Frugal living may be a term that is still very foreign to our ears and is not very popular in lower class communities.
In fact, the essence of the term frugal living actually describes the lifestyle of someone who likes to save money.
But hey, you're not stingy! Stingy people tend not to be able to choose what they really need and what they don't really need. In short, stingy people think they save money on all their spending.
In contrast to the concept of frugal living, it is more about delaying spending for something more important. Here there is a priority scale that takes precedence over a series of planned expenditures.
Several world-class business actors who apply this frugal living concept include Bill Gates, Mark Zuckerberg, Warren Buffet.
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Biil Gates, the main figure behind the Microsoft company, prefers to buy watches that cost $10 when wearing watches, even though his wealth reaches $132.1 billion.
Even with Mark Zuckerberg, when he gets married he prefers to hold it in his backyard rather than in a luxury hotel. Even though his wealth reaches $1 billion.
So those who apply the frugal living concept are people who prioritize the function and value of the items they want.
Benefits of frugal living
After we know the picture of the lives of a number of successful business people as mentioned above, of course we can know some of the benefits of frugal living
1. Make an investment
Measurable cash flow in terms of spending will of course save money. This is then gradually transferred in the form of productive investment in line with the increase in savings.
That means, in the long term we will be in a financial security zone so it is not impossible that when we are young, our income will be high.
2. Stress free
Stress can arise for any reason, and one of them comes from the things we buy. Usually the result of a pile of goods that exceeds the capacity of the house makes us dizzy in terms of arrangement.
Well, frugal living is synonymous with a minimalist lifestyle, where the things you buy are only things you really need.
So, here are some tips for frugal living according to the frugal living concept
Tips for saving money and being careful
Frugal and careful living is the basic foundation of the frugal living method because it is a golden bridge to financial security in the future.
1. Don't be diligent in buying non-essential items
One thing that makes us lose money when it comes to shopping is buying things that are not important. Even though I had initially made a shopping list at home, when I arrived at the store everything changed completely. We buy things that are not in the shopping notes that were prepared at home.
2. Avoid consumer debt
This is also a common human disease, like being in debt and then using the money to buy consumptive things. For example, buying guest chairs, cellphones even though these items are still available and functioning well.
Consumer debt will get us into financial problems, especially if the income is less than the amount of debt installments. There will definitely be serious problems that will be difficult to overcome and will make your forehead wrinkle all the time.
3. Make a budget and shopping list
This third tip is probably rarely used by people, because usually after receiving money that's when shopping comes to mind. For this reason, to avoid undirected spending, try to arrange in advance the expenditure items that are mandatory and cannot be postponed.
Such as electricity, water, wifi costs. After that, a non-permanent list is compiled. for example transportation costs, beauty treatments and so on. These two lists will really help us control the amount of spending each month so that we know exactly the financial position we have.
4. Allocation of savings to investments
Quoting from the djkn.kemenkeu.go.id site, if we have an income post every month then 20% is allocated for investment.
The complete income allocation formula is to use a division pattern of 40 - 30 - 20 -10.
40 percent of our total income is used for monthly needs whether they are mandatory or not, 30 percent is allocated for debt installments, 20 percent is for investment and the remaining 10 percent is for reserves.
That's a brief look at frugal living, hopefully it can be applied in everyday life.
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