What is the Best Frugal way to have more in your pocket?
We have the tendency to spend so much money that we forget that we should keep a portion in our pocket. Easier said than done, right?! Everyone love spending money, have fun, go to the mall, spend quality time with their friends and family.
It is a big mission to stop spending and have more money, save more for the big project. You could even think about retiring earlier, travel more, drop your level of stress and be more happy.
We may think by making a lot more money is the only way to get out of the situation your in or to have cash in your bank account.
I think earning more income is great, and it can definitely help you reach your goals. But to be frugal is more a option or a way of looking at things that we don’t necessarily need and avoid buying or consume. This way, you will have the right cards in your game to win the big price.
What are the best tips to be frugal to have more in our pocket?
Let see below…
What is to be Frugal?
Source Wikipedia Copyright:
“Frugality is the quality of being frugal, sparing, thrifty, prudent or economical in the consumption of consumable resources such as food, timeor money, and avoiding waste, lavishness or extravagance.”
In a way it means, to focus less on “spending” and more time on finding ways to save money, it could even lead to new experiences.
Why? Because since you have more disposable money, it will give you access or i must say more options to decide what activities you could do. But again, we should not go and spend the full amount saved. By taking a portion of the money, you will not feel bad spending money comparing to someone…
Who did save: let say 500$ extra before the end of the month and decided to go for a crazy luxury shopping spree for a watch! You don’t want to end up in a bad situation, instead use a raisonable amount like 100$. So you’ll have 400$ saved without feeling compress of not enjoying your money.
Don’t think about going broke to have a good time au contraire, you should enjoy everyday with a grain of salt.
Frugal reasons for someone to pursue this direction…
- No more debt
- Less stress in your life
- Enjoy more time away from work
- Be yourself
- Quality time with family
The best thing i could say is, don’t listen to knowone telling you other wise when you want to do something you know is good for you.
Cut the Big Expense.
Thinking about a new purchase like a car per example? Think again before you go visit the dealership, you may end up in a bad contract and stuck for the next 5 years.
- Bad financing
- Car too expensive
- Insurance cost
All of those items adds up really fast on your monthly expsense. When you think that the general price around the purchase of a new car is around 500$ and we don’t even count all the extra items around this new vehicule.
We may think it is a good deal but we end up paying so much interest and the value of the car have depreciated by the time we leave the dealership by 30%. There even some individuals that have so much grave around a particular car they are willing to sign a contract on a 20% interesty rate.
The car is losing value and the cost for the financing in a 5 years period will cost 3 time the cost of the vehicule!
If we want to be frugal , we have to think about any purchase we may think about, it could be better to drive a used car or even a car that i paid for, so you could put money toward a new project like:
- Purchasing your next car cash
- Paying cash for your next vacation
- Save a certain amout of money
- Reduce a certain high interest loan
- and more…
It is always a question of choices, if you feel comfortable to purchase a car at 20% interest rate and this is the only choice you have, go for this option but again alway take your time when car shopping. Never sign a contract on your first inpression, always take a extra 24 hours to think and rest on the subject.
Look around you.
Did you ever took the time for a moment, to look around and see what you have and who you have in your life? Often we are complaining machine and don’t appreciate what it is we have in our life.
Take this moment while reading my blog, to be thankful for what you have. Even if your situation is really bad, your stuggling with debts, not enough money, bad relationship… Always say to yourself it could be worst and trust me when i say it could be worst.
The grass is nto alway greener on the other side, we all have problems and the secret to have the best life?
Just enjoy today before thinking about tomorrow in a certin extent.Of course you should have a calendar but also you should be really flexible because life will always give you a curve ball at the lease expected time.
The secret is to learn how to deal with problems on a daily basis, there is something that will happen ,that you want it or not. We should just learn when we have a issue ,how to find a solution quickly to go on with our life.
As a human we have the tendency to be stock like a hamster in the same wheel instead on focusing on the problem why not focus our energy on finding a solution. I did practice this quick methodology that consist on understanding a issue in front of you and what to do.
- Analyse the situation
- What to do about it
- What could be the solutions
- Course of actions
What could be the result, that you did find a solution that is the best option for you.Or au contraire ,there is nothing you could do to fix it for now and you have to let it be. Understand this, it is not because you failed at finding a solution that it means you failed on your mission to find a solution.
You just need more time to arrive at the right conclusion and from there the solution should be more clearer for you.
Spending less = Good
Why am i saying this?
Hear me out, by spending less you have more disposable money available:
- Emergency Fund
- More money for investment
- Pay debt faster
- and more…
The logic is, you spend less and you will have more money available and also you will need less money in the futur because your way of living cost less than average. So you need less money to leave a decent life because the way your leaving today is properly balance and enjoyable for you.
Again it will require a lot of organisation to have the perfect formula around your situation and your family life. It will impact how you see the use of money in the futur also.
What are we willing to let go in order to have more in our pocket
- Cut maybe our cable bill
- Negociate a better rate for our cellphone
- If you downsize your house (everything will follow)
- Smaller vehicule = more savings
- and more…
There is no perfect formula but by taking the time to evaluate your finances,you will know exactly what you will have to do in order to succeed.
We all have choices to make on a daily bases that is:
- Buy our daily coffee
- Lunch money at work or restaurant
- Drive this big SUV
- Having a vacation home
- Private School
- Latest trends (clothings,electronics…)
It is not always a question of choices but could be a question of following a trend including myself. We are bombarded by publicity on a daily basis and we could not run from it, even on our cellphone is the first thing we see.
I feel like ,we need to be called cave man or cave women to avoid beeing drag by the wave of the spending dilema in our today world.
Just take the time to evaluate your goals for the next year, where you would like to be and take the necessary actions to accomplish them.
Just believe that a happy life is possible, it start with you.
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