15 Frugal Tips on Saving Money!
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For many people, especially seniors who have already entered their retirement years, living on a fixed income is an everyday struggle.
As a matter of fact, the Global AgeWatch Index from 2015 found that there is an alarmingly high rate of poverty among older Australians. And even though they usually are wealthy in terms of health, employment, and education, there are still several causes of concern, such as income security and financial safety.
That is probably the reason why many older Aussies have adapted the frugal lifestyle, which highlights the importance of allocating a monthly budget carefully, all the while keeping unnecessary expenses to a minimum.
After all, staying stress-free in their finances also means living within their means.
The word “frugal”, and frugal living in general, are oftentimes seen in a negative light. To some, frugal living is equivalent to sacrificing their quality of life for the mere sake of saving money. They see frugality as the same as trading their favourite brand of products to generic store brands, or skipping on holidays because there are more “important” expenses out there.
And while this may be true for some people out there, this “frugality” is not always the case. Frugal living isn’t the same as being mindlessly cheap and stingy – it’s about being resourceful.
Frugal living is about finding ways of being very intentional with your spending, to allow yourself to save wherever you can, whether via coupons, freebies or DIY hacks. Proper frugal living teaches a person to cut back on spending in some areas, so that they can prioritise the things that matter to them most.
So whether you’re saving for a comfortable retirement, for your dreams of travelling the world (or Australia), for a simple debt-free life, or if you’re just simply done letting money take control of your life, we’re sure you can find frugal living to be extremely helpful and worth it for you!
Now if you are ready to take the leap into this new lifestyle, here are some tips to get you started:
Credit: Future Generali.
1. Create a budget and stick to it.
The first, and probably the most important tip when it comes to saving money, is learning to adhere to a strict budgeting plan. Budget is always an important factor, especially if you’re living on a fixed retirement income.
To build a simple budget plan, try to take a look at your spending over the past three months. If you primarily use cash in your transactions, make it a habit to record your purchases, either by taking a note on your phone or writing it on paper.
From here you should be able to see a general overview of your monthly expenses, compared with your monthly income. Use this expenses diary to allocate your income properly and to make a clear distinction between your wants and your needs.
Always remember to pay for your necessities first! These are your mandatory bills, rent/mortgage repayments, medication refills, food, insurance, utilities such as water and electricity, to name a few.
We also advise double-checking your bills each month. Billing mistakes are a lot more common than you think, so regularly checking through your bills will help you spot mistakes that may have cost you unknowingly.
You should also set a reasonable amount for your savings, and build a solid emergency fund that would cover at least three months of your expenses.
2. Prune non-essential expenses.
Speaking of wants and needs, are you aware that non-essential expenses comprise about 30 per cent of a regular person’s monthly income? That’s a lot of money for something that we can relatively live without.
We understand that life is about simple pleasures, but those can add up pretty fast if you don’t watch yourself.
Part of being frugal is rethinking your habits so you can properly identify what is non-essential. Do you really need that latest gadget when yours are working perfectly fine? How about those magazine and streaming subscriptions? Are two cars really necessary?
Frugal experts recommend following the 72-Hour Rule, which basically says: If you see something that you absolutely want at a store, wait 72 hours (3 days) before buying it.
Often, it may just turn out to be an impulse purchase after all. They also recommend removing your financial information from your favourite online stores to prevent mindless shopping.
3. Limit your monthly splurges.
Being frugal with your expenses does not mean denying yourself the joy of splurging, even by just a little. Being too strict with your money will wear you out, after all, so remember to treat yourself once in a while, while still staying within your budget limitations.
To keep track of these splurges, you can also make a list at the beginning of the month of splurges you wouldn’t mind making, and then choose just one or two. This way, you can still control and oversee how much money you’re shelling out for these treats.
4. Invest in quality over quantity.
And while we’re on the topic of buying, one of the biggest moves we can make to save money will always be investing in high-quality items.
Instead of buying low-cost, yet substandard products, it would be much better to invest in a high-quality product that will give you your money’s worth. These items may be pricier at first, but they would help you save money in the long run. Repairs and replacements don’t come cheap, after all.
However, we understand that things happen, and no matter how top-notch a product is, there will come a time that it will no longer be able to perform its best.
When something breaks, the easiest option would probably be to replace it. However, money-saving experts advise against this.
For them, it’s best to try repairing the product first before replacing it altogether. Household things like shoes, furniture, even kitchen appliances, only need easy and low-cost repairs when they break, which are much more economical than replacing them. Less unnecessary waste, too!
Credit: kate_sept2004 / E+ / Getty Images.
5. Declutter your home.
This may come as a surprise to some people, but decluttering your home can actually save you a few bucks from expenses every month.
Decluttering the rooms in your home gives you the time to reevaluate your household items and you may also be able to find things of value that are no longer needed in your daily life. But instead of throwing them into the trash, you can sell those items and turn clutter into cash! Organise a big garage sale maybe, or give ‘Gum Tree’, ‘Ebay’ or ‘Facebook Marketplace’ a try.
6. Avoid the “upgrade treadmill”.
Whether it’s the latest version of your smartphone or a newly-released smart home gadget, being practical also means avoiding caving in to pressure just to keep up with times.
Jeff Bezos, the billionaire behind Amazon, coined the term “upgrade treadmill” to describe people’s endless tendency to follow and keep up with the latest and greatest gadgets.
7. Try to cut down on daily household expenses.
This advice is a bit general, and we know there are already thousands and thousands of ways on how to reduce household expenses. So, we’re just going to list some of the most helpful suggestions we have found:
8. Take care of your health.
As the popular saying goes, “prevention is better than cure”.
By staying healthy and prioritising your health, you can save a lot of money from possible hospital expenses. Not to mention, it makes you feel good too!
And naturally, the best way to take care of ourselves is through exercise.
Making time to exercise every day is probably the cheapest way to stay healthy. Even simply walking around the block can be a great activity! For adults ages 50 and above, health experts recommend getting at least 2 and a half hours of moderate aerobic exercise per week.
9. Plan your meals and cook them at home.
Aside from exercise, having a proper well-balanced diet keeps a person fit and healthy. Pair that with a carefully scheduled meal plan, and you’ve got yourself a whole week’s worth of nutritious meals that won’t burn a hole through your budget.
Although eating out is a nice treat once in a while, not everyone can afford to have restaurant food for dinner every night. Instead of ordering, opting for home-cooked meals will allow you to save around $10-$20 every day, which adds up pretty quickly. Continue cooking your own meals for a couple of weeks and you will have hundreds of dollars saved from food expenses.
Also, learning how to cook your favourite meals at home is a fun bonding activity you can share with your friends and family.
However, if you do go out to eat, try avoiding appetisers and desserts that can inflate not only the total cost of your meal, but your calorie count as well.
Before going to the grocery store, you can also check the supermarket’s weekly specials. Then, you can base your meal plans around the products that are half-priced or heavily discounted.
We always post the Coles, Woolworths, Aldi and IGA weekly specials here on our website every Wednesday, so you can check them out before you go shopping. All you have to do is scroll down the page until you see the threads with the Supermarket logos.
Not only will doing this help you save a lot of money, but it also keeps your meals interesting! And if you’re not so sure about what to cook, you can always check our cooking and recipes forum. We do our best to come up with recipes that are not only easy, but affordable to make for any type of cook!
And while we’re still on the topic of meal plans, cooking in bulk has also proven to be helpful, especially to those who do not always have the time to cook themselves a meal.
Sunday afternoon is a good time to cook big batches of your favourite meals, and proceed to freeze several portions that you can enjoy all throughout the week. Simply take them out of the freezer and heat them up!
Now you no longer have to resort to fast food deliveries. Your wallet and waistline will thank you in advance.
10. Quit your vices.
According to recent market trends, the prices of cigarettes are only going to go up, so now’s probably the best time to quit any vices you have, such as smoking. It may not seem that much, but cigarettes burn through a person’s wallet as well, not just their lungs.
Credit: Getty Images/iStockphoto.
11. Seek out bargains and take advantage of senior discounts.
We are not named the Seniors Discount Club for nothing. Aside from sharing helpful life hacks, we also bring to our members daily bargain finds that are available online, so you don’t miss out!
When shopping in stores, you can also try heading straight to their clearance section. You might be surprised by how many great deals can be found there.
On the other hand, senior discounts are everywhere. Many Aussie stores and restaurants offer them so make sure to cash in on these deals! Just don’t forget to carry with you your Seniors Card.
And if you don’t see a discount listed, it never hurts to ask!
12. Attend community-sponsored activities.
Having a lot of free time on your hands usually leads to more unnecessary spending. Sometimes, people will impulsively book tickets to live concerts or movies just because they’re bored, which tends to damage their savings. But entertainment doesn’t always have to be expensive!
People who are practising frugal living usually file entertainment activities, such as concerts and movies, under nonessential expenses. That doesn’t mean they don’t have any fun, though.
Frugal people just tend to prefer activities that are free of charge, such as regular sports competitions, free museum days, and if they’re in the mood for some movies, they can always rent some at the local library.
There are also those who prefer to spend their extra time volunteering and doing community work. Not only can they save money, but they also help make the world a better place, even if it’s just within their community.
13. Make it a habit to save every spare change.
Just like when we were kids, keeping our money in closed jars has always been effective for saving up some cash.
Try making it a habit that every time you encounter some spare change in your purchases, quickly put it inside your “spare change jar”, so that you won’t be tempted to spend it.
You can also decide to open the jar only once per year, probably near the festive season for that extra cash. We bet you’ll be surprised to know how much your spare change can add up to.
14. Buy used items from other people and learn how to barter.
Ever since the rise of online selling communities on the internet, more and more people have been selling their stuff online. And while it may be tempting to just go out and buy a new appliance or home furniture, try to see first if you can find someone online willing to sell it for a more reasonable price. (You can even offer to trade it with something you have!)
This way, you’re helping extend the life cycle of appliances and furniture. And you’re helping reduce waste in the environment, too!
15. Evaluate your priorities.
Even though frugal living can be exciting, it does not always work for everyone.
Some people, especially those who are naturally not good at saving money, can quickly feel overwhelmed by the number of changes they have to make in their daily lifestyle.
That’s why it’s also really important for people to know and evaluate their priorities.
Frugal living is difficult, and it’s totally normal to not get it right all of the time. That’s okay! Just don’t be afraid to make some changes along the way to suit your needs. These tips are not a one-size-fits-all strategy after all, and not every person has the same priorities in life.
A good way to start living frugally is to implement these tips and strategies slowly. You should try them out first to see how they would feel. Once you get the hang of it, continue adding more strategies until you truly find your frugal stride.
As a matter of fact, the Global AgeWatch Index from 2015 found that there is an alarmingly high rate of poverty among older Australians. And even though they usually are wealthy in terms of health, employment, and education, there are still several causes of concern, such as income security and financial safety.
That is probably the reason why many older Aussies have adapted the frugal lifestyle, which highlights the importance of allocating a monthly budget carefully, all the while keeping unnecessary expenses to a minimum.
After all, staying stress-free in their finances also means living within their means.
The word “frugal”, and frugal living in general, are oftentimes seen in a negative light. To some, frugal living is equivalent to sacrificing their quality of life for the mere sake of saving money. They see frugality as the same as trading their favourite brand of products to generic store brands, or skipping on holidays because there are more “important” expenses out there.
And while this may be true for some people out there, this “frugality” is not always the case. Frugal living isn’t the same as being mindlessly cheap and stingy – it’s about being resourceful.
Frugal living is about finding ways of being very intentional with your spending, to allow yourself to save wherever you can, whether via coupons, freebies or DIY hacks. Proper frugal living teaches a person to cut back on spending in some areas, so that they can prioritise the things that matter to them most.
So whether you’re saving for a comfortable retirement, for your dreams of travelling the world (or Australia), for a simple debt-free life, or if you’re just simply done letting money take control of your life, we’re sure you can find frugal living to be extremely helpful and worth it for you!
Now if you are ready to take the leap into this new lifestyle, here are some tips to get you started:
Credit: Future Generali.
1. Create a budget and stick to it.
The first, and probably the most important tip when it comes to saving money, is learning to adhere to a strict budgeting plan. Budget is always an important factor, especially if you’re living on a fixed retirement income.
To build a simple budget plan, try to take a look at your spending over the past three months. If you primarily use cash in your transactions, make it a habit to record your purchases, either by taking a note on your phone or writing it on paper.
From here you should be able to see a general overview of your monthly expenses, compared with your monthly income. Use this expenses diary to allocate your income properly and to make a clear distinction between your wants and your needs.
Always remember to pay for your necessities first! These are your mandatory bills, rent/mortgage repayments, medication refills, food, insurance, utilities such as water and electricity, to name a few.
We also advise double-checking your bills each month. Billing mistakes are a lot more common than you think, so regularly checking through your bills will help you spot mistakes that may have cost you unknowingly.
You should also set a reasonable amount for your savings, and build a solid emergency fund that would cover at least three months of your expenses.
2. Prune non-essential expenses.
Speaking of wants and needs, are you aware that non-essential expenses comprise about 30 per cent of a regular person’s monthly income? That’s a lot of money for something that we can relatively live without.
We understand that life is about simple pleasures, but those can add up pretty fast if you don’t watch yourself.
Part of being frugal is rethinking your habits so you can properly identify what is non-essential. Do you really need that latest gadget when yours are working perfectly fine? How about those magazine and streaming subscriptions? Are two cars really necessary?
Frugal experts recommend following the 72-Hour Rule, which basically says: If you see something that you absolutely want at a store, wait 72 hours (3 days) before buying it.
Often, it may just turn out to be an impulse purchase after all. They also recommend removing your financial information from your favourite online stores to prevent mindless shopping.
3. Limit your monthly splurges.
Being frugal with your expenses does not mean denying yourself the joy of splurging, even by just a little. Being too strict with your money will wear you out, after all, so remember to treat yourself once in a while, while still staying within your budget limitations.
To keep track of these splurges, you can also make a list at the beginning of the month of splurges you wouldn’t mind making, and then choose just one or two. This way, you can still control and oversee how much money you’re shelling out for these treats.
4. Invest in quality over quantity.
And while we’re on the topic of buying, one of the biggest moves we can make to save money will always be investing in high-quality items.
Instead of buying low-cost, yet substandard products, it would be much better to invest in a high-quality product that will give you your money’s worth. These items may be pricier at first, but they would help you save money in the long run. Repairs and replacements don’t come cheap, after all.
However, we understand that things happen, and no matter how top-notch a product is, there will come a time that it will no longer be able to perform its best.
When something breaks, the easiest option would probably be to replace it. However, money-saving experts advise against this.
For them, it’s best to try repairing the product first before replacing it altogether. Household things like shoes, furniture, even kitchen appliances, only need easy and low-cost repairs when they break, which are much more economical than replacing them. Less unnecessary waste, too!
Credit: kate_sept2004 / E+ / Getty Images.
This may come as a surprise to some people, but decluttering your home can actually save you a few bucks from expenses every month.
Decluttering the rooms in your home gives you the time to reevaluate your household items and you may also be able to find things of value that are no longer needed in your daily life. But instead of throwing them into the trash, you can sell those items and turn clutter into cash! Organise a big garage sale maybe, or give ‘Gum Tree’, ‘Ebay’ or ‘Facebook Marketplace’ a try.
6. Avoid the “upgrade treadmill”.
Whether it’s the latest version of your smartphone or a newly-released smart home gadget, being practical also means avoiding caving in to pressure just to keep up with times.
Jeff Bezos, the billionaire behind Amazon, coined the term “upgrade treadmill” to describe people’s endless tendency to follow and keep up with the latest and greatest gadgets.
7. Try to cut down on daily household expenses.
This advice is a bit general, and we know there are already thousands and thousands of ways on how to reduce household expenses. So, we’re just going to list some of the most helpful suggestions we have found:
- Paper towels are one of the handiest items in our bathrooms and kitchens, but they aren’t exactly the cheapest. So instead of using paper towels for everything, try switching to rags or old fabrics instead! You can cut up old towels, shirts, and even bedsheets and curtains into whatever size you like and voila, you now have handy washable rags!
- Cleaners can fetch a pretty hefty price tag in supermarkets, so why not opt for natural cleaners, instead? They’re just as effective and way cheaper, too. Check out some of them here!
- According to a study conducted by a cleaning institute abroad, many people actually use twice the amount of detergent than required in their laundry. Not only that, but people also commonly use the same amount of laundry detergent no matter what size load they wash. By simply adjusting the amount of detergent you use, you can slash a few dollars off your monthly expenses.
- Saving experts also recommend doing full loads as much as possible. Not only will it save you electricity, but it will also save you quite a few gallons of water in the long run!
- And while we’re talking about laundry, are you aware that dryers are one of the biggest energy hogs in the house? Opt for outdoor drying racks or retractable clotheslines instead!
- And for our appliances and electronics, simply remembering to turn them off after use can help save some cash. You can also opt to install CFLs or LEDs instead of incandescent bulbs to lower electricity consumption.
8. Take care of your health.
As the popular saying goes, “prevention is better than cure”.
By staying healthy and prioritising your health, you can save a lot of money from possible hospital expenses. Not to mention, it makes you feel good too!
And naturally, the best way to take care of ourselves is through exercise.
Making time to exercise every day is probably the cheapest way to stay healthy. Even simply walking around the block can be a great activity! For adults ages 50 and above, health experts recommend getting at least 2 and a half hours of moderate aerobic exercise per week.
Aside from exercise, having a proper well-balanced diet keeps a person fit and healthy. Pair that with a carefully scheduled meal plan, and you’ve got yourself a whole week’s worth of nutritious meals that won’t burn a hole through your budget.
Although eating out is a nice treat once in a while, not everyone can afford to have restaurant food for dinner every night. Instead of ordering, opting for home-cooked meals will allow you to save around $10-$20 every day, which adds up pretty quickly. Continue cooking your own meals for a couple of weeks and you will have hundreds of dollars saved from food expenses.
Also, learning how to cook your favourite meals at home is a fun bonding activity you can share with your friends and family.
However, if you do go out to eat, try avoiding appetisers and desserts that can inflate not only the total cost of your meal, but your calorie count as well.
Before going to the grocery store, you can also check the supermarket’s weekly specials. Then, you can base your meal plans around the products that are half-priced or heavily discounted.
We always post the Coles, Woolworths, Aldi and IGA weekly specials here on our website every Wednesday, so you can check them out before you go shopping. All you have to do is scroll down the page until you see the threads with the Supermarket logos.
Not only will doing this help you save a lot of money, but it also keeps your meals interesting! And if you’re not so sure about what to cook, you can always check our cooking and recipes forum. We do our best to come up with recipes that are not only easy, but affordable to make for any type of cook!
And while we’re still on the topic of meal plans, cooking in bulk has also proven to be helpful, especially to those who do not always have the time to cook themselves a meal.
Sunday afternoon is a good time to cook big batches of your favourite meals, and proceed to freeze several portions that you can enjoy all throughout the week. Simply take them out of the freezer and heat them up!
Now you no longer have to resort to fast food deliveries. Your wallet and waistline will thank you in advance.
10. Quit your vices.
According to recent market trends, the prices of cigarettes are only going to go up, so now’s probably the best time to quit any vices you have, such as smoking. It may not seem that much, but cigarettes burn through a person’s wallet as well, not just their lungs.
Credit: Getty Images/iStockphoto.
11. Seek out bargains and take advantage of senior discounts.
We are not named the Seniors Discount Club for nothing. Aside from sharing helpful life hacks, we also bring to our members daily bargain finds that are available online, so you don’t miss out!
When shopping in stores, you can also try heading straight to their clearance section. You might be surprised by how many great deals can be found there.
On the other hand, senior discounts are everywhere. Many Aussie stores and restaurants offer them so make sure to cash in on these deals! Just don’t forget to carry with you your Seniors Card.
And if you don’t see a discount listed, it never hurts to ask!
12. Attend community-sponsored activities.
Having a lot of free time on your hands usually leads to more unnecessary spending. Sometimes, people will impulsively book tickets to live concerts or movies just because they’re bored, which tends to damage their savings. But entertainment doesn’t always have to be expensive!
People who are practising frugal living usually file entertainment activities, such as concerts and movies, under nonessential expenses. That doesn’t mean they don’t have any fun, though.
Frugal people just tend to prefer activities that are free of charge, such as regular sports competitions, free museum days, and if they’re in the mood for some movies, they can always rent some at the local library.
There are also those who prefer to spend their extra time volunteering and doing community work. Not only can they save money, but they also help make the world a better place, even if it’s just within their community.
13. Make it a habit to save every spare change.
Just like when we were kids, keeping our money in closed jars has always been effective for saving up some cash.
Try making it a habit that every time you encounter some spare change in your purchases, quickly put it inside your “spare change jar”, so that you won’t be tempted to spend it.
You can also decide to open the jar only once per year, probably near the festive season for that extra cash. We bet you’ll be surprised to know how much your spare change can add up to.
14. Buy used items from other people and learn how to barter.
Ever since the rise of online selling communities on the internet, more and more people have been selling their stuff online. And while it may be tempting to just go out and buy a new appliance or home furniture, try to see first if you can find someone online willing to sell it for a more reasonable price. (You can even offer to trade it with something you have!)
This way, you’re helping extend the life cycle of appliances and furniture. And you’re helping reduce waste in the environment, too!
15. Evaluate your priorities.
Even though frugal living can be exciting, it does not always work for everyone.
Some people, especially those who are naturally not good at saving money, can quickly feel overwhelmed by the number of changes they have to make in their daily lifestyle.
That’s why it’s also really important for people to know and evaluate their priorities.
Frugal living is difficult, and it’s totally normal to not get it right all of the time. That’s okay! Just don’t be afraid to make some changes along the way to suit your needs. These tips are not a one-size-fits-all strategy after all, and not every person has the same priorities in life.
A good way to start living frugally is to implement these tips and strategies slowly. You should try them out first to see how they would feel. Once you get the hang of it, continue adding more strategies until you truly find your frugal stride.
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