Certain financial situations like unemployment, uneven economy and business loss affect finances and basic expenses. It also prevents you from saving enough for emergencies. Individuals starting a family, seeking options to buy a home, and marriage must wait. Identify the best ways to strengthen the finances first. It will help you analyse your financial potential and operate accordingly.
Alternatively, you must slow down some expenses until you get a better job. Check the aspects that may help you save more to sustain without worries. The blog details the strategies to live below the means by saving enough.
7 strategies for frugal living and saving money
If you are searching for ways how to live frugally and improve finances, you have landed right. The term frugality is associated with pinching pennies and depriving yourself of things that you love to do.
However, skipping life’s joys to save money is not required. It is more about making financial conscious decisions that help improve the money management. Just keep a simple fact in mind- SPENT LESS THAN WHAT YOU EARN. You can do so by analysing your finances and eliminating the extra expenses from your budget. Here are other strategies to live frugally until the situation improves:
1) Do things all by yourself
Well, you may not be accustomed to doing household chores all by yourself. However, paying a helper may not be an ideal situation here. Instead, try to figure out the best aspects that you can take care of without expert assistance. It could be cleaning the home or making some small fixes and repairs.
You may spot some old stuff while organising the home yourself. Check whether you may sell it to make some money. Additionally, analyse the unused items and check their validity. If you can use them still don’t throw them away. Such aspects help you know your home better and organise it the way you like.
2) Keep a “no spends” calendar
It is interesting to engage in no spending activity if living frugally. For example- if you don’t buy something on 28th January 2025, mark it in the calendar. Similarly, cross back the dates on which you don’t buy anything. It will motivate you to prevent spending on the days unnecessarily. Eventually, it will help you save more towards the important requirements.
However, you cannot decipher how much you may need under urgent circumstances. For example- you encounter a need for £2000 but you have only £150, then it may not help. Not meeting the need timely may lead to unfavourable circumstances requiring more money. Don’t worry.
You don’t need to pay extra when you can meet your needs every day. Explore the best rates on a 2000 loan in the UK marketplace. You may get it the same day without engaging in detailed documentation. You can use it to meet your critical needs and pay the instalments later as fixed monthly or weekly payments.
3) Set separate saving accounts for each need
It is one of the best strategies to save money by setting goals. For example- you encounter monthly expenses like- rent, utility bills, car fueling, etc. You can set up different savings accounts for these needs. It may seem like this:
| Utility bills | 4000 |
| rent | 15000 |
| Car repair and refuelling | 3500 |
You can walk consecutively, if not simultaneously while saving. You may struggle to save for these aspects at the same time. Thus, begin with the smallest amount requirement and then to the maximum one. Check the possibilities to negotiate high-cost bills like rent for a while. The landlord may agree if you have been a good tenant. It brings down your liabilities significantly and promotes easy savings.
4) Avoid ordering food and prepare it at home
According To Nimblefins, “ The average money spent on food per person is £42/week. This translates into £182/month. It includes groceries and dining out. Moreover, a family of 3 spends £536/month on food. Out of these one spends £400 on just groceries. The statistics are surprising. You cannot continue to spend £500/month on groceries and food alone. Practice buying in bulk for items with a good shelf life.
Check the best timings on which you can comfortably prepare the food yourself. It helps you maintain health and hygiene. Eventually, you can save up to £300/month just on food. Prepare the meal plan for a week and buy the groceries. It avoids the instinct of food ordering or dining out.
5) Control your overspending habits
It may be hard to control your overspending habits, but you must. Preparing a budget may help you exercise effective money control. Identify your most critical requirements and save towards that only. If you can, continue minimal payments on small debts like payday loans, overdrafts, or credit cards. It is better than paying nothing. You can also make it an adventure by rewarding yourself for each penny you save after your financial situation improves.
For example, you save £132 in a month by practising good financial habits. Later, you can reward yourself with this £132 by having a treat or using it for the most essential purpose. This technique will motivate you to save as much as you can.
6) Find the best ways to save on utilities
If you struggle to manage your payments at once, check the government benefits. You may spot some grants and help that may help you reduce such costs. For example- with Housing Benefit, you may get help with rent or mortgage. Identify how much you can save with the scheme.
If helpful, check the eligibility criteria and apply. What could be better than saving a few bucks on shelter and housing amid the crisis? Check whether you can save on gas and electricity as well. Yes, some programs from the authorities may help you save. However, if you have not paid the dues for 4months or more, you may not qualify. Check the best ways to clear the dues first.
You may not have the cash backup to clear the dues. Don’t worry. You may clear or consolidate dues. For example- if your total pending bill amount is £3000, get a 3000-pound loan and settle the dues. Yes, you can pay different bills at a time with this loan. You may get it even if you are unemployed. However, you must meet the essential affordability criteria. You can also apply with a guarantor if you lack any valid income source.
7) Carpool or use public transport
If it is challenging for you to maintain motorbike or car repairs and re-fueling, seek alternatives. You can save money on such aspects by using public transport. Moreover, having bus cards, student identity proof and other identity documents may help you get a free ride.
Yes, you may be fortunate enough to get that. If not free, you can certainly bag travel discounts. You may need to commute for interviews or in search of better investors. Whatever the need, explore the best ways to save money on commuting to other locations.
Bottom line
If you want to live a frugal lifestyle given the challenging financial situation, the above tips may help. Identify the reasons for the financial lag. Check what can you do to better up the situation and sustain your living. Reduce unnecessary expenses and use the money towards the needs. Check whether you may qualify for government assistance programs or help. It will help you bring the costs of living drastically down. It promotes more savings and helps you get back on the financial wheels.
