Melissa Blevins* shows how living frugally just means making small tweaks in our lifestyles to ensure stability and comfort.
Photo: Gerd Altmann
Frugal people don’t usually broadcast to the world that they’re all about the budget.
They simply make small tweaks in their everyday life to ensure stability and comfort.
Extreme frugal living isn’t necessary — you don’t have to sell everything you own and live off the grid.
But here is a list of things frugal people don’t usually do in their everyday lives.
Overdraw their bank account
Because most frugal people operate on a zero-based budget, they can’t afford to overdraw their accounts.
A zero-based budget is when you calculate income less all bills and expenses and put all of your extra income either towards savings or paying off debt.
They refuse to compromise their dietary health to save money
Instead, they choose to eat healthier greens and legumes and keep meat to a minimum (as a splurge).
Carry credit card balances
Frugal people do not like to use credit cards as part of their everyday lifestyle.
While some have the discipline to pay the cards off every month in full, others choose to stay far away from credit.
Self-awareness plays a big role in a person’s success with credit cards.
If you know you’re a spender who has been in debt for years, it’s probably a good time to cut up the cards and pay them off once and for all.
Keep up with the Joneses
Frugal folks simply don’t care about what the Joneses are doing.
The fact that Karen and Johnny bought a brand new camper or boat doesn’t phase the frugal because their number-one goal is taking care of themselves and their family and living on the bare minimum.
That means things like exotic cars and “toys” only mean future setbacks.
Hang out with losers
I love the Jim Rohn quote, “You are the average of the five people you spend the most time with.”
At different times in my life, I’ve had to let go of toxic people because I realised they were not encouraging me to live a better life or to be a better person.
Budget-conscious people are careful who they hang out with.
When you’re frugal and your friends are spenders, they tend to be judgemental and condescending.
That’s why most frugal people hang out with like-minded friends.
Take fancy holidays
Now listen. I’m all for a fun getaway.
Some frugal people scrimp and save everywhere they can so they can take holidays with loved ones.
If that’s your jam, so be it.
But self-made millionaires are urging millennials to wait to travel.
Forget to price compare
When shopping for gifts, frugal people tend to search high and low for the best prices and free upgrades they can find.
Fail to contribute to super or other retirement options
Frugal people know the value of saving for the future by investing in retirement, such as through their superannuation.
They don’t even consider the idea of not having a sufficient life insurance policy in place
Dave Ramsey, financial radio host and debt payoff strategist, recommends having a term life insurance policy valued at eight to 10 times your annual salary.
The cost of replacing you and all that you do would be astronomical.
That’s why it’s so important to protect your family.
Waste food
Frugal people are known to eat leftovers until they’re sick and tired of them.
They want to use all of their stores until they need to be replenished.
Fail to keep a stockpile
Frugal people keep an inventory of what they have, and as part of their zero-based budget, they stock up when it’s on sale.
Pay full price
Frugal people love negotiating a deal, and they refuse to pay full price when cash is king!
Whether buying a car, a house, or a piece of secondhand furniture, they enjoy the art of negotiation.
And they certainly don’t like paying $5 for a cup of coffee!
Forget to shop car and homeowners’ insurance at least annually
This is another big one.
Auto and homeowners’ insurance can go up even if you haven’t had an accident or claim.
Shop around at least once a year to ensure you’re receiving the best rates for the best coverage.
Also, be sure to compare apples with apples.
For example, one company may have lower rates on a six-month policy, but they may be quoting lower coverage amounts.
Spend emotionally
Emotional spending can wreak havoc on your budget and your life if you aren’t careful.
You can be the most disciplined person under normal circumstances, but when your whole world turns upside down, all of that structure goes out the window.
Frugal people are smart about their money, and while they’re not exempt from disaster, they usually aren’t emotional spenders.
Being frugal is a great way to ensure a better life in the future.
Many millionaires are frugal and budget-conscious, and they adopt the philosophy that even though they have the money, that doesn’t mean it should be spent on frivolous purchases.
* Melissa Blevins is a personal finance and lifestyle blogger. She tweets at @perfecthangover and her website is perfectionhangover.com.
This article first appeared at perfectionhangover.com.
