Living a frugal life does not only mean to stop fulfilling desire but to live within the means. All you require to live a frugal life is to have patience and being attentive. This may sound a little tricky to you, but it is easy when a few simple tips are being followed. Given below are some of the ways that will give you a clear view on how to live a frugal life.
Go by Budget:
One of the key factors to live a frugal life is budgeting. It is necessary to form a budget each month and abide by it in order to avoid any kind of financial deficit. Note down all the sources of your income and expenses to find out if the latter is more than the former. If so, determine the expenses that are easily avoidable. This will help you to live within your means and save some cash for future.
Need Over Want:
Always give priority to your need over the want. While shopping, always determine whether you really require the item or can be easily do without. Compile a list of items that are necessary and keep it handy while shopping. Abide by the list at sternly to avoid any kind of impulsive shopping.
Cut Down on Entertainment:
One of the best ways to live a frugal life is to cut down on entertainment. For example, avoid going to a movie theatre or coffee shop every weekend with family or friends. Instead, watch movies at home with a cup of brew and cookies. Similarly, you can also cut down your cost on expensive magazines. Acquire information from the internet instead of going through expensive travel magazines and style magazines.
If you can think that cutting on expenses are not enough, you can always earn extra. If you are specialised in subjects like finance or economics, you can earn a good amount by taking tuition. On the other hand, writing web content is always an option if you have a flawless skill of writing. This will not only help you to brush up your skill of writing but to earn considerable amount each month.
Earning extra is of no use unless you invest it in a proper way. So quickly invest that extra amount in SIPP (Self-Invested Personal Pension). It is a type of UK Government-approved personal pension scheme which allows you to invest at your own decision. Unlike other pensions, SIPP permits you to invest almost anywhere and choose your own investment. Not only this, it offers upto 45% tax relief on contributions and has no capital gains tax or further income tax to pay. When you contribute towards the pension, the government adds upto 20% basic rate tax relief. This means, if you invest £8000, the government will add £2000 tax relief, increasing it to the total contribution of £10,000.
So, make sure that you start living a frugal life and invest the extra amount in Self-Invested Personal Pension to have a secured life in future.