I think we all want to achieve what we consider financial success. Who really wants to spend their entire lives stressing about money, right? Today I want to share with you some frugal ways to eliminate waste in your life.
The key to eliminating waste starts with your mindset. What are your thoughts about money? Do you value it? Do you know how to manage it wisely on a consistent daily basis? Do you currently have a budget so that you spend less than you make?
Did you know that the best way to tell what you truly value in life is by looking at your bank account and spending habits? Your bank statement won’t lie, and it will quickly paint a picture of where your money is being spent on a daily basis.
This article is going to show you some effective ways to eliminate waste in your life and ensure your bank account lines up with the things you value in your life.
Make a Clear Difference between Wants and Needs
I am sure you have heard this before but has it really sank in? This is the first thing that you need to do, so you can live in the frugal lifestyle. You have to be able to differentiate between want and need. You need to be able to classify all of your daily needs, in order to eliminate waste in your life. I do this with a tracking software called YNAB – You Need a Budget.
Be Waste Conscious
If you want to eliminate waste you have to be waste conscious. My suggestion is to carry a notebook and keep a record of every penny you spend for an entire week. By doing this you will do a couple of things:
(1) You will learn just how much down to the penny you are spending and if those items are wants and needs and
(2) You will learn what triggers some of these waste reactions in your life so that you can hopefully make changes and create a new financial path and eliminate bad financial habits of spending uncontrollably.
Make a List and Always Know What you Plan to Purchase
If you want to do something that will have a huge impact right away, make it a habit to never shop without a list. I noticed from comparing 2013 to 2014 that I saved over $2600 by using this very simple technique.
Your list may not be perfect but at least it will give you a guideline of what you want to purchase, rather than going down each aisle in the store just randomly throwing all types of items in your basket. Trust me – It works!
Use only Cash or a Debit Card
Many financial experts recommend their clients to stop using credit cards. I must say from experience I feel the same way and give the same advice time and time again. Even if you have a great interest rate on your credit card you are paying to use someone else money.
If your intent for using a credit card is to build up your credit, you can easily do that my making timely rent/mortgage payments, car loans, retailer charge card payments, and credit builder loans just to name a few.
Using a credit card in my opinion is not the way to go if you want to be frugal and save money. What I have learned is there is usually a disconnect about how much you are spending and what you can afford when you use plastic vs if you have to use cash or a debit card that is connected to your bank.
When I make a purchase with my bank card I get a text right away of my balance and this truly keeps me in check and facing reality of exactly how much money I have available. Try it!
These are my frugal ways to eliminate waste in your life. I hope you have found them useful. What are some of your tips you would like to share below?