Living a frugal lifestyle is not something that just happens overnight. But over time you can make lots of little changes that will all add up to more money in your bank account. Here are some my top tips for living a frugal life, let me know your tips in the comments.
Get your finances in order
- Start Investing and not just Saving – Using a “savings” account to save money over the long term isn’t very smart. You actually end up losing money due to inflation and the low interest rates. You’re better off investing. There are lots of different ways to start investing and the good news is you can start with as little as $10.
- Setup an Emergency Fund – An Emergency fund will help you in the future when unexpected expenses come up. Setting up an emergency fund is simple and is something all young people should do.
- Set yourself saving goals – It’s hard to be frugal if you’re not working towards a bigger goal. My partner and I recently decided to buy a house together. So we have a goal of saving the deposit. This energised my saving efforts. Come up with a bigger goal that you want to work towards and record your progress over time.
- Pay off your debts – Before you start investing or savings, it’s often smartest to pay down or pay off completely your debts. It’s easy to put them to one side and forget they exist, but you’ll be much happier if you actively try and work on any debt.
- Stop gambling – Gambling in Australia is a huge problem for many young people. In the long run, you’re never going to make a profit gambling. There are services available to help you stop gambling – even if you don’t think it’s a problem. If you want to gamble, do it on something like Bitcoin where at least you have a chance of making money in the long term.