Financial Matters: How to be Frugal

Frugal: I have a love-hate relationship with the word. Through the years, it had been my euphemism for cheap (while taking good quality into account). And now that I am finally striving to be an independent and responsible young adult, I felt the need to piece together a more frugal lifestyle that my finances can afford.

[The daunting budget board. And yes, we are drowning in receipts]

What makes it difficult is how in the past few years of living in the Northern American region, I had assimilated into a culture with a consumerist mindset. I had gone from buying clothes because I actually need clothes to buying and thinking I need clothes because I can and everything on the mannequins are so pretty! No, I am not the most fashion savvy person you'll ever meet--not even remotely. However, having had a decent amount of disposable income made me unlearn how to be the cheap and frugal person that I was raised to be. I once actually said: "I am having consumerism withdrawals!" because I couldn't shake off the desire to buy something. 

My plan of action: relearn the frugal lifestyle. Easier said than done! So figured I would make a list of ideas on how I can actually make this possible. Here it goes(in no particular order whatsoever):

+ Make a budget plan. It's always important to know how much money we earn vs. how much we spend. Make a list of monthly bills (along with the due dates) and set a monthly budget for every spending (i.e. groceries, dining out, clothing, etc) and then add them up. Make sure the total is smaller than how much you make each month! This topic will be revisited and discussed further.

+ Be almost-too-disgustingly-cheap. Now this is something I do all the time when grocery shopping. Check grocery fliers for sales & coupons, compare prices and make a list--try not to go to the store without a list. Before the advent of eCoupons and member prices, I actually had a little accordion file with coupons arranged by expiration dates! 

+ DIY (do-it-yourself). This is something I had been trying to do for a while now. Whenever I see something I am tempted to buy, I try to think twice and ask myself: can I make this myself for a lot less? If the answer is yes--no matter how uncertain--I make myself walk away while making a mental note to attempt to do or make it myself.

+ Learn a hobby. I find that whenever I keep busy, I am less likely to feel the need to buy something (unless it's a cool hobby-related tool, which tragically happens more often than I would like, but that's beside the point). I'm trying to get into home improvement and sewing!

+ Try the thriftstore! Something I had been planning on doing. And yes, the first time I thought about it, I can't help but feel a certain degree of "eek factor" wearing or using something that was once somebody else's--somebody I don't know, no less! Then again, aren't most of us willing to pay ridiculous amounts of money for real vintage? Same difference! As long as it isn't underwear :)

+ Cook! Try to avoid packaged and/or convenience food. The less processed something is, the cheaper it sells for. It isn't always ideal when you're busy (or just lazy), and sometimes it's so tempting to just pop a heat-and-serve into the microwave. How I've been trying to do it: I'd set cooking days where I cook a lot and throw it in the freezer.

+ Try open source software. It's crazy how a lot of the software we "need" can be almost too ridiculously priced. We've been trained to think that popular choice equals the best choice. This isn't always true! For example, if you need Microsoft Office, try OpenOffice. Can't afford Photoshop? Try GIMPshop! The interface (i.e. where which buttons are placed, etc.) might be a bit different and might take some getting used to, but generally the functionality is at par. Besides, if it means saving a few hundred bucks, why not give it a try? Here is a list of open source software.

+ Have multiple savings accounts, not credit cards. I understand the temptation of swiping away without worry or care. However, I have always been ultra cautious with credit cards because my mom warned me one too many times, not to spend money I don't already have. One credit card for emergencies (or rewards!) with a sensible credit limit (and interest rate!) is good. Then try to open a few savings accounts: maybe one for short term i.e. saving for a vacation or a new computer and another for long term goals like buying a home! Try to look into high interest savings accounts and tax-free savings. Know nothing about the different savings account options available for you? 

+ Invest wisely. Yes, saving money is good. What is better than saving money though, is investing it wisely. This doesn't just mean opening investment accounts. It applies to everything you purchase or spend your money on. For example, invest on yourself. Learn something new and/ or something you might need to give you an edge when applying for a new job. Study a new language. While instant gratification is tempting, we eventually have to learn the rewards of thinking long-term.

via Money As You Grow

+ Time is money. Sometimes, efforts on saving money involve spending some time. Evaluate and balance the money vs. time spent. For example, above I mentioned DIY and cooking or avoiding packaged food. This works for me because I have a lot of time in my hands, but little money to spend. I can afford to spend time on these things to save money. However, some of us can afford to shell out a few cents, but cannot afford to lose extra time. 

Although it might not be the most pleasant experience at first, it's good to re-evaluate our finances. After all, money does not come easy for most of us. Don't go all-out cheap though! For one, always keep a balance between the actual cost and the quality. Also, it is important NOT to deprive yourself. From experience, the more I make a conscious effort not to spend on anything for a long period of time, the more I end up impulse buying later on. Give in to little treats. Reward yourself once in a while for being good with your money.

This is the first installment to the Financial Matters series. Any ideas on saving and spending wisely? Comment below!