Can You Live A Frugal Life?

The western world contains an abundance of goods and apparently unlimited money to buy them. Many people have a great deal of equity value in their homes and have found that cheap debt will help them live for today and pay it off tomorrow. The problem is that nothing may be left over for long-term investments.

A study of millionaires revealed that one of the secrets of accumulating wealth is to live below your means and invest conservatively. The lesson is that they are happy with what they have. In other words, they make it a habit to live frugally.

The word "frugal" has come to have a more negative implication than simply being a saver, a cheapskate or tightwad. The difference between saving and frugality to the point of ridiculousness represents a fine line. Consequently this negative connotation has crept in.

But if you are guided by the right principles in deciding to live a prudent life, you can never go wrong. You don't have to worry about insults. Keep your head high and maintain your focus through these tips:

1. Eating Out - Dinners at restaurants are great once in a while. But they can be expensive if you add up the costs at the end of the month.
2. Clothing - Naturally, if you are a person who adores designer clothes, you can't expect to have much left of your take home pay. Instead of being trendy and at the height of fashion, try to purchase clothes that can be easily matched with your existing wardrobe.
3. Own the right sized Home - If you are planning to find a place to settle, do not be overwhelmed; try to be practical. For a start, buy a smaller house and work your way up. Many people acquire homes that are well above their budgets and when interest rates rise, find themselves in an uncomfortable situation.
4. Buying a Car - Avoid sports cars or SUVs. Just stick to the purpose of a car, which is to transport you where you need to go. Check out programs like a new car warranty. This may not be the best time to replace your car with a brand new one.
5. Shopping for Groceries - As much as possible do not purchase brand name items. Choose non-brands and look for items on the highest or lowest shelves for the best prices. Grab the opportunity to shop during sales or use discount coupons.
6. Family Outings - Some inexpensive ways to bond with your family and be entertained are: go to libraries, local parks, the mall, picnics, visit friends and the local church.
7. Buying School Supplies - Stock school supplies at home and do not buy anything elaborate.
8. Plan your Child's College Education - Teach your children to be independent and self-supporting by encouraging them to apply for scholarships and "on campus jobs".
9. Anticipate your Failures by Planning - Always have a budget in order to avoid impulsive buying.

Although some of these rules may put a damper on the excitement of living for today, putting them into practice can help you balance your current lifestyle with one of saving for the future.