Tips For Saving Money: The Frugal Mindset

by JT on June 2, 2009

More on frugal living, and money saving ideas!

These days, I make it a habit to prepare for the worst case scenario — it’s hard to feel financially secure anymore. Preparation is key for us to be ready for whatever the future gives us; it’s important to always have a plan at hand. On that note, I’d like to share a few strategies on how to have the right mindset when it comes to our financial savings.

Tips For Saving Money: The Frugal Mindset

Here are some basic smart and frugal tips to keep in mind:

1. Distinguish between your needs and wants.

To keep frugal, you’ll want to distinguish between your needs and wants. It’s like losing weight: it’s all in the mind but if we have steadfast will, budgeting will be easy. If you can manage it, then your life will change for the better.

2. Track your bills and manage your cash flow.

Manage your cash flow by getting a folder and tracking your expenses per month, and try to stop spending on things that do not add value. A few examples: Go pre-paid on your mobile phone. Get rid of credit cards that you don’t use and consider using cash for your purchases. Say no to more “additional lines of credit”. Control your cash flow and you’ll better control your financial life.

3. Take part time jobs.

Take advantage of part time job openings in your area/community, and always accept work opportunities that you are capable of performing, if you have the time for them. The more jobs you take on while you are young and healthy, the more money you will be able to save for rainy days. Imagine the feeling you’ll get when you know you’ve got the extra funds ready for use in case of emergencies that you won’t need to pay interest on. So take advantage of those opportunities to earn. Take some risks while you’re young so you can live without regrets and without having to wonder: “why didn’t I do that when I was young?”

4. Scope out those sales!

Going shopping? Before buying anything, consider bargain hunting online first as prices on the Internet are usually cheaper. Also, you may be able to find discount coupons for items that you need by checking out some deal sites. Compare prices online from different shops that are advertising sales. And make sure that you conduct safe and secure transactions when you make online purchases.

5. Watch how you shop and spend.

Trips to the malls are always a death-trap to some; they aren’t able to resist the urge to buy stuff that catches their eye. For those who think this way, here are a few tips to hopefully help manage a shopping addiction.

Here’s one more way to keep yourself inspired about living frugally: keep your eye on the prize. Visualize your goals. If you’re thinking of buying a house or car, or sending your kids to college, think of how you’ll accomplish these goals with the money you save and invest. By building your nest egg rather than spending the money you have today, you’ll be so much closer to achieving the things you’re only dreaming about right now.

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{ 2 comments… read them below or add one }

1 Meaghan June 5, 2009 at 5:59 pm

That first step can be the hardest! Sometimes you are so used to having something (like a Starbucks coffee) that you feel like you NEED it. Learning to make those distinctions make all of the difference!

2 Camilla July 20, 2009 at 1:33 pm

Wonderful post! I am working hard on item #1 (and doubled, since I not only want to save money but also lose some kilos!) and so far my will has been steadfast indeed.

Some of these tips are very simple and should be common sense – but it’s so hard to change habit!

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