Some people frown on frugality. They think that it is a boring, effort-filled and restricting way of life. Nobody wants to squeeze out all the fun in their daily lives. But who said that you have to do that?
Before we can discuss how frugality can help you reach financial freedom by getting out of debt, you need to get rid of any misconception that you have about it. Believe it or not, people who live a frugal life is not miserable. In fact, they get a lot of satisfaction and fulfillment in it because this type of lifestyle enabled them to get out of debt , stay out of it and purchase the things that they need without acquiring credit for it. If these results are appealing to you, then you need to start applying frugality principles in your life.
The overall principle of frugal living is the ability to live within your means. Simply put, your expenses should not exceed your income. Here are some of the ways that you can achieve this.
First of all, you need to put your whole finances on a budget. This means identifying your total income and the various expenses that you make. The whole idea is to make sure your income goes to the right expense. By monitoring where everything is spent on, you can actually eliminate your impulsive buying habits. You are more conscious of how you make purchasing decisions.
As you accomplish that, you are actually applying another frugality principle – wise spending. Since you are tracking every expense, you think twice before you make a purchase. It helps to apply the ten second rule that simple requires you to take at least that amount of time to think before you bring anything to the cashier. For bigger purchases, you should apply the 30 day rule that means you wait a month before you make a purchase. At the very least, that will give you the time to save up for a portion of this expense – if not the whole cost.
Frugality also entails being a minimalist. Get rid of the things that are just lying around or incurring unnecessary expense. These are mostly clutter anyway. Declutter your life and be a minimalist. Live with only what you need. This is why a lot of people prefer living in smaller homes after debt. The limiting space forces them to minimize possessions that also helps them keep a tight lid on household expenses.
These are only a few of the things that you can do to control your spending by living a frugal life. As you lower your spending, you get to increase your debt payment fund and in effect, you get closer to achieving financial freedom.