So, you want to be frugal but not sure how to get started.
Living a frugal lifestyle means that you have no debt; you have money in the bank in case there is an emergency; and you have money saved for retirement. You are acting in a financially responsible way. Not wasting money. Not being extravagant. You buy only things that you need; you make smart purchases.
Of course, this is the end goal of living a frugal life. However, you can’t just decide that you want to be frugal and magically you have no debt and a full bank account. This is a process. Everyone that is frugal is somewhere along this spectrum from deep in debt to financially free. So, how do you get started? Here are the basic steps that you need to take to live a frugal life and start getting your financial life in order.
Steps to Being Frugal
- Figure out where your money is going. What are you spending your money on?
- Plan your spending. Create a budget.
- Track your spending. Make sure you are on plan.
- Spend less money than you make.
- Set up an emergency fund.
- Pay off your debt.
- Save for bigger expenses and retirement.
Looks simple, right.
What kind of person is a frugal person? The basics of being frugal.
- Spend less than you earn.
- Get out of debt.
- Stay out of debt.
- If you want to buy something, save for it first.
- Take care of what you have.
Keep checking out the rest of this site for more ideas and concrete examples on how to be frugal.