Sunday, May 17, 2015

A Guide About How To Be Frugal

By Tammie Caldwell


In order to be frugal, its really important for you to understand what it really means. The basics of frugality is to have a clear idea about what your 'wants' are and what you really 'need' to have. There are no right or wrong ways when it comes to how to be frugal but there are a few decisions that you have to make in a wise manner.

Many people take the term frugality in the wrong sense. They start thinking that they have to save every single penny no matter how they do it. They think they are required to decrease their spending limits. In actuality frugality involves the concept of saving money but in a clever way.

For instance, if your car is broken and new need spare parts for it, you won't be better off if you buy second hand quality spare parts even if you have the money to buy the new parts. You will be endangering your life and your passengers at the same time. The safety of your car will be at risk.

Same applies to a person who buys a bottle of shampoo and never uses it because if he uses it he'll have to buy a new one. These are just petty ways of saving money and does not involve frugality in any sense whatsoever.

The first rule of being frugal is to set yourself a specific amount of budget for each week or month, whatever you prefer. Always cap your spending so that you know exactly how much money you have for spending and never go overboard that capped spending. At the same time, its important to allocate a sensible amount of budget never make your budget too small otherwise you will find it hard to cater all the expenses.

Each individual's circumstances vary from one another and everybody needs to manage their own monetary circumstances. A few individuals have a great deal of extra cash close by, while others think that it hard to meet their essential needs. Taking into account your money related approaching, you need to think of a financial plan so you can spend your cash shrewdly.

If a person gets familiar with the whole concept of his wants and his needs, then he is able to deal with his spending in a prioritized way. For example, if an individual really desires to buy a sports car and he also has some spare money. At the same time, his house needs a bit of repairing, then he has to prioritize what he should really do and the wise decision is to repair the house as it will benefit him in the long run as compared to buying a car.

Its important for you to stick to your plan and never deviate from it because there are a lot of temptations out there which would force you to spend lavishly. You might have the means to do so, but you should always ask yourself the question that whether you really need to make such expenses and if they would benefit you in any way or not. Frugality can be a good thing only if it is done within the specified limits.




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