Are you “frugal”? The dictionary definition of frugal is “economical in use or expenditure; prudently saving or sparing; not wasteful”. I think of myself as a frugal person, and I believe it to be a positive thing. Not only does it give me the ability to build wealth, it helps to minimize my human footprint on the planet. Here are twenty-five habits of frugal people.
Habits of Frugal People
1. Live BELOW Your Means
You’ve likely heard this before. Most of us know it’s wise to spend less than we make, but not many of us actually do it. This is first on the list because it’s the MOST important thing to do, if you want to live frugally. Spend less money than you make. Duh! If you’re spending every penny you earn, you’ll never get ahead financially.
2. Have an EMERGENCY Fund
Save at least $1,000 in a separate savings account, or a money market account, and mark is as your emergency fund. This money should NOT be touched for anything, other than for unexpected things. Frugal people prepare for life’s ups and downs. It’s not a matter of “if”, it’s a matter of “when”. Prepare as best you can for it, by building a rainy day fund.
3. Cook at Home
STOP eating out. If you look at all the money you’ve spent this month on restaurants, coffee, soft pretzels, etc. it might make you sick. If you start cooking at home, it’ll not only be healthier for you and your family, it’ll save you money.
4. STAY Home
My husband and I are total homebodies. By having a natural desire to be home on weekends, we skip expensive entertainment, and find things to do around the house. In our spare time, we play games, read, watch movies, take walks around the neighborhood… and save money.
5. Redefine “FUN”
Look for things to do that are free. If you like to shop or go to the movies for fun, it’s time to start finding NEW things to do that are both fun and free. Hiking with a friend, book clubs, local library events, or reading. Start training yourself to enjoy activities that are affordable. Seriously! Humans are adaptable. It’s possible to recreate yourself by developing a new sense of fun.
6. Find Hobbies that are Productive
Frugal people have skills that produce. Can you crochet? I taught myself in college, with a little help from a friend, and I’m not very artsy. I’m now able to make afghans for my family as gifts. How about picking up gardening. If you find that you enjoy gardening than it’s a double whammy. You’ll be enjoying yourself, while also producing food. Win-win!
7. Watch “How To” Videos on YouTube
Frugal people take classes from YouTube for FREE. You can learn anything with simply an internet connection. Learn to do your own makeup, cut hair, piano or ride a bike. Learn cooking, gardening or sewing – to help you with number 6 (above).
8. Save Your Change
Literally! Don’t throw away that penny. Collect all your change in a jar and dump it into a coin machine. You’ll be surprised how it adds up. I even pick up pennies when I see them on the street. Hey, maybe I’ll get a little good luck, while I’m building my coffee fund.
9. Compare Prices
Shop around for the best price. You should always get at least two or three bids anytime you are looking to get work done on your home or car. Comparison shopping on anything you plan to buy is smart. Shop intentionally, not impulsively. Be thoughtful about your purchases. I often place things in my online cart, and leave them there a few days, to be sure it’s something I really want, and that I’m getting it at the best price.
10. Fix Things
If it breaks, then we do our best to try to repair it. If the lawnmower breaks, we try to fix it, or replace a part. I drink smoothies every day. At least twice a year, my blender has a hiccup. Instead of buying a whole new blender, I simply order a replacement part, and it’s like new again. Rather than just replace a broken car, try getting bids to fix it. It’s often cheaper to repair something, than to replace it.
11. Drive the Same Car Long Term
We literally drive our cars until the wheels fall off. Yes, the wheel on my Subaru Forester did just that. It fell off. Our cars are just worth more to us, than to someone else. If it gets us from point A to point B, it’s a keeper. Until the price of the repair is greater than value, we’ll drive it. To find out how to buy a car with cash, check out my post here.
12. Live in SMALLER Houses
My kids love to watch Tiny Homes, on HGTV. I can’t say that we’ll ever go that small, however our home is fairly small by American standards. We’re a family of six living in a 1,400 square feet home. Our four kids share bedrooms, and in our opinion it helps them learn compromise and empathy for others. Our family also spends a lot of time together, simply due to the size of our home.
13. Buy “USED”
Frugal people shop second hand. With the exception of the one brand new car I bought straight out of college, during my young and dumb days, we have always bought used cars. We buy used clothes and furniture as well. The quality is often basically new at a fraction of the cost.
14. Pack Lunch
“Brown Bag” your lunch. I work full time in a corporate office, and I bring my lunch every day. My husband and our kids do as well. However, when I look around I see many going out to buy lunch most days. That money really adds up.
15. Plan and Make Goals
State a goal, say it out loud, and revisit it often. Our family likes to plan things out into the future. We think of our future selves in almost everything we do. We typically think five to ten years ahead. Goals help to make us all better people. If you know where you want to go, you can calculate how much money you’ll need to achieve it, and start saving for it
16. Budget
Frugal people budget. Not sure how to do that? A budget is basically a plan. You need to tell your money what to do, or else it will… leave. It’s important to build a unique budget for each and every month, at the beginning of the month. That way you’ve decided what to do with the money coming in, before you’ve gotten it.
17. Camp Out
Yup, that’s right. Frugal people go camping. Think of how much less expensive it is to travel if you choose to camp as opposed to stay at a hotel. If you’ve never done it before, I suggest starting out at a local state campsite for a night or two. That way you can figure out which supplies you need. Here are 36 Dollar Tree Camping Hacks and Must Haves.
18. Don’t Smoke! (or Drink)
Smoking costs money. Alcohol and tobacco products are ridiculously expensive. If you add up all the money spent on packs of cigarettes you could have fully funded your kids college 529 accounts. In addition to the impact on your health, it’s just not a great idea.
19. Eat a Plant-Based Diet
I’ve been eating a plant based diet for over two years now. That means I don’t eat meat, dairy, fish or eggs. This not only has been excellent for my health, it’s been excellent for our wallets. Fresh vegetables, especially if you buy locally, beans and rice can all be bought really inexpensively.
20. Limit Subscriptions
Subscription services such as newspapers, magazines, and boxes of specialty products can be awesome – if you use them. Oftentimes, however, these things are on auto pilot and you may be receiving things in the mail that you never even use. Spend some time evaluating the usefulness of your subscriptions, and see if any can be cancelled.
21. Cut Cable
We haven’t had cable in years now. I honestly don’t know anyone who does. If you haven’t cut cable by now – what are you waiting for? We have a HULU subscription for $9.99 a month, and love having shows on demand. We so rarely have time to watch TV, that it’s nice to not have to waste time watching commercials when we do.
22. Cut Your Own Hair (or your kids hair)
When our twins were toddlers, I watched a YouTube video on cutting hair, and have been cutting their hair with clippers ever since. They’re seven now. I don’t personally cut my own hair, but I do the kids. Try it. Don’t want to cut your own? You might find a hair cutting school nearby that will cut your hair very inexpensively.
23. Hang Dry Your Clothes
Over the summer months we try to cut back on our electric bill by hanging our clothes out to dry. It sort of makes me feel a little European, and there’s nothing cuter than cloth diapers out on a line.
24. Use Un-Paper Towels
Skip the paper towels, and use hand towels. We’ve had a basket filled with folded hand towels in our kitchen for years. We use them for napkins and for drying hands. They work great, and they’re reusable. LOVE IT!
25. Drink Water
We have a house rule of NO sodas. Drinking water is healthy, satisfying and FREE. It’s a habit of frugal people because it’s just smart to drink water.
BONUS (26): Cloth Diaper
It just wouldn’t be me to not mention cloth diapers. Skip the toxic disposable diapers, and get your baby into cloth. Here’s my full post on how to get started on Cloth Diapers.
