You only have to watch or read the news to know that hard financial times are ahead for many of us. But this is where frugality comes into its own – when the proverbial hits the fan! Here are my tips on how to be frugal.
Developing frugal habits and being financially prudent during good times will hold you in good stead when your money situation looks less stable. But if you tend to hide your head in the sand in regard to your finances, it’s never too late to get them in shape.
Here are my suggestions of ways to use frugality to help you through any crises you face.
How to be frugal: first steps
1# Write a budget
The foundation of frugality is a clear budget. I find a budget book* helpful, but you can use an Excel spreadsheet, a piece of paper or a budgeting app.
The important thing is that you know what money is coming in each month, and what your fixed expenses are. Then you can decide how much you can afford to spend on variable expenses, such as food, clothing and entertainment, and how much you can afford to save.
2# Create a plan to pay off debt
This SHTF situation is precisely why I hate being in debt. Owing a lot of money when the economy is doing badly, prices are rising and job security is weak is a hugely stressful situation to be in.
If you are struggling to keep up with debt repayments, take some advice from the CAB or Money Helper. Don’t stick your head in the sand. There are some effective actions you can take to get on top of debt.
3# Plan your meals
Your grocery bill is often an easy place to start when you need to save money. We waste so much food, and often have cupboards crammed full of ingredients yet still can’t think what to eat.
A simple way to save money is to start to plan meals, using up what you have first, especially any fresh produce. Then plan a suitable dinner for each day of the week, bearing in mind the time you will have to prepare it. Don’t forget to plan in to use up any leftovers, and think about lunches, breakfasts and snacks too.
Write a shopping list as you go to ensure you have all that you need to make the meals on your plan.
I have more information on meal planning in this post. Find frugal recipe inspiration in my Frugal Food section, or check out this post on the best frugal food blogs.
4# Get better deals on everything
As you will have examined your outgoings when you made your budget, there may be obvious places to save money by doing some comparisons of utilities, broadband, phone bills, insurances, etc. Even if you don’t want to change your providers, the threat of it will ensure they give you a better price. Don’t be afraid to haggle.
If you need to make a purchase, shop around. Get the best possible price on anything you buy.
5# Cut anything that’s not essential
This is also a good time to cut out inessential spending. You can be as brutal as your budget requires. What you cut will depend on your financial circumstances and your current spending habits.
For example, there may be regular payments you make that you could consider either cutting altogether or reducing. Obviously, if you can budget for them and can still afford to pay them, keep those that are important to you. It’s unlikely that total deprivation will help with your money motivation.
- Gym and sports club memberships
- Cable or satellite TV packages
- Magazine or book subscriptions
- Audio book subscriptions
- Kids activities (they won’t be neglected if they don’t do an activity every night…)
- Food kit subscriptions
- Makeup subscription boxes
- Paid apps
There are more – your bank statement will reveal yours. Make sure you get rid of the ones you rarely use.
6# Stop spending
Not spending when you have been used to buying whatever you want can be a challenge. I wrote about how to develop the right mindset in this post.
I find it helps to avoid temptation, to have a written budget and to have clear goals around my money.
7# Do as your granny did
A recent popular YouTube post was Things our Grannies Wouldn’t have Bought.
I find it really helps to simplify my spending and my life to revert back mentally to my childhood. As a child of the 1960s, I am old enough to know that credit wasn’t easy to get so people borrowed less and tended to live within their means. There wasn’t the choice of products and services to choose from. Our grandparents and great grandparents didn’t miss what they had never even contemplated!
There are so many things our recent ancestors would not have considered needs that we know do, so it may pay you to consider this next time you ‘need’ something.
8# Don’t panic
The media tends towards catastrophising when there are any concerning events. If you watch or read too much news, it is easy to get caught up with the prophets of doom and to panic about the rising cost of living.
There is a fine line between staying informed and immersing yourself in negative news stories. I limit myself to watching the news once a day tops, and sometimes I prefer to listen or read it instead. If you focus on solutions and have a plan, tough financial times are easier to overcome.
You will find out more about how to be frugal once you get started. Take your first step and take control of your finances.
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