How to be FRUGAL and HAPPY

You may have come across people who are frugal before, people who have a closer relationship with their food, time or money than most people. Avoiding a life of luxury and buying new phones, laptops or cars when your old one did just fine.

Frugality isn't about limiting yourself in how much fun or joy you can have in your life, it's about moderating what matters and living life to the fullest with what you have. You can live life to the fullest without a new designer handbag or a Starbucks every day.

Most of the time we want something new because we don't get the buzz from the old thing anymore because we've had it for a while but the greatest thing about frugality is that you're still in control of your life. It's about being wise, do you really need a new car or do you just want something different, to smell the scent of a new car or show off?

Being frugal is a way of life, it's something you have to adapt to and makes changes for. Be smart about the choices you make - how often you eat out, subscriptions you have but don't use or 'treating' yourself every day to trick yourself into getting something you know you shouldn't because you're trying to save money.

Here's my thoughts to help with being frugal while being happy

1. Be intentional with everything you spend

Make sure you're getting a good deal, don't go for luxury just because you have the money to do so, and don't buy it unless you really need it (not want).

2. Start a budget

Having a budget will allow you to manage your money but at the same time allow yourself a certain amount each month to spend on the things you love, it'll help you appreciate them more. There is nothing wrong with splurging every so often but make sure you save to cover it or it's an investment in yourself. Set aside a certain amount of your pay each month automatically without a second thought which goes towards saving or investments, then the rest you can spend.

3. Buy used

I'm sure it may cross your mind often about getting a new car but the reality is that the 'deals' are often not as good as they seem and as soon as you leave the dealership, it's already lost value without even putting a mile on it. Buy used and save the rest of the money. Most importantly, buy a car you can afford. Take into account the cost of fuel, insurance, taxing it and any other maintenance work which may need to be done to it.

4. Evaluate your subscriptions

Take time to go through the subscriptions you have and remove any which you don't need or use often. Help your budget by allowing yourself a certain number of subscriptions a month and limit it to that number. If you want a new subscription, you have to give up one of your current ones so you can do it.

5. Get rid of bad debt

If you have a car loan, a mortgage, personal loans or any other type of debt, focus on paying it off. The longer you keep the finance/loans, the more you're going to be paying back with interest, so it's in your best interest to pay it off as soon as you can. If you struggle with paying off loans, keep a certain amount of your pay each month aside and set up a direct debit to pay it back. Work from the smallest amount owed to the largest, known as the snowball method.

Book recommendations:

Your Money or Your Life - learn how to become conscious of the movement of your money so it provides maximum fulfilment and how money is life energy.

Rich Dad Poor Dad - learn how it's not always about how much you earn, but what you do with the money you earn which will make you rich.

The Minimalist Home - have problems thinking straight to get your life on track? Consider minimalism, with this book helping you get decluttered and to refocus on life.