The most important part of being frugal is making a budget. You need to know exactly where your money is going so you can save money.
Being frugal is all about spending less and saving money. Frugal is being responsible and living within your means and save money. Once you start making a monthly budget you will be very surprised as to where you are wasting your money.
How to make a Budget
You can either get a Budget Book which is a hand written journal, you can use an Excel spreadsheet on your computer or simply take a notebook and start making columns.
- Electric, Water, Gas - all of your basic monthly bills
- Gas for the car
- Maintenance for the car include how many miles driven each month.
- Eating Out
- Monthly Salary (actually this should be the first one)
- Monthly Savings
You get the idea. For everything you spend money on save all of your receipts and record what you are spending on each category in your budget book.
Add up each column and subtract the total of the columns from your monthly salary. What did you discover? Are you spending too much of your monthly salary and can not save any money?
Now look at each column and the amount spent on each column. Where can you cut back? Entertainment, clothing, gas, groceries; especially if your groceries are mainly comprised of junk food and not real food.
If you take all the money you have spent on fast food and eating out for your daily lunches by being frugal and making your own breakfast and lunches to take to work you will be saving money.
It is easy to make your own breakfast and lunch at home. By not eating out you will be saving money which can be put in a savings account. This has now eliminated one column in your budget. You can now purchase real food that you can make ahead at home. Cooking is not difficult.
Write down all of your spending every month in your budget book. Make wise decisions on where you can cut back on your monthly spending. Compare your budget from month to month and stick to your changes. You will be surprised at how much money is being wasted on non-essential items.
What are your thoughts? Where can you save each month?
(c) 2017 Michelle Sargent All Rights Reserved