21 Things Frugal People Do
Creating wealth is a mindset. It involves discipline and the ability to pass on instant gratification for the long term game. Not surprisingly, many self-made first generation millionaires have one thing in common: how frugal they can be.
Here are 21 things frugal people do.
1. Hay Comida en la casa
Yup, our moms weren’t playing when gave us this advice growing up. Meal prepping can save a lot of money.
Download this free iPhone wallpaper as reminder.
2. BYOL (Bring your own lunch)
Many people eat out every day at work… that’s $300 on average a month. It’s an expensive habit. being a little frugal here can go a long way.
3. Buy Used
Why pay full price when you can grab things at a fraction of the cost?
This is great for furnishing your home or office, or shopping for accessories and clothes.
Create resources to buy used:
4. Negotiate
Not negotiating your salary in your first job can cost you. Specifically, it’s been reported that women who don’t negotiate their salary are leaving anywhere between $1 million and $1.5 million on the table in lost earnings over their lifetime!
Similarly, not negotiating a car purchase or APR on loans can also be costly in the lifetime of the loan.
5. Have Clear boundaries
Have clear boundaries with friends and family.
6. Ensure proper coverage on insurance
Many people are over paying for coverage that they don’t need. Review your policy and ensure that the coverage you have makes sense for you.
7. Invest in retirement
Don’t leave money on the table! If your company offers a match, make sure to be investing at least the amount required for a company match. Many millionaires invest their money for the long haul.
8. budget Monthly
Do you have a good idea of where your money goes? You should. You should also pay yourself first. Ready to make some serious budget moves? I created the ultimate 12 month budget tracker if you’re ready to slay your budget.
9. budget Annually
Do you have a budget that clearly covers annual costs like car maintenance, car registration, etc.? Planning for annual costs can help you from dipping into your emergency fund. Need an annual budget? I got you my friend. Get your 12 month budget tracker here.
10. Track expenses/ Self-Audits
Auditing monthly expenses helps check yourself while ensuring you are on track for your financial goals.
11. Doesn’t buy into the hype on new consumer products
If your iPhone 8 works fine, there’s no reason to upgrade it – even for that new iPhone product.
12. Don’t carry large balances on credit cards
Credit card debt can really kill your vibe and your financial prowess. The pay yourself first method could really help here.
13. Fix things Yourself
Got some things that need repair? Chances are, there’s a YouTube video to help you fix it.
14. buy off brand
Como dice mi mama, lo que te venden es la marca.
15. have hobbies that add value
Have hobbies that add value to your life by increasing your holistic health. Examples: Gardening, plants, hiking, camping, going on walks, drawing, painting, reading, book clubs with friends, a martial art (because why not).
16. Have high yield savings accounts
Just open one. Trust me, you’ll be happy you did. Here is why you should open a high yield savings account and also what to look for in a high yield savings account.
17. Have a fully funded emergency fund
Because when it rains, it pours. But if you have a emergency fund, it will help alleviate the financial stress of emergencies.
18. Growth Mindset
There is always something new to learn. Got no debt? Dope, are you investing into retirement? Do you know your expense ratios for your retirement account? Is your portfolio well balanced? Do you invest outside of your retirement account?
19. Clear distinctions between “needs” and “wants”
Having clear definitions between “needs” and “wants”.
“Needs” are things that cannot be avoided. For example:
- Rent
- Utilities
- Groceries
- Car insurance/ Metro card
- Gas money
- Internet
- Phone Bill
“Wants” are things we can live without. For example:
- Netflix
- Disney+
- HBO Max
- Shopping
- Eating out
- Manicure/Pedicure
- Any Sephora purchase lol
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20. Don’t have lots of subscriptions
Subscriptions promote more unnecessary spending. What value is it adding to your life?
21. Live Below their Means
Many frugal people live well below their means, some as low as under 50% of their income. This allows them to invest heavily into retirement or other investment accounts.
Being frugal or financially responsible doesn’t mean you get to have no fun. It means that you don’t give in to instant gratification over your long-term personal finance goals. It does take discipline and having a strong understanding of your life goals.
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