A Beginners Guide to Frugality
With so many Americans losing their jobs, houses, and fighting the rising costs, frugality is rapidly rising back into popularity. Not surprisingly, many families are searching for ways to combat the growing challenges of our sagging economy. Whether you are unemployed, or simply looking
to make your dollars stretch to replace a battered investment account, many Americans are looking to save a few dollars.
A lot of families may not know where to start, when trying to live a trimmer lifestyle. It can be confusing to sift thru your finances, and know where to begin. The simplest place to begin is by making an accurate picture of what expenses you currently have. This includes everything from housing, to stopping by the corner store for coffee.
Many people find it helpful to track their expenses for a month or longer, as this gives them an accurate picture of exactly where their money is going and what can be most easily trimmed off the budget. If you opt for this, be sure to track every dime you spend, not forgetting those quick trips to the store, or lunchtime vending machines. Track each type of expense in a column, to total up at the end of the month. You can either purchase a columned ledger at your office supply store, or if you have accounting software of any kind you can use that. Break down your categories fairly small, you don't want to put that coffee, eating out or even that bag of chips in your general shopping category. That should be reserved for essential foods for feeding your family. At the end of the month, you will be able to visually see exactly the cost of your vending machine habit, or drive thru detour.
If you are not that organized, I recommend at least taking the next step; make a budget if you do not have one, and reviewing your existing one if you already have one in place. There are few families that do not have areas where they can cut their budget. The trick is to
get a handle on the difference between needs and wants. And before anybody thinks you or I are the frugal police, the goal here is not to eliminate all wants, but to prioritize them, and have a good understanding of what can be trimmed depending on your situation and needs.
Areas to look at:
1) Utility bills - Nearly everybody can make changes here. Check your phone bills for extras; and how many phones do you really need anyway? Power bills can easily be lowered by installing power strips on appliances; then turning them off when not in use, phantom power is a significant drain on your spare dollars. Install insulation on doors, heating pipes, and plastic on windows; you will put out a small investment, for a sizable return. Check your cable and insurance for extras you just don't need, and see if there are providers that can give you a better rate, for what is usually the same service.
2) Groceries -There are lots of ways to save here, start by cutting out; restaurants, soda and junk food. None of these things are particularly healthy for you, especially if your favorite hangout is the fast food joint. Concentrate your dollars on nutrient dense foods that are as close to their natural state as possible, and learn to cook. If you are time pressed, there are dozens of websites that can help you cook good food fast, or make it in advance and package it for fast preparation. Use Coupons, make menus in advance, and make a shopping list you stick to, are all strategies that will help you make the most from your shopping dollars.
3) Travel- There are nearly as many ways to save on travel as groceries, but if you are the kind who opens the door to your car, turns on the key and goes, this might take a bit more effort. Public transportation if it is available, is a great way to save dollars, as well as help you do your part for the environment. If that is not a viable option, then how about carpooling, or combining trips? Perhaps you can split the cost of the trip to work with a co-worker, or even 2 or 3. Do all your errands and shopping on one day whenever possible, that means less trips into town, and less money spent. Whenever possible walk or ride your bike to appointments or errands. If you must drive your car check out http://ririanproject.com/2007/10/07/22-ways-to-make-your-car-more-fuel-efficient/ for ways to make your car more fuel efficient.
There are many ways to save money, and most simply take a bit of research and effort. Simply taking lunch from home could save you hundreds of dollars each month. A budget can help you get your spending under control, and help you identify the areas you can make improvements in.
I have given you a place to start and a few ideas to work with, but there is far more to learn, and places you can go for information.