(OK, there is a slight possibility that I *may* have lied about it being easy)
1. Know your monthly budget
First things first, you need to calculate your monthly budget (you can use my free printable budget planner if it helps) and work out how much money you have left over at the end of the month. Then you can identify where you need to cut back and also have a better idea of how much money you have left over at the end of each month.
2. Stick to your monthly budget
Next you need to get the hang of staying within your budget. If the money you should have left over doesn’t match what you actually have left after paying your bills then you need to revisit step one to make sure you’ve included EVERYTHING. If you have then I’d recommend keeping a spending diary for a month so you can see exactly where your money is disappearing to – you’ll be surprised how quickly the odd thing adds up to.
3. Look for other ways to cut back
Now you have your budget and you know you can stick to it, start looking for other ways to cut back. To me, it’s less about doing without and more about finding ways to make the most of what we have. Meal Planning is a great example as there are so many ways you can reduce your food budget. Another thing you can do is to make sure you’re on the best prices you can get for your utility bills and that you’re as energy efficient as possible at home.
4. Change your way of thinking
Have a read of this post (it’s a short one I promise) and find out the secret to stop spending money on unnecessary purchases! It really makes you think and it definitely helps me!
5. Look for alternatives
If you see something you really want / need, ask yourself if you can get it cheaper elsewhere or if you can save money buying something similar. Can you buy the same thing second hand and save money? Is it something you might find in a charity shop or a car boot sale? Can you at least get cashback on your purchase?
Only when you know you (a) really have to have it and (b) that you have it for the cheapest price possible should you be buying it.
So that’s how to be more frugal in five easy steps.
PS There’s obviously a LOT more you can do but if you’re doing all of the above then you’re doing amazingly well!
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As always great advice.
You are so right, knowing the monthly budget is key! We do a weekly budget and take out the money for each week in cash so we can SEE when it's being spent quickly – no popping the odd thing on the bank card. Works wonders and helped us save up for a house extension in under a year!
Thanks for this, I'm going to print off your list!
Many of us “frugal” people already do most of that stuff. Good job.
I do have to say when you are working full time taking it much further is a new challenge for me.
Some great tips. One thing I do when I need to buy something new is write down what it is that I need. I then make a point of pricing it up new (to see where I can get it cheapest) and also see how much it would cost second hand and how available it would be. By the time you've done all that you either know how to buy it as cheap as possible, or you've decided you don't need it in the first place!
I definitiely need to develop my frugal state of mind some more! Mich x
Mine top tip would be move to a country where the shopping is generally rubbish (not Denmark, I spent far too much on furniture there)… That really really helps! 😀