Living Frugally

Living Frugally

Saving money does not mean depriving yourself. Here are some tips to help you save by making a few simple changes to your lifestyle.

Almost all of us wish we could have more money. This could be for a variety of reasons right from saving up for a holiday to buying a new gadget. Or it could simply be for investment purposes. We usually equate saving money with getting a job with a higher paycheck. However, the easiest way to save money is by altering your lifestyle.

Saving money does not mean you should be cheap or avoid spending on essential needs. Living frugally largely means that you understand the value of your money and try to make sure it is not wasted on useless expenditures. Take a little time out and examine your current living habits to see where a change is possible.

Avoid Branded Items

When you buy a branded product, some amount of your money is "reserved" for the brand. This is why branded products always cost more. The brand name is supposed to guarantee good quality. However, what most of us do not realise is that brand name products are often manufactured by factories that are not owned or run by the company with the brand name. Depending on the understanding they have, many of these factories may also sell the same goods in the open market without any brand name on them. These 'non-branded' items are of the same quality but will cost much lesser than their branded counterparts.

The first thing is to determine if you actually need to buy a branded product. If you are looking to buy a pair of formal shoes, a branded pair might be a good investment. This is because branded products will usually give you a guarantee of at least a year, which is something non branded goods do not offer. However, if you tend to wear shoes for only as long as they are in fashion or for a few months, then you do not really need your shoes to be branded. The same thing goes for clothes. This is especially true for children's clothes. Your toddler does not care if he is wearing a branded shirt. In addition, he will outgrow his clothes in a matter of months. You will save a fairly large sum if you cut down on brand name spending.

This principle can also be applied to your grocery shopping. Nowadays, manystores keep local brands of groceries. Some stores actually manufacture their own products, usually with the aid of local small scale industries. These products are of the same or better quality than commercial brands. Moreover, they are also hygienically prepared and packaged. When you try out these items, you will most likely find that there is no noticeable difference in the taste. If this is the case, why pay extra just for the fancy packaging?

Plan Purchases

It is a natural tendency to be swayed by opinions and be lured to buy the latest gadgets. Advertisements are a powerful tool. If you see an advertisement constantly repeated, some part of your mind will retain its message. Advertisements often entice you to buy items you do not really need.

If you are considering buying a particular gadget, ask yourself whether you really need it. If the answer is yes, the next question is whether you can wait for a while before making your purchase. Gadgets like the latest mobile phone, MP3 playeretc. are usually extremely expensive when they are first introduced into the market. Their prices tend to drop within a span of few months as newer models replace their top position in the market.

Planning also works for holidays. Plane tickets typically cost more depending on when they are booked. The closer the departure date, higher the price of tickets. If you plan for a holiday, you can purchase the tickets well in advance. Many airlines offer huge discounts on tickets if they are purchased at least one month before the departure date. This will also make it easier for you to get the seats of your choice.

Living frugally is not as difficult as it sounds and does not involve making any major sacrifices. Remember that what you save today will help you live the life you want tomorrow.