Is being frugal being stingy? Absolutely not!
Being stingy is to "take advantage of someone" or " not be generous to someone" but being frugal is about YOU choosing not to spend recklessly.
It's an attitude towards money that you apply to ALL your purchases.
Below are 3 important mindsets for you to be more frugal and start saving half of your income!
Mindset 1: Be Early For Anything (3 reasons for it!)
Reason 1: There are dining apps that give you a discount to eat early!
Have you heard of Eatigo? If you haven't this is the link!
You can get up to 50% off for eating lunch early!
On a side note, there are other dining apps to help you save.
One of them is BURPPLE BEYOND and click this link to check them out too.
Reason 2: How often have you taken taxis because you were late!
This is one of the most common reasons of racking up credit card bills. Agree?
If you've been spending a lot on taxi fares, you need to get it under control.
The solution is obvious, that is to wake up earlier tomorrow and take the bus.
Reason 3: Airplane tickets are way cheaper when sold early!
From my surveys, people travel twice a year and this hack can save you a few hundred dollars.
Many airlines have promotions for tickets for next year's flight. I've a friend who flew to Holland at $800+ only.
Take a look at this! SQ to Barcelona only $868!!!
What a great deal when you can book 1 year in advance!
Mindset 2: Live Healthy | Reasons and tips!
If you are self employed or if you run a business, isn't each day sick going to be loss of revenue?
For myself, I run a financial advisory business and I'm keenly aware that being sick is very costly.
Hence, I spend selectively on nutrition and exercise. This would cost less than an expensive medical bill!
If you work for an organisation, taking too much MC will impact surely your boss's opinion of you.
Doesn't this somehow affect you income eventually also?
I've even heard that some companies even give a bonus to staff who do not take MCs!
EXTRA REASON TO NOT SMOKE: Insurance premiums for smokers are at least 30% more expensive!
Below is a quick summary for term insurance plans. If you are keen to get an exact quote, click here to contact us.
For declaration of non-smoking status, it is must be at least after 1 year of full quitting.
There are also plans with discounts for people with good health readings. Manulife for example has a "Health advantage" option that discounts the plan premiums thus giving you more savings!
EXTRA TIP: Cut back on alcohol
These are expensive vices and if you want to be frugal, cut them out!
I've a private client who used to spend almost $2,000/m in drinking with his colleagues. It was only after he took hard looks at his credit card bills that he decided to reduce this habit of drinking drastically.
Mindset 3: Saying "NO"
If your long time friend whom you haven't seen in a long while ask you for a catchup at somewhere expensive like a good restaurant or a bar, what would you say?
There's no shame saying NO if it's above your budget.
Saying NO is an important mindset to being frugal
We all face social pressures from family and friends. What about expensive habits like movie's which cost $20 for 2 tickets easily and concert tickets which cost easily $200?
Saying no to these will save you lots of money! There are always alternative activities that cost nothing, like watching youtube!
The last part of saying NO is towards offers!
There are some many offers to get you to buy more so to qualify for discount offers.
These include buy a second piece of jeans at 50% off when all you wanted was a pair.
More money is hence expanded from your wallet.
Save half of your income or more!
If you think saving half your income is hard, I'm here to share that it's possible!
There are many who even have kids who save half of their income. You can do so too by being frugal with the 3 mindsets shared above.
How much do you save right now?
If you don't know then the first step is to go and track it.
Saving 50% of your income is essential to getting to financial freedom.
Simply because a 50% savings rate gets you to financial freedom in 17years!
ANYTHING less than 50% savings rate really takes TOO long to get to financial freedom!
If you want more information on it, watch the video below...
Here at TheAstuteParent, we are one of the largest resource for insurance planning and financial advice for families! Over the course of our careers, we have met and helped many families.
Click here to join the Facebook Group Millionaire Kids by TheAstuteParent. #millionairekids. The community is there for you ask and answer questions, share your knowledge and meet like-minded people.
Being a breadwinner is a unique stage in life. So take on that responsibility and be an Astute Parent !