FRUGAL: you see the value in a dollar and look for ways to maximize it whenever possible.
Save on Your Commute
If you live in an area with a good public transportation system, it may not be worthwhile to buy a car. The same may be true if you work at home or otherwise live within walking distance of places such as the grocery store of the doctor’s office.
Therefore, it may make more sense to use a rideshare service or simply borrow a friend’s car for the afternoon if you need to make a trip out of town. It may also be less expensive to take a bus or a train for those infrequent long trips.
This principle may work with other objects that you may need or use on an infrequent or temporary basis. There are websites where people are literally giving away things that they don’t want or need for free. This is a great way to acquire a book, toys for your kids or power tools to help you with your bathroom remodel without spending more money than necessary.
Buy Goods That Will Last for a Long Time
If you do choose to buy a car, a house or any other big-ticket item, you should look for something that will last for as long as you want or need to keep it. A quality car can last for up to 200,000 miles with proper maintenance while a computer can meet your basic needs for up to a decade or more if taken care of right.
To save money on maintenance costs, attempt to do the work yourself if you have the experience and time to do it right. For instance, you may want to paint your home instead of having someone else do it or clean the gutters instead of paying a professional. You may be able to change your own oil or make basic engine repairs to your vehicle instead of having a mechanic do it.
Another great way to save on maintenance costs is to buy products with a quality warranty. In some cases, you may be given a lifetime warranty, which means you may never need to spend money to repair or replace that product for as long as you live. That helps to maximize the value that you get from the money spent on a particular item.
Learn to Make the Most of Coupons
It is possible that a retailer will double coupons that are less than 99 cents in value. It is also possible that a manufacturer and a retailer will have coupons for the same item that are good at the same time. When done right, you can get an item either for free or much less than full retail.
The best part is that you don’t have to be an extreme coupon cutter or spend hours looking for discounts. A few minutes on the internet or downloading an app to your phone could be enough to highlight deals or specials offered by local or national retailers. In some cases, discounts may be available for items bought online, which makes for a convenient and affordable shopping experience.
Pay Down Debts That Have High Interest Rates
While saving for retirement or putting money in a personal investment portfolio are good ways to secure your financial future, paying down debt should be a top priority. This is especially true if you have student loan or credit card debt. Student loan debt is rarely discharged or forgiven, and credit cards come with average interest rates of 13-20 percent.
If you can’t pay your balance in full in a timely manner, it may be worth looking into a balance transfer or to consolidate debt with a personal loan. The main advantage is that personal loans generally come with lower interest rates compared to credit cards. For help with student loan debt, it may be a good idea to talk to the company servicing your loan to determine if there are ways to lower your interest rate or have any portion of your debt forgiven.
Learn How to Negotiate
Learning how to negotiate can help you save money on a variety of goods and services that you need or want. For instance, negotiating with your doctor may help lower the price that he or she will charge for a checkup or to perform a procedure. Depending on your overall health, this could allow you to forego an insurance policy and the premiums that come with it.
Even if the financial savings per transaction are small, the money that you save can be put into an investment portfolio or into an emergency fund. Both of these things will help you avoid going into debt or sacrificing your ability to live a relatively comfortable lifestyle in retirement.
Living frugal doesn’t mean that you have to give up creature comforts or dramatically alter your lifestyle. All it means is that you look for ways to save money whenever it is practical to do so. Fortunately, there are many ways to cut costs or get more for each dollar that you spend without having to resort to extreme measures.
