Are you the kind of person who rolls their eyes when people start talking frugality? Do you cringe at the thought of being frugal? Well today I’m sharing some tips especially for you–tips to help you make progress toward your financial goals without making you do those frugal things you hate.
Somehow “frugal” for you got a bad rap. Maybe you’re tired of people telling you NO–no Starbucks, no eating out, no cable. Well, I’m not going to tell you NO today. But I promise that if you follow these three tips, you can transform your finances, way more than random little ideas to stop doing this or start doing that.
If you’re new here, I must confess that frugal is kind of my jam. I love helping people save money and live frugally so they can pay off debt and reach their financial goals.
But I know not everyone loves frugality like I do. And that’s okay! You can still reach your financial goals without becoming extremely frugal.
Sometimes people think frugal has to look a certain way, which might be the reason you’ve been turned off by frugality.
For me being frugal means being intentional rather than wasteful with your resources. It’s a mindset that isn’t just about money, though there are often financial implications. Everyone’s frugal looks different.
So the tips I’m going to share with you aren’t to “do this” or “stop doing that.” That’s right, I’m not going to tell you to wash out your sandwich bags or cut your paper towels in half. I’m not going to tell you to use public transportation or stop eating out.
Of course you can do any of those things, but only if you want to.
These three tips might not sound super valuable at first , but I promise they’ll actually have more earth-shattering results than any super frugal hacks I could give you.
Here they are, my three NOs.
Just kidding.
I told you I’m not going to tell you NO, so here are my three KNOWs.
1- Know Your Reason
2- Know Your Priorities
3- Know Where Your Money is Going
These three KNOWS are like a formula for effortless frugality. In just a few minutes you’ll see how the formula can work for you!
1. Know Your Reason
You’ve got to have a reason. Most people aren’t just frugal for the fun of it. (Though if you’ve ever bragged about a good deal you’ve snagged, you know that it can be fun.)
But if you want to improve your money situation, you need to have a goal. What do you want with money right now? What’s your biggest objective currently?
- Do you want to pay off debt?
- Save for a down payment?
- Invest more for retirement?
- Get a month ahead of your expenses?
This reason is going to be why the rest of this matters. If you don’t have a reason to change or be more frugal… I mean adjust your money habits…then you just won’t change. You need a reason that will motivate you to do something different.
2. Know Your Priorities
Being frugal is very relative. One person’s frugal is another person’s craaazy. That’s because we each have different priorities. Let’s take a look at what your priorities are and aren’t and then I’ll show you how you can majorly use this to your advantage.
What do you value? What is most important to you?
It might sound silly to have to think about this because of course you know what’s important to you. But here’s the thing–everything can’t be equally important.
It’s easy to spend money and say “this is important to me” every time. I could easily justify getting fancy ice cream every day if that were the only requirement.
Being “important to you” isn’t enough because unless you’re just spending your money completely thoughtlessly, then you probably are already spending your money on things you value, at least somewhat.
Your money is a finite resource. Using some of it for Priority B means there is less of it for Priority A.
When you prioritize, you’re deciding what important things are more important than other things.
I learned this lesson really well when we were paying off six figures of Mike’s law school student loans. We worked really intensely for several years to pay off that debt. At the time it was our number one financial priority, after paying tithing. I weighed all other financial decisions against the priority of becoming debt-free. I would literally ask myself if whatever I was going to spend money on was more or less important than getting out of debt.
It’s not always so black and white, but getting in the habit of mentally checking your spending against your priorities (and then not making excuses and justifications when the answer doesn’t match your desire for instant gratification) will allow you to make huge financial strides. Don’t give up what you want most for what you want now.
Now let’s see if you’re putting your money where your mouth is in…
3. Know Where Your Money is Going
In order to be frugal (even without being “frugal”) you have to know where your money is actually going. Sometimes money has a way of slipping through your fingers with nothing to show for it. You know the feeling–your paycheck just seems to disappear.
I know this isn’t a glamorous or exciting tip, but if there is one thing you can do to get a better handle on your money, this is it! You don’t even have to do anything about it right now. Just humor me. Without even consciously doing anything else, this one activity can make a difference.
Sit down at your computer and look at your bank and credit card statements for last month. Lump the similar transactions together. How much did you spend on eating out? How much did you spend on clothes? How much on transportation? Try to be specific enough to have an accurate picture–don’t lump “Amazon” into one category if you buy groceries, home decor, and tech gadgets all on Amazon–but don’t drive yourself crazy itemizing everything either.
If you don’t feel like last month was a good representation of your habits, look at another month or two.
Now, put your spending categories in order. What are you spending the most on? How does your actual spending line up with your priorities? Was there anything that was off? Any high spending areas that didn’t match up with your priorities?
PUTTING IT ALL TOGETHER
Okay, you want to know how the three knows–knowing your reason, knowing your priorities and knowing where your money is going–can make frugal living easy? The trick is to spend on your priorities and save on the things that aren’t your priorities.
Bam! That’s the key to effortless frugality. Splurge on the things that matter to you and save (or even scrimp) on the things that don’t matter.
Let me give you some examples from our family:
One of my non-priorities is fashion. Maybe you’ve noticed! I mean, I like to have clothes that match and are in good repair, but I am not into brands and having the latest trends. Since fashion isn’t a priority for me, I can get away with spending very little on clothes. I buy most things second-hand and keep them for a long time, and that suits me just fine! Would I like to have nice new clothes in the latest fashion? Sure maybe, but it’s definitely not a priority for me, so I choose to not spend much in the clothing category.
Now an example from my husband Mike. He’s one of the most frugal, low maintenance people I know. He isn’t fussy about most things. He’s not concerned with having expensive clothes, he’s never paid to have his hair cut in his life, he’s not a restaurant goer, he’s not concerned with what he drives, but he won’t skimp when it comes to computers.
He buys all the components separately and puts the computer together himself. He would rather be frugal in lots of other categories and spend lavishly on his computer things. When we were first married, he would try to explain to me why this part or that was better and why we should splurge on this component for whatever reason, but I have learned to just let him go wild when it comes to computer stuff and appreciate his frugality in other areas.
Here’s one more example that involves both me and Mike. This should ring a bell for anyone who’s been following me for little while. In the past couple of months we have spent over $6,000 on getting a garden going. And we aren’t even done yet! We’ll be putting even more money in as we set up our orchard and continue putting raised garden beds on our newly terraced hillside.
When given the option to spend $6,000, most people probably wouldn’t hire a bulldozer and go buy lumber and dirt and fencing, but we did because it aligned with our big-picture priorities. To put that into perspective, $6,000 is more than our family of eight spends in an entire year on groceries! But we did it and don’t regret it. We spend less in lots of areas that aren’t high on our priority list so that we can spend more on categories that matter most.
How about you?
Have you caught yourself spending on things that AREN’T your priorities?
Sometimes a look at your budget shows you that you’re spending a bunch of money on stuff that doesn’t really matter to you.
Maybe you really, really, really hate cooking dinner, but you don’t really care what you drive. Go ahead. Spend money on pre-made foods or eating out. But don’t also go buy a new car every five years! Think how many more times you could eat out by paying cash for a reliable used car, or even just by reducing your car payment by half. If you really don’t care what you drive, don’t spend a bunch of money on some car for other people to look at. Enjoy dining out instead. That’s your priority.
Or maybe your car is really important to you (like Mike’s computer) but you care much less about where you sleep. If you reduced your rent or mortgage, you could more easily afford the vehicle you really want.
Or maybe you don’t care much about what you drive, or where you sleep, and you don’t mind cooking dinner, but you love to travel! You could reduce your rent or mortgage and lower or get rid of your car payment, and reduce your eating out expenses, and go anywhere you want next year.
The secret to effortless frugality is to know. Know your reason–what you want from your money. Know your priorities. And know what you’re actually spending money on. Then you can make adjustments so that your spending is aligned with your priorities. It’s actually easier than what you’re doing now, and you get to do what you care most about. Just spend on things that matter to you, and save on things you don’t care as much about.
So what are some non-priorities for you where you can ruthlessly cut your spending? I’d love to hear in the comments below.
Today I’m excited to be collaborating with a really fun YouTuber, Wendy Valencia! If you don’t know Wendy, she and her husband are also working to pay off six figures of debt. She has a big heart and an interesting backstory about how they got the debt. She shares her personal finances and really takes you through her journey, sharing the wins right along with the challenges, all in a lighthearted and humorous way. Go check out her channel and tell her I said hi!
In fact, today Wendy is having a fun discussion about the differences between between being frugal and being cheap! Maybe what has turned YOU off from frugality is that you don’t want to be seen as cheap. Well she’s sharing lots of frugal vs cheap examples in her video below!
Livecoupons net says
Informative article, it was very helpful! I simply began in this and I’m attractive more familiar with it better! Thanks, keep doing amazing..
Billy Burke says
Thanks for sharing wonderful post!
Dollartrak says
Money is made to be spend. You are basically prioritizing it’s spending on your goals. This is totally how it should be.
Where people run into trouble is when they make large purchases that do not align with their goals.
Lisa says
Our priority is paying off student loans. But, we had to put that on hold for a little bit (less than a year) because a new priority came up. We needed a bigger car! Our three growing boys were squishing in the back of our Toyota Camry and we could never take friends or grandparents with us anywhere. We knew we were making a cross-country move and there was no way we could do it with a small Camry. So, we took out a loan for a minivan and paid it off in 10 months. We calculated we paid $200 in interest on the loan and it was the best $200 I spent! The six day drive from coast to coast would have been SO MUCH harder with those three kiddos in each others space the whole time. Anyway, I don’t envision us having to ever buy another van. Plenty of room for camping gear, friends, grandparents, etc. I love it. And we were able to stay on track with our school loans too!
Rebecca says
Our biggest priority is paying off debt. Having said that our thing is entertainment…at home. We do not go to the movie theater we buy it off Amazon prior to release (cheapest time to buy). We probably have over 500 DVD’s that we watch regularly (nothing better than family time!). Also my husband and I love to play Air Hockey but that’s expensive if you go somewhere so his buddy had an amazing in great shape air hockey table that they gave well over $1,000 for we bought it used from him for a fraction of his original expense.
We also like to eat hibachi meals so we bought a Blackstone and that is by far the best money we ever spent…no more eating at the hibachi restaurant. We can just whip it up at home on the Stone and it’s delicious and there are always leftovers for the next day.
I guess the entertainment and the Blackstone were are “priorities” aside from paying off debt.
My priority for next year is to have a full garden. That way we are able to can as much of it as possible to eat through out the year. Health issues this year didn’t allow for a garden.
Megan says
I just started my debt journey this year and it’s because of the know where the money is going step! I had gotten a promotion at work last summer which came with a pretty hefty raise, but six months later I was still living paycheck to paycheck andUsing credit cards to make the rest until I sat down and saw how my two shirts here and one dress there or my stops to grab food were adding up to some pretty crazy numbers even though the Individual transactions themselves weren’t expensive. Now I’m super close to living on half of my income and I’ve paid off almost half of my debt, all in about six months. Wish I would’ve sat myself down with my bank statements sooner!
Julie says
I will spend money on books. We homeschool and that’s part of my reason for owning a wonderful personal library but I also just really love books.
I am with you regarding fashion. Right now I’m wearing an old running t shirt of my grandpa’s from 1985.
Karen says
Enjoying meals is a priority for us, (especially my husband), whether that’s a new recipe to try at home or going out with friends. My husband grew up with parents whose priority was not what they ate. In fact, my FIL really preferred bland foods to be served. They ate a basic diet that was pretty much repeated each week; to my in-laws, one ate as a necessity for life. My husband has turned that around is if to say he lives to eat. He looks forward to trying new seasonings or cooking methods, growing much of our own produce, and ambience in a restaurant always gets his attention. Before the pandemic we’d go out to eat 2-3 times a month, often after church with another couple and their family. However, driving new vehicles or wearing the latest fashion trend isn’t our thing at all. We recently traded in a 2002 Tahoe and still have a Honda that has over 220,000 miles. About half of my clothes have come from a cousin that culls through her closet often and sends bags of perfectly wearable items 2-3 times a year. Along with allowing some money for going out, the bulk of our budget focus is retirement.
Yma P. says
Thanks for the link to Wendy V. It was a fun video.
Charlie says
I do not think that you guys are strange or have your priorities out of whack. I built a couple computers, and my son and daughter each built themselves a computer from parts and loaded the operating system so they would have a better understanding of the mystery box. I invested in over 30 fruit trees, six raised beds, blackberry, gooseberry, black currant, raspberry bushes and strawberry plants. I also bought a used diesel tractor with a bucket, rototiller, post hole digger and a flail mower. I also put an electric fence around the whole garden so it would not be devoured by deer and other varmints. I spent more in the neighborhood of $16000. I expect to see great yields each year and years to come. The tractor is also used to clear snow and to keepbthe back field under control as I planted clover for the colonies of bee hives to forage on. Plus the chicken coop and a couple dozen chickens. A side business, organic farm as well as a hobby, that feeds the family. We aren’t into the latest cars, don’t spend money eating out constantly, or taking extravagant vacations. We do haircuts at home, a big money saver, without sacrificing quality. My wife’s best friend even stops by to get her locks trimmed, when my wife has me trim her long hair as she likes her mid back length hair to remain attached to her head. We have an antenna on the roof to get 30 local and national networks free with no monthly subscription fees. I have a couple pensions paying now, a military and federal civil service. So worrying about saving for retirement is no longer an expense to pay.