Before anything else, let’s first acknowledge the fact that frugal people are not cheap. According to an article on Investopedia, people who are labeled cheap only look at the price, and don’t believe in value. Some cheap people wouldn’t even pay for the basics and necessities of life.
A frugal person on the other hand, is someone who is simply wise with their money – he is all about looking for ways to increase savings but he knows when to pay up, understands that an item that has good quality doesn’t really come with a small cost and believes in giving to worthy causes.
Now that we understand the difference between these two, it’s time for us to learn from these 5 habits that frugal people practice everyday, in hopes to improve our own finances too.
1. Frugal people don’t let anything go to waste.
Whether it’s food or certain essentials used at home, frugal individuals use everything right to the last drop. They empty out peanut butter jars, cut toothpaste tubes in half, extend dish soap and shampoo with a little bit of water, etc. They value the money that they pay all these things so they will never allow anything to go to waste.
2. Frugal people love to take advantage of community resources.
First of all frugal people already feel contented and happy just by being at home. But in case they want to go out, they take advantage of the free or low cost resources around them. Cities and towns offer several community events throughout the year, and libraries and parks are great resources to utilize and enjoy for free or at a small amount.
3. Frugal people shop for used items first before going for brand new ones.
Before a frugal person decides to purchase a brand new item, he/she will visit secondhand stores or go to sites like Craigslist, Amazon and ebay first for a chance to find a better and bang-for-your-buck-deal.
4. Frugal people repair things first.
Before throwing out a certain item, they will try to find ways to fix it first – mend clothes, repair appliances, fix broken furniture, etc. They make a keen effort to make the most of every item they bought, as much as they can, and won’t just easily and mindlessly toss it to the trash bin.
5. Frugal people think long-term when it comes to their finances.
Here comes the huge difference between frugal and non-frugal individuals. Frugal people are worried about their long-term finances, which is why they make sure to save as much as they can and put money aside for emergency funds. They don’t live like one day millionaires or live paycheck-to-paycheck.
You see, it’s all about the mindset, and we should all learn from them.
