Most of us would like to live a carefree life, but our finances never allow us to sit back and enjoy it. Worrying about money will not only affect your general wellbeing, but also can have a negative impact on your mental health and your mindset. To achieve more of that carefree life, it’s important to master control of your money; and for many of us, that means cutting back on our spending. Let’s explore a few tips for living more frugally:

Never Pay Too Much

Buying things is something we all have to do; whether for necessities like groceries and clothes, or for things we want. In today’s modern world of abundant information, shopping around will help us not overpay. Start with your regular expenses, such as your mortgage, bills, and insurance. You should compare the prices of all the services you need, and look into the contract to ensure that your price will not double in a couple of months after a promo period has ended. Are you paying for too much coverage, or could you do without? Could you get a better rate by going with another company? You can compare car insurances and find out what cover is the best value for the money.  

Never Pay for Things You Don’t Use

We are all guilty of paying for things we don’t really need. When you walk past a shop window or browse the internet, you might simply say that you need it. In fact, you just want it. There is a massive difference. Look through your subscriptions and find out whether there is a cheaper alternative. For example, you might be paying more for individual magazines that are just stacked up on the shelves, instead of opting for a digital version.

Plan for Bigger Purchases

If you know that you will have to replace your car, your washing machine, or renovate your home, you should start saving up for that expense. This means that you will know what you can afford and avoid overspending and ending up in debt. To achieve complete financial freedom, you will need to plan purchases in advance and increase your income if necessary.

Earn Interest

One of the basics of good personal finance is maintaining a savings account. A savings account is where you’ll store your emergency fund, save for those bigger purchases, and also keep a portion of your overall investment portfolio. Not only are savings accounts good places to keep money safe, they’ll also earn you interest, which can really add up over time. There are flexible saving accounts that don’t require to keep your money in the account for a set period of time, and still pay you interest for every dollar. If you’re not earning at least 2% interest on your savings accounts, you should really shop around at different banks. If the money is just sitting there, it might as well earn all it can!

Don’t Buy What You Can’t Buy for Cash

If you would like to avoid debt, you will have to learn to say no to things you cannot afford. For example, you might want a new car, but you will end up paying double the price if you take out a hire purchase agreement or you take out a loan. Buying a new car is also a quickly depreciating asset. Aside from buying a house, I’m a big believer in paying cash for everything else.

Achieving financial freedom isn’t easy, but certainly is worth it. Form good habits and have a good plan to help you achieve it!

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