If you’re aiming to boost your finances in the latter half of 2024, adopting some new frugal habits can make a significant difference. Being frugal isn’t the same as being cheap. Jen Reid, a financial planner and expert and founder of Base Financial Planning, explains the distinction. “A frugal person prioritizes their spending, focusing on what they truly want, need, and value,” she says. Being cheap is simply about spending as little as possible.”
Embracing frugality offers numerous financial and personal benefits. “It allows you to focus on your priorities and what matters most,” Reid adds. “You can live a frugal yet wealthy life by consciously spending on things that bring you joy.”
Cutting Your Grocery Bill
While rising grocery prices cannot be controlled, you can change your shopping habits, says Scott Lieberman, founder of Touchdown Money. “It all comes down to planning,” he notes. Plan your weekly menus based on store flyers, many of which are available online. Sign up for store apps for discounts, freeze or store excess food bought on sale, and shop at warehouse stores for bulk items.
Lieberman recommends using a service like Dinner Daily to find the best prices. “For a small subscription fee, you tell Dinner Daily where you shop and your meal preferences. They provide a weekly meal plan, recipes, and coupons for the items,” he explains. Stock your pantry with frequently used staples and keep an eye out for sales on items you regularly use.
Searching for Cheap Entertainment
Instead of going out to restaurants, shows, or movies, Lieberman suggests opting for game nights, potlucks, or wine nights at home with friends and family. Many cities offer free entertainment, such as outdoor movies in the summer or Shakespeare in the park. Check your city’s events page or the website of your local destination marketing organization for a list of free activities.
Joining Loyalty Programs
Trae Bodge, a smart shopping expert at Truetrae.com, advises joining loyalty programs wherever you shop. “They offer benefits like discounts or the ability to earn points,” she says. Bodge cites the CVS ExtraCare rewards program as a personal favorite, which provides exclusive sales, personalized deals, rewards, and 2% back in ExtraBucks Rewards on most purchases.
Selling Your Stuff
Bodge suggests looking through your closets or basement twice a year for items you no longer need but may be valuable to others. Selling these items can help you save money and declutter your space. Platforms like MPB.com specialize in buying and selling camera and videography equipment, making it easy to turn unwanted items into cash.
Avoiding Keeping Up With the Joneses
If you’re on a tight budget, trying to match the spending of friends or family with more money can be financially harmful, Bodge warns. “If you’re spending more to keep up with others, start setting healthier boundaries,” she advises. Understand that their budget may not be the same as yours.
Reviewing Your Budget to See Where You Can Make Cuts
Abby Wendel, former president of consumer banking at UMB Bank, recommends reviewing your budget by tallying up all your expenses by going through your financial statements. This process helps reveal where you can reduce spending and prioritize expenses.
Automate Your Savings
Automating deposits from your paycheck into a savings account can reduce the temptation to spend money earmarked for savings. “This habit makes saving effortless, and you’ll see your savings grow without noticing the money missing,” Wendel says.
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Shopping Store Brands
Store brands often offer the same quality as name brands but at a lower cost. “The grocery store’s brand can be less expensive, and the quality is typically the same,” Wendel notes. Stick to your shopping list and meal plan to avoid food waste.
Checking Your Utility Bills
With rising energy costs, utility bills can increase significantly. Wendel suggests checking if your utility provider offers assistance programs or payment plans to help you budget better—contact utility companies to see if you can negotiate your bill, especially for cell phone plans. “There might be parts of the plan you’re not using but still paying for,” she says. Review your bills carefully for opportunities to reduce costs.
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Reducing Unused Subscriptions
Review all your current subscriptions, from shopping to entertainment, advises Wendel. Recurring costs you forget about can impact your budget significantly. Take inventory of your subscriptions and see if there are any you don’t use or could pause for a while.
