Five money-saving habits of frugal people

woman practicing frugal habits

Being frugal doesn’t mean living a life of deprivation. It’s more about making small, but wise, choices that eventually lead to building your savings.

Frugal individuals have mastered the art of managing their finances efficiently, allowing them to save money while still enjoying a comfortable lifestyle.

If you’re looking to adopt money-saving habits, here are five common practices of frugal people that can help you keep more money in your pocket.

Prioritising saving and investing

One of the most essential habits of frugal people is their commitment to saving and investing. Rather than spending all their income, they prioritise setting aside a portion for savings and investments.

They understand the importance of building an emergency fund to handle unexpected expenses without derailing their financial stability.

Budgeting and tracking expenses

Frugal individuals know the importance of budgeting and tracking their expenses. Creating a detailed budget allows you to allocate your income to different categories, such as groceries, utilities, transportation, or entertainment.

By having a clear understanding of their financial inflows and outflows, they can identify areas where they might be overspending and make necessary adjustments.

Start by listing all your sources of income and fixed expenses. Then, allocate specific amounts for variable expenses based on your financial priorities. Regularly tracking your expenses, either through budgeting apps or old-fashioned pen and paper, helps you stay accountable and make informed decisions about your spending habits.

Seeking out deals, discounts, and coupons

Frugal people are masters of finding deals, discounts, and coupons to save money on their purchases. Whether it’s groceries, clothing, electronics, or travel, they actively look for opportunities to stretch their dollars further.

Online shopping has made this even more accessible, with numerous websites and apps offering exclusive deals and discounts.

Before making any purchase, take the time to compare prices, check for promotional offers, and search for applicable coupons.

Consider signing up for loyalty programs and cashback websites to earn rewards or get money back. Being patient and waiting for seasonal sales or special promotions can also lead to significant savings over time.

Embracing a DIY mindset

Embrace a do-it-yourself (DIY) mindset to save money on various tasks and projects. DIY projects can significantly reduce expenses, as labor costs are eliminated, and materials can be purchased at lower prices.

Learning new skills through online tutorials or workshops can empower you to handle simple repairs, create homemade gifts, and even grow your own fruit and vegetables.

Additionally, embracing a minimalist lifestyle and reusing items whenever possible can further contribute to cost savings.

Making smart choices on big purchases

Approach significant purchases with careful consideration. Don’t rush into buying big-ticket items without thoroughly researching your options first. By doing extensive research and reading reviews, you ensure you are getting the best value for money.

Consider buying second-hand or refurbished items, especially for products such as electronics and furniture, which can significantly lower costs while still providing quality products. Delaying non-urgent purchases until sales events or discount periods can also help secure better deals.

Remember, it’s the small daily choices that add up to significant savings in the long run, so start incorporating these habits into your life today and watch your savings grow.

Would you consider yourself a frugal person? Do you have any tips for saving money? Let us know in the comments section below.

Also read: How pricing psychology tricks you into buying more

Written by Brad Lockyer

Brad has deep knowledge of retirement income, including Age Pension and other government entitlements, as well as health, money and lifestyle issues facing older Australians. Keen interests in current affairs, politics, sport and entertainment. Digital media professional with more than 10 years experience in the industry.


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  1. Brad, thank you for these financial insights. After two world wars that put most if not all countries in huge dept the people had no choice, but to live frugally or to put it another way – to live within one’s needs. Wages were low and ration books were slowly disappearing. Living with others, with mum, dad and children sleeping in one room was a common way of life, so as to maintain a roof over one’s head.
    Mum and dad had learnt to make do and brought us children up the same way. We learnt to grow some of our own food and how to fix and repair most things by our dad. Mum would divide the weekly wage, by putting money into differently labelled jars or tins. For example; rent, electricity, coal, food and so on.
    Mum had a special tin for saving a few pennies whenever possible, which was used to provide a Christmas present for us children and something special for Christmas dinner. Birthday presents usually consisted of a new clothing item. A pair of shoes, a pair of pants or a pair of socks and new undies. I remember my dad giving me a penknife for Christmas the year I turned seven. I’ve still got it and treasure it. Look after the pennies and the pounds would look after themselves was one of mum’s special sayings.
    The local neighbourhood children played a variety of games together; making our own fun as we played. Any new children that moved into the neighbourhood, were always welcome to join in and soon learnt to tag along with the rest of us to discover our local haunts. Being inclusive was just a way of life and was never thought about as being something special.

  2. Out of our pension, I put aeay $150 a fortnight, that covers Rates, water and power, When the bills come iin, I can pay them withour a problem. The rates are paid quarterly here in Tassie .

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