How To Start Frugal Life

[Boogieboybaxter]

I would like some advice on how to make the transition from overspending to be a very frugal person. What are the most important things to do first. I am new to the frugal life.

[GREENBACK]

There are several things you can do but it might help here to give a bit of a snapshot of your current situation. How much debt do you have? Where is your money going?...etc.

[MonkeyMama]

Being frugal doesn't happen overnight. In general, I'd say the best way to make the transition is to ease into it. Start with a new frugal idea, master it, and move on to more. The possibilities are endless.

Some places to start would be focusing on the bigger items. Immediate results will keep you on course.

Housing - can you cut your housing costs?

Cars - can you cut your vehicle costs?

Latte Factor/Eating Out - Focus on buying groceries and eating in rather than eating out a lot and/or buying things like gourmet coffee often. In this case, you are not denying yourself food or coffee, but just looking at a cheaper way to achieve the same end.

Focusing on these big items can change your life, considerably.

It is hard to give advice without knowing where you can cut back, etc., or without knowing what your current habits are.

I think the approach I would take is to list my current expenses, from largest to smallest. I'd start with the largest and research and brainstorm ideas to cut cost. Over time I'd work my way down the list. It could literally take years to work down that list. But, slow and steady changes to habits stick better than a crash diet. I think starting with the bigger things just helps you to keep motivated - because it is easier to see immediate results.

[justinblake]

If you have been excessive when it comes to spending, the first thing you do is make a list of your expenses. Everything you shell out money for, from your utility bills, insurance, your groceries, your mortgage, your shopping, etc. etc. Start by keeping track of where your money goes. Making a list will help you identify the unnecessary things you pay for. Once you have identified them and once you see how much money you spend on these non-essentials, you'll know what to cut off.

[disneysteve]

I would agree that the first step is identifying the problem. Know where all of your money is going currently and pick out a couple of problem areas to focus on initially. The bigger items will save you the most money, as MonkeyMama mentioned, but they may also be more difficult to address. If you are paying too much in rent or have too large a mortgage, that isn't so easy to change. If, however, you are eating out too much, that is much more simple to fix. If you post your monthly budget, we'd be happy to point out areas that you might want to consider changing.

[marvholly]

Budget Budget Budget

Sit down and figure your absolute necessary expenses: rent/mortgage, utilities, car expenses (loan, insurance, maintenance), home insurance, health insurance & co-pays/other out of pocket expenses, retirement savings (IR, 401K or 403B).

Then add in the wants/needs in priority order: cable/internet/cell phone, groceries & household supplies, clothes, Personal care (toiletries, haircuts, mani/pedi) eating out, vacations, saving for BIG items (house, furniture, kids college....) & entertainment.

See how it all adds up and go from there. What can you change to save? What can you give up?

[Radiance]

It is a journey and you are in the right place!
I did it myself and it has been oh so rewarding!

My first step was to identify what was my relationship with my money... which in turn made me want to have some awareness of what was my money doing for me.

I learned some very important things like

1) The difference between wants and needs.
2) The fact that there is always a frugal way to do anything.
3) The fact that I didnt need to solve all my problems by buying stuff or services.
4) Being frugal is not the same to being cheap.
5) Frugal life is not a life of lack and deprivation, it is actually a life of abundance and prosperity

I also learned a few practical things like:

Creating a budget
Getting and staying out of debt - delicious!
Smart shopping

But it all starts and mainly resides on the mindset, IMO

[snshijuptr]

Set a goal first. Why do you want to be frugal? Get out of debt? Buy a house? Pay off the mortgage? Retire at 50? Several goals can work, just don't overwhelm yourself.

Track all of your expenses. As you do, really examine whether each is a Need or a Want. Needs help you earn money (gasoline, basic transportation), provide food or shelter (groceries, rent, utilities), and keep you healthy (doctors, prescriptions). When Needs become excessive, they become Wants (luxury cars, organic groceries, restaurants, extra rooms, AC when you could open a window and use a fan, expensive health clubs). Other Wants are easier to identify because they are obviously excessive (vacations, concerts, alcohol). I like to aim for 50% of take home pay for Needs, 20% for Wants, and 30% for savings.

In order to reach this goal, slowly adjust your life. Feel comfortable with one thing before moving onto another. You can try:
Moving into more affordable housing
Buying a less expensive car
Cooking at home every weeknight
Bringing your lunch to work everyday
Buying clothes from a thrift store
Using coupons for groceries
Buying grocery staples instead of pre-packed food (dried beans, rice, fresh vegetables)
Shopping around for auto insurance
Carpooling, taking public transportation, or walking
Avoiding shopping for unneeded items
Eating leftovers
Selling high maintenance items
Find ways to save/make money on hobbies
Wait for movies to come out on video and rent them

Look for ideas of ways to save money based on your own expenses. Lots of this involves self-discipline and often a shift in your social life (from bars & clubs to potlucks and movies in).

[MrPolarZero]

Well, self control is probably the biggest thing that you need to have in order to lead a frugal lifestyle. You need to instill on your self the values of being frugal before you can get to go for it.

[marvholly]

Also, remember there is a VAST difference between frugal and cheap:

Cheap is NEVER meeting friends/family for drinks/dinner
Frugal is limiting where, how often & amount you spend to do this.

[snshijuptr]

Also, remember there is a VAST difference between frugal and cheap:

Cheap is NEVER meeting friends/family for drinks/dinner
Frugal is limiting where, how often & amount you spend to do this.

Oooo this sounds like a good new thread.

[moneyclass]

Entertainment right off the back is a big saver/being frugal. try staying in the house for a couple weekends and see how much you save. watch some movies and etc.

[AmySL]

Completely with you on that one!

[choo choo charlie]

Marry a frugal person.

[Frugal]

You could start learning to budget for groceries. This is a basic expense each of us has every week, or every other week. Learn to shop and scour sales ads, compare prices, price match at stores like Walmart and others, and also learn to use COUPONS. Although some people think they are a waste of time, they sure save me a lot of money, and I still manage to get some items for free (recently, some food and also some shaving razors and floss and toothbrushes). Every little bit helps. If we start saving money in the small things, then we can move up to the big items like car or house.