If there is one question I get asked a lot, it has to be the question about how I got started toward this frugal life. The more I talk to people, the more I realize that people really do want to escape the stress of living lives filled with debt and money problems. The problem is, however, finding the place to start.
If you’ve decided to undertake a frugal lifestyle, you may find yourself in the same boat. It’s easy to procrastinate when you are ready to undergo a major overhaul of your life. Finding a way to break this huge task down into simple steps could help you get started down your new path.
Create a budget that allows you to live within your means. Your budget should include all of your regular expenses and your monthly debt payments. Remember to only plan to spend the money you bring home each month. If you run out of money before you run out of expenses, you’ll need to increase your income or decrease your expenses.
Vow not to use debt to finance purchases that don’t fit into your budget. A key component of any frugal life is the absence of debt (or a decreasing amount of debt). Once you eliminate debt from your life, you’ll find that living within your monthly income will be much easier.
Find extravagances that you don’t need in your budget. At first glance, you may think that there isn’t any wiggle room in your monthly expenses. I suspect, though, that a closer inspection will reveal plenty of ways to save money. Cutting cable or satellite television, for instance, can be an easy way to save money. Don’t take anything for granted as you evaluate your expenses, and you’ll find the fat in your budget.
Use cash or debit cards for all of your purchases. The temptation to use a credit card (with the hope to find a way to pay the bill later) is far too great when you’re just starting down the path to frugality. Pay with cash or a debit card to make your purchases feel more “real.”
Have a family meeting. Now that you’ve decided to live a frugal life, you should share your decision with the entire household. Tell the kids what you’re doing, why you’re doing it, and what the decision will mean to them. If you can get everyone on board to the plan right away, you will find it easier to encourage them accept the impending sacrifices that will be coming.
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Great post, however, I think you’re right and wrong. Yes, most people struggle to find the right place to start—when what they really need to do is just start!!!
I was lost in this step also for a few months before I was so sick and tired of being in debt that I just dove right in–it was the best thing I ever did.
I would agree @ David. Sometimes you just need to “just do it”. It may not be pretty at first and you’ll go through a lot of mistakes but if you’re committed to improving your finances, you’ll soon get the rhythm of how things should work.
I never did get why anyone should use a credit card (aside from online purchases). I’ve never seen something I could buy cheaper using a credit card rather than fast cash.