Live differently! Employ habits that allow you to live on less while enjoying more of your time. By following these habits, you can enjoy the freedom of being able to live without the crushing stress of debt and the need to keep up with consumer trends.
Habit #1: Develop emergency savings
If there is one thing that can send your finances into a tailspin, it’s an unexpected expense. This can be anything from a car repair to a hospital bill or a speeding ticket. Develop an emergency savings plan that allows you to plan for these expenses so that they don’t wreck the budget.
Habit #2: Use free resources
Instead of going out to the movies, visit the local library and borrow DVDs. Take advantage of free days at the local museum, trips to parks and children’s programs at the library. Attend community events. Search pennysaverplus.com’s Free item section for good items the owners no longer need. Join co-ops that allow you to share skills and take advantage of the free skills of others.
Habit #3: Think long-term when it comes to finances
Try your best to avoid the “paycheck to paycheck” lifestyle that promotes short-term thinking over long-range planning. Think of your income on a macro level, and plan you major purchases by saving over time. Develop a cushion of funds that allows you to save, invest and spend wisely.
Habit #4: Have hobbies that are productive
Engage in hobbies that are not only enjoyable, but profitable. Learn to sew and sell your products online. Enjoy cooking? Then take on small catering jobs on the weekends. Love to read? Use your love of knowledge to start a money-making blog or e-book. Frugal people understand that there endless sources of income, and they develop their hobbies to bring in as much money as possible.
Habit #5: Don’t find joy in “things”
While many people feel accomplished when they buy a new cell phone, designer bag or luxury car, frugal people find these things a hindrance to their free lifestyles. They engage in continuing education, self-improvement and new experiences as a way to find joy in life. They are also more likely to engage in volunteer work in order to find fulfillment in life.
Habit #6: Avoid debt when possible
Nobody likes debt. Buy used cars and repair them instead of buying new one. Avoid credit cards and excess spending. Try to own your home outright. When you do get mortgages, obtain them for well below what you’re qualified for. Pay off your debts early to avoid interest payments and fees.
Habit #7: Raise frugal children
Frugal people pass on their habits to their children. They teach their children to save their money and to develop life-long skills that can be used to earn money. They do not buy their children designer clothing or gadgets but instead immerse them in enriching activities that tend to be free.
Developing Multiple Sources of Income
In addition to saving money, frugal people often develop multiple streams of income. They may run an online auction business, sell used books and clothing on Amazon or take in roomers to fill empty rooms in their homes. They babysit, walk dogs, pick up laundry and sell baked goods. Some take on freelance writing jobs, mystery shopping assignments and sit on virtual juries. Frugal people understand the value of having more than one source of income and this habit allows them to develop a comfortable savings cushion as well.
When it comes to managing your personal finances and saving money, make these habits your own personal quest. It literally “pays” to change the way you think about earning and saving money.
