Content Attributes
Saving money can help you sail smoothly through emergencies or afford large life purchases like a new home or college degree. Crucially, substantial savings mean you can enjoy a comfortable retirement instead of having to work well into your senior years.
To help you build the savings you need to succeed in the game of life, here are five frugal living tips for accumulating wealth:
Save Money on Expensive Services
An accountant can save you a lot of money on your taxes. However, you can get these benefits more affordably if you lodge a tax return online with a service that has an accountant check it for you.
You can apply this DIY logic to other areas of your life as well. Paint your living room instead of hiring a contractor, and sell your house yourself instead of hiring a realtor. Not only will you save money by performing these tasks yourself, but you’ll also learn valuable skills that are sure to help you in other areas of life.
Learn to Love What You Make Yourself
A recent survey showed that over 14% of Americans spend more than $40 a month on takeout coffee. That 14% of people could save nearly $500 a year just by cutting out coffee alone. Switch to a flask or make drinks in the office, and keep that cash for something more meaningful. Start doing the same with takeout food, getting your nails done, and having your car washed. Cut these small costs (and invest the money instead), and the savings can be huge over time.
Buy Second Hand
The average American family spends $1,700 on clothes every year. Switch those purchases to secondhand and get into the rhythm of selling clothes whenever you buy more. With this approach, you’re looking at a much smaller bill for what you wear. Most clothing holds little to no value once you take it home, so there’s no point in accumulating more than you need. There’s also no shame in buying and selling secondhand. Indeed, according to The Millionaire Next Door, many low-key millionaires use this tactic.
Don’t Buy So Many Things
Scientific studies and cultural observations suggest that we buy things we don’t need to feel happiness and control over our lives in a chaotic world. To be frugal means to avoid buying the latest thing everyone is excited about. Cars, smartphones, fashionable shoes, another overly specific kitchen gadget – all things you know deep down that you want but don’t need.
Think back on other times you purchased such things. Did they bring you any lasting happiness? Or did the shine wear off after a few days, leaving you craving the next consumerist high? By contrast, saving money for more meaningful things is an investment in your long-term happiness and well-being.
Automate Your Savings Strategy
Are you the kind of person who struggles to save actively? If so, there are some easy solutions to get you started. For example, some saving and investment apps offer roundup features, taking the change from every purchase and putting that money aside for you. Then there are money management apps that take the money from you before you’ve had a chance to spend it. For those who struggle to stick to savings goals, these can be beneficial tools.
Follow the tips above and start saving money for a healthier bank balance and quicker success in reaching your financial goals. Ultimately, this process will help you develop the discipline and patience needed to build your wealth long-term.