This is a guest post from Amy Nickson
It is possible to taste financial freedom if you develop some good financial habits. Using credit cards randomly is not called financial freedom. One of the most prudent ways to achieve a peaceful financial life is by leading a frugal life.
Frugal living doesn’t mean that you will seclude yourself from all the fun in life and live a life like a loner. Rather you can change your spending habits a bit and make some smart decisions with your money.
The best part about frugality is that you’re required to give up on much unnecessary expenditure. This not only helps you to save money but also helps you to incur lesser debts.
Below are some frugal practices you should develop to lead a stress-free financial life.
- Avoid going to expensive restaurants
People love to visit restaurants and eating out. But, too much eating out can be unhealthy for your wallet. A lavish dinner/lunch at an expensive restaurant can cost you nearly $2,000 a year. Instead, you can enjoy the handmade meal to save money. If you can restrain yourself from eating out at an expensive restaurants, you can save thousands of dollars a year.
- Formulate a budget
Budgeting involves writing down your total income (any kinds) and your expenditures – fixed and additional one. You will have to adjust your expenditures to stay within your limits. If needed you will have to lower some unnecessary expenditures. While budgeting, you can prepare it on your own or else you can also use a budgeting tool or calculator from online websites that offer you such free tools.
- Follow frugal fashion
Go to a small store rather than a large one to buy your clothes. Instead of following the latest trend, make your own fashion statement. Buy jeans and T-shirts of bold color and use them for casual wear. You can also buy a black evening gown as this color never goes out of fashion. Keep a close look at the offers and discounts at your nearest stores and grab the opportunity of buying clothes at a cheaper cost.
- Cut down on entertainment expenses
Curtail your entertainment expenses like the cable bill, movies, and expensive magazines, and save a royal share of your hard earned money. Try to be little creative and find entertainment in flying kites, playing soccer, and going for an evening walk. You can also spend time with your friends and family at home along with some delicious snacks.
- Save on food cost
Try to change your food habits and save some amount on food. It is advisable to carry lunch at work instead of having food from outside. A sandwich can cost you around $20. So, if you carry lunch from your house, you can save $20 a day, which means $600 a month. Shop your groceries from small stores rather than large ones and keep an eye on offers and discounts. Also, gather discounts coupons and carry them along while going for shopping.
- Save on transportation
It is wise to save money on transportation. Avoid going to college or office every day by your own car and adopt the habit of commuting by public transport. If the office or college is close to your house, then you may even go by foot. This is the best way to save some money and maintain health as well.
- Use cash rather than card
Try to use cash rather than the credit card as this will help you control the habit of overspending. Cards often tempt you to buy things that are not so required. So, it is always better to not carry cards all the time with you. If possible, leave your cards at home when you are going for shopping.
AmyNickson is a web enthusiast. She completed her graduation from Oglethorpe University, Atlanta, Georgia. She works as a financial writer and she shares her expertise through her crisp and well researched articles based on money management, money saving ideas, debt, and so on.