Did you know that Americans waste over $5,400 annually on impulse buys? And oddly, they buy things they don’t necessarily want, don’t need, or would be better off buying cheaper. For example, over 70% of Americans waste Money on impulse buys related to food! It would be so much cheaper to practice self-control or to learn how to cook at home. Having enough money in life to live comfortably, or to achieve financial independence, is a privilege that one must aspire to perfect every day. Don’t treat money as though it were a tool for waste. Money is a financial instrument that enables you to have more life options. Ask yourself: how many options in life do you have when you are broke? If you learn some thrifty life habits, then you will never want for money.
Thrifty Life Habits and Being Cheap
When I talk of thrifty life habits, I am referring to the practice of not wasting money for its own sake.
It is easy to waste money without thinking about it or even being conscious of the act. I used to buy a large candy bar after work every day. Not only was it bad for my health, but that dollar or two that I spent on a small purchase adds up in the long run.
If I bought a large $1.50 candy bar each workday, then that adds up to $7.50 every week.
That is like spending $30 a month on candy bars. Or, the equivalent of spending $360 every year on candy bars.
If you can look at your own spending habits in a similar introspective fashion, you will want to save money. You will develop more thrifty life habits on your own.
And keep in mind, developing thrifty life habits has nothing to do with being cheap.
Being cheap is the habitual habit of saving money at any cost and even to the detriment of your own well-being.
If you refuse to spend money on medical checkups, home repair, car insurance, or other important life expenses, then you are being cheap. Also, being cheap can cost you a lot financially and in many other ways in the long run.
Developing thrifty life habits does require sacrifice and self-control, but your bank account will benefit in the long run.
Here are several ways that you can learn to become thrifty.
Save Money Any Way You Can
The best way to maximize thrifty life habits is to save money. And you should try to save money any way possible despite yourself.
Create a piggy bank at home. Gather all your spare or deposit your spare change into the piggy bank whenever you can.
This practice will dissuade you from spending all of your spare change on impulse purchases.
If you spend your money as soon as you get it in your hands, then start saving it before it gets into your hands.
For instance, if you receive your pay via direct deposit, then you can automatically allot a percentage of your pay into a savings account before you receive it.
However, if you don’t know how you are wasting money in the first place, you won’t be able to save any.
Remember, just as many people waste money unwittingly as they do wittingly.
Develop a daily or weekly spending diary. Write down a record of everything you purchase and then review it later.
It’s hard to ignore the truth, and a spending diary will force you to confront wasteful impulse buys before it gets out of hand.
Reevaluate Your Household Budget
If you are not in the habit of developing weekly and monthly budgets, then get in the habit.
And developing one budget won’t do. Budgets must be updated and adjusted regularly for when you receive raises in pay, reductions in pay, or to adjust for any other personal finance circumstances.
Look at your food budget. Do you really need to buy everything on your grocery list? Do you even have a grocery list?
Many people buy impulse purchases along with their list when going to the supermarket. Develop a strict grocery list before shopping and stick to it.
Reevaluate your entertainment budget. Do you really need a cable subscription plan with 500+ channels? When will you find the time to watch all of those channels?
Subscribe to a cable channel that fits your budget.
As long as you are honest about how you are spending your money, you can brainstorm ways how to save.
Start Cooking at Home
We are in the middle of a pandemic that is stressing people out. People feel lonelier and more disconnected now than ever before.
And believe me, I understand the appeal of comfort food. There is nothing better than getting pizza, Chinese food, or hamburgers delivered at your leisure.
Yet do you ever think about how much money you waste on take out?
The typical American household spends over $3,000 annually on takeout food.
Learn how to cook at home. You can start by following cooking tutorials on YouTube.
Also, don’t be anxious about learning to cook. Start with simple recipes and go on from there. Learning to cook at home is one of the best ways to develop thrifty life habits.
Thrifty Life Habits
Developing thrifty life habits takes time.
It is something you learn to do and perfect over time after a lot of trial and error.
The best inspiration to start developing thrifty life habits is to look at your expenses, budgets, and then consider your future financial dreams.
Only you can control your personal finances. Never forget that.
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The post 3 Habits to Develop to Live a Thrifty Life appeared first on Fine-Tuned Finances.
