Being frugal gets a bad rap. It is often confused with its less forgiving cousin, being cheap. I love the distinction between the two in this article by Stefanie O’Connell: “Being cheap is about spending less; being frugal is about prioritizing your spending so that you can have more of the things you really care about.”
I experienced this in a recent conversation with my girlfriends; I mentioned something I didn’t purchase because I’m too frugal. My friend replied, “With those shoes!? You are NOT frugal!” But, frugality isn’t about always buying the least expensive item. Here are three ways that I live frugally:
Identify low-value budget categories to reduce (or eliminate). As I became more mindful about my spending, I identified several expenses that cost more than I was willing to pay. Your categories may differ; here is where I decided to reduce (or eliminate) spend. These changes freed saved me $540 monthly, creating another $6,480 annually to invest in financial freedom.
Cable Television: My television bill was over $100 and provided plenty of channels; In order to save money and give myself more free time, I cut the cord. I now watch far fewer shows, most of them on Netflix.
Dining Out: Restaurant meals had ballooned to nearly $400 of my monthly budget. I decided to break the habit of eating out regularly and instead treated restaurant outings like an event. Planning meals and creating easy options for breakfast and lunch contributed to my savings.
Housekeeper: My weekly housekeeping service was convenient but costly. My partner and I decided that we could roll up our sleeves and keep our own house tidy, investing a little extra time each week and saving significantly. I will occasionally splurge for their services, but not on a scheduled basis.
Expensive Cell Phones: Switching from a traditional cell provider to Republic Wireless allowed us to keep great connectivity, without confusing contracts and expensive plans. There’s a misperception that pay-as-you-go plans are less reliable; in fact, many run on the exact same networks as the big guys. Like all cell services, your coverage may vary, but I’ve been a very happy customer for years.
Optimize entertainment expenses. For anyone near a large city, the wide availability of shows, events, speakers, and entertainment can be a huge benefit. I really value these experiences and in DC area we are fortunate to have amazing entertainment venues alongside Smithsonian Institution museums that are completely free (though they welcome donations). Every now and then, I’ll splurge on tickets to an amazing Kennedy Center performance, but I’ve found that free and low-cost events fill my entertainment need without breaking my budget.
I’ve nearly eliminated some entertainment costs; I am a huge reader and intentionally use the services at my local library to reduce my spending on books and magazines. My library also offers great programming and workshops. I’ve taken free classes on everything from gardening to personal finance.
Local wineries in the metro DC area are also of increasingly high quality. Wine Enthusiast covered some of the leaders in Virginia’s wine scene and visiting local wineries is one of my favorite lower-cost outings. Many wineries allow you to bring your own picnic lunch, and after a few dollars enjoying a tasting, I select my favorite bottle and enjoy it with a homemade charcuterie platter.
Finally, I live frugally by learning new skills. There are two areas where this has helped me save money. First, I learned to cook! I actively rejected learning to cook for years because I had an irrational fear that it would make me too domestic. This all changed in 2015 when I got fed up with boring dinners and tried Blue Apron after a colleague’s encouragement.
My first recipes included Chicken Rollatini alla Cacciatore with Radiatore Pasta and Chicken Mole with Sweet Potatoes, Avocado, and Queso Fresco. These recipes intimidated me and initially took me forever to prepare. However, they were incredibly delicious and I kept customizing my deliveries and enjoying the satisfaction that comes with creating an amazing meal. Over time, I improved my confidence in the kitchen, became more skilled, and invested in a few key kitchen gadgets that made cooking a lot easier.
Learning to cook allows me to enjoy amazing meals at home, which means if I get a hankering for an amazing meal, I can often make it myself. My partner is a great chef but doesn’t enjoy eating out as much as I do, so it works out well that he can pitch in as sous chef (and do the dishes).
Additionally, my partner and I have developed our do-it-yourself skills. I grew up in a house where my parents tried to outsource as little as possible - so I was used to things like painting, wallpapering, landscaping, and installing tile. Mr. Financier often says the most valuable class he took in high school was a home improvement course, which culminated in each student building their own bathroom project, which included plumbing, electrical, and drywall.
When we moved into a house that we simply couldn’t afford (but bought anyway), being able to DIY saved us a tremendous amount. With so many fabulous resources available, we regularly build the knowledge and confidence to try ambitious projects. You can find a step-by-step tutorial for nearly anything. One of my favorites is House-Improvements, a YouTube channel and website run by an experienced contractor, Shannon, who is an excellent teacher.
When a home improvement project or repair doesn’t require the cost of labor, you can immediately pocket the difference, which can result in huge savings over time. You also get the priceless feeling that results from your own handiwork, something I feel anytime I look at the myriad of projects that Mr. Financier and I have completed around our home!
Those are three ways I live frugally, by reducing or eliminating low-value expenses, optimizing my entertainment spend, and learning new skills. I’m curious if you call yourself frugal...or if that’s a label you reject? If you are frugal, what tips would you share?
xoxo, Ms. Financer