues such as dealing with bad credit loans, providing debt consolidation loans and handling bankruptcy issues. You can follow him on Twitter @Tweetendshout.