Stop being selfish and cheap and practice a frugal debt free life

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Stop being selfish and cheap and practice a frugal debt free life
Stop being selfish and cheap and practice a frugal debt free life

Is frugality bad? Absolutely not. Instead, it helps you manage your finances in a better way so that you can meet your monetary goals.

Being frugal means you stop wasting money on unnecessary things and use it for purposes that matter to you. It doesn't mean being a cheapskate or selfish.

A cheapskate person can save money for the time being but may have to spend more later. And, a selfish person loves to spend on himself/herself instead of taking into account the requirement of other members in the family.

Cheap vs. frugal - How to draw the fine line

Check out how to stop being cheap and practice frugality.

Lifestyle choices: A cheap person: A frugal person:
Gifting others Regifts a gift just for the sake of giving something Makes homemade gifts keeping in mind what the recipients will like
Free refreshments Stuffs his/her pockets to replace 3-4 meals at home Makes a meal from the available food items
Alcohol etiquette Secretly carries alcohol to a bar Opts for having drinks at home with friends before a night out
Eating in a restaurant Orders relatively more expensive food and drink but doesn’t tip Orders comparatively less expensive appetizers and dishes
Hiring contractors Accepts the lowest offer without considering other factors Researches and selects an inexpensive organization
Online subscriptions Gives out false information to subscribe and enjoy the benefits Joins a website for a month

Being selfish is not being frugal

Here is how you can try to be a frugal person and not a selfish one.

Lifestyle choices: A selfish person: A frugal person:
Buying clothes Buys only for himself/herself Plans a budget to fit the requirement of everyone
Managing household Spends more on himself/herself since he/she earns more Spends on items that are beneficial to family, even if he/she earns more
Saving money Can do so at the expense of others Will never do it at the expense of others

7 Tips to live a frugal debt free life

How can you practice a frugal debt free lifestyle? Here’s how:

1 Set a limit on how much you can spend on your needs and wants

Researchers have found that if you set a limit on your needs and wants, you can control your spending significantly.

You have to track your spending. That is what living a simple life debt free is all about.

Calculate your income and expenditure, and decide about that limit. Make sure you consider your needs and have a room for your wants as well.

Above all, savings has to be your priority.

2 Plan a budget that helps you achieve your financial goals

Whatever budget plan you’re using, you need to calculate how much you’re earning and what amount you’re spending.

If you can’t control your money, it will start controlling you.

Based on your financial goals and your earning, plan a realistic budget which you can follow without much difficulty.

3 Stop and think before making a purchase

It doesn’t apply to your ‘needs’ list but is a must do for your ‘wants’ list. Do not think you should do this only when you’re eyeing a big-ticket item; it is applicable to each and every purchase.

Even if you don’t want to wait for days to decide, at least think for a moment; if you’re a bit hesitant, take time and don’t buy at the spur of the moment.

4 Do not wait to repay credit card balance at the end of the billing cycle

This is a great tip for a debt-free lifestyle. You should be knowing that you need to repay your credit card balance at every billing cycle. However, take this step a little further.

I would say it’s a very good habit to use credit cards. It helps you to take advantage of the rewards programs.

Whenever you swipe your card, pay back the amount at the end of the day instead of waiting for the monthly bill.

This way, you’ll have a clear idea about your financial situation since you’re spending in that month itself.

5 Feel happy to say ‘No’ when you need to

You can’t make everyone happy. So, when you’re out with friends and you’re on a limited budget, say ‘No’ if doing something crosses your budget

It is after all your money; so, it’s up to you how you’ll spend it.

Do not succumb to peer pressure.

6 Make living a simple life debt free your priority

‘Debt’ should not be a word you should worry about in your life. Make ‘debt’ your friend.

How?

Take out good debt. A mortgage loan helps you build an asset, your home. By taking out a student loan, you earn a degree that helps you earn your livelihood.

However, a good debt can be a bad one if you can’t manage it properly.

7 Have an emergency fund worth 2-3 months of your income

An emergency fund can save you from experiencing debt problems. You can’t predict your emergency spending, and so, you can’t include that in your budget.

However, you can have an emergency fund to tackle such expenses.

So, what do you think? It isn’t that difficult to practice a frugal debt free life.

Last Updated on: Thu, 23 Aug 2018

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