2023-09-13T00:00:00.000000Z
Currently, the trend of the frugal living lifestyle is being widely discussed by the public, especially amid increasingly high selling prices for goods such as fashion, gadgets, vehicles, and primary needs such as houses. It is believed that the frugal living lifestyle can be an alternative solution amidst these conditions, especially to achieve the financial goals of people who do it.
So, what is frugal living, how to live it, and what are the benefits? You can read and find the answer in this article.
What is frugal living?
Frugal living is a living concept that focuses on financial priorities and can manage expenses. In a frugal living, a person must have a life vision and mission, as well as dreams and goals for the future. This is because they must understand what their financial goals are and how to achieve these financial goals.
The frugal lifestyle is also often misinterpreted as a stingy lifestyle. The concept of frugal living is different from stingy. The frugal living lifestyle is generally accompanied by careful spending of money, namely needing and being able to. For example, if you want to buy the latest gadget, you must understand whether it is really needed and can afford it.
Frugal living tips
Here are some tips for running frugal living that you can apply when starting a frugal living lifestyle.
Determine financial goals
To start a frugal living lifestyle, you need first to determine the financial goals you want to achieve, for example, wedding savings, education savings, emergency funds, and buying a vehicle and a house. By having clear financial goals, you will be able to live a frugal living lifestyle seriously.
Analyze needs and wants
After understanding your financial goals, you must analyze your needs and desires. This is important for determining the right allocation of monthly funds for your expenses.
Make a financial plan
The next tip is that when you can analyze your needs and desires, you must make a financial plan. This financial plan will guide and control your expenses, so you don't get trapped in a consumer lifestyle.
Don't be easily influenced by trends
Currently, new products are appearing very quickly, which makes shopping trends change very quickly because people tend to be afraid of missing out on new emerging products, so they are trapped in consumerist lifestyle habits.
When living a frugal lifestyle, you are advised to avoid a consumptive lifestyle due to being influenced by shopping trends because this can make your spending out of control.
Compare prices and take advantage of promotions
When living a frugal lifestyle, you also need to be diligent in researching prices from one seller to another to get cheaper prices and the quality goods you need.
You can also take advantage of discounts or promos at supermarkets, minimarkets, or marketplaces to shop for daily, weekly, or monthly needs to save on expenses.
Benefits of frugal living
There are several benefits of frugal living that you can feel when living it, such as:
Life becomes more economical
The first benefit of frugal living is that you can have a more frugal living lifestyle because you will learn to reduce your impulsive spending. Apart from that, you will also tend to choose quality goods, even though they are expensive but durable.
As previously explained, frugal living is different from being stingy and spending on cheap things. The concept of frugal living also prioritizes the quality of the goods purchased. It is better to buy more expensive goods than to keep buying cheap goods over and over again because they are damaged. If you do math, this is certainly more economical.
Achieve financial goals
The frugal living lifestyle also helps you achieve various financial goals such as paying off debt, saving for an emergency fund, investing, getting married, buying a vehicle, and buying a house.
Have future savings
If you live a frugal lifestyle, you will have more money to save to prepare for your future. That way, you can face your future more calmly because you already have sufficient savings.
To prepare for your future, you can also open a MAS Savings account at Bank MAS with the advantages of no minimum initial deposit, free inter-bank transfer fees, and free admin fees for cash withdrawals at all network ATMs.
Financial independence
The frugal lifestyle concept will help you achieve financial freedom. You can reduce consumptive spending and divert it to investment in assets or capital, which can later help generate passive income.
Ease financial stress
The final benefit of frugal living is that it helps relieve your financial pressure due to debt or consumptive behavior from an excessive lifestyle. You don't need to force a lifestyle beyond your means to fulfill your prestige, this will only create financial pressure and cause stress for you.
Sources:
 - Shopify Australia)