There are many reasons people struggle with saving money. Many factors that we are sometimes are unaware of. In this article we will discuss some of these reasons. 11 reasons you are struggling to save money 1.Cost of living It would be an injustice to talk about saving money without acknowledging the cost of living. The inflation rate keeps rising which means prices are hiking while our income remains the same. High costs of living, such as housing, healthcare, and education, leave little room for saving after meeting essential needs. 2. You don't Budget (or stick to it) A budget is to your finances what water is to your body. You might survive a day or two without it but in a long term you will feel the effects. Without a clear budget, it's challenging to track income, expenses, and savings. Overspending becomes common, making it difficult to save 3. You live beyond your means Spending more than you earn will leave you with nothing to save. Spending more than w...
There are many misconceptions about frugality. Often people equate frugality to being cheap. Or a huge life sacrifice that sucks the joy of life out of you.
Frugality does not mean cheap. It is not forgoing quality and letting go of all your favourite food. It is rather an intentional way of spending money. It is accounting for all your cents and prioritizing your costs. For example, you can spend less money on food and start saving for a holiday. It is for this reason that frugality differs from one person to the next. There are different approaches to a frugal lifestyle depending on why you chose the lifestyle.
How to start living frugally?
The key to a long-term frugal lifestyle is to not overdo it. do not go overboard with frugality and drown yourself in unrealistic expectations. Starting slow is the key. Making small changes in your everyday life. Finding what works for you and keeping an open mind. You will eventually have to give up a lot of things, but it is important to focus on what you are gaining.
For example, I love body lotions. It was difficult for me to give up some of my lotions, but I had to remind myself of the road trip my sisters and I were planning. For me to afford that road trip I had to let go of the lotions. but focusing on why I was on this journey helped a lot.
Is frugality worth it?
I get asked this question a lot. The answer is a big YES. YES, it is worth it. There are many benefits to frugality. The most prominent one is the financial freedom that comes from it. when you are intentional about how you spend your money, there will be a change in your finances.
Financial freedom comes from eliminating unnecessary expenses and frugality affords you the mental space to do that.
The benefits of frugality in South Africa
1. You think strategically
When you are intentional about how you spend your money, you are bound to think strategically. Frugality propels you to think long term. To think beyond your flitting desires. You will find yourself weighing your options and questioning everything. Questions like “why do I need to pay this much for this little?” will become part of the decision-making process.
You plan your grocery shopping. Where you shop and what goes into that shopping trolley makes a huge difference. The shopping centre that’s closer to my place has two supermarkets. Whenever I go shopping, I go through their sales to check what’s cheaper where.
The process is something like this: two sales pamphlets in one hand and a grocery list in another. I tick where am buying what. I compare the prices. I know the difference between R0.79c and R0.99c. While it doesn’t seem like much, it adds up.
2. You’ll have less financial stress
If there is one thing that this year has taught me, it is the importance of saving. We live in a country where R200 electricity units are less than 150, in a rural area. I shudder at the thought of what it is like in the urban areas.
If you do not understand the significance, electricity is way cheaper in rural areas.
As a student, I understand how it is like to just have enough to cover the basics. I’ve had months whereby the 10th all I had was enough food for one, that’s if I cooked the right portions.
I don’t know about you, but 90% of my stress is caused by money. I am one of those people who needs just a few thousand Rands to solve my problems. I know. it is pretty strange that the woman writing about frugality does not have money and still have money problems. But frugality is a journey and not a destination.
With frugal living you spend less and have more left to save.
3. You’ll develop new (or forgotten) passions
Isn’t interesting that we are led to believe that all the fun things require money. That in order to enjoy ourselves we have to be willing to spend money. From social media to our communities, fun is often equated with something that requires money. No one tells you to spoil yourself by taking a walk. Or run a marathon. Or anything that costs nothing.
I know it seems lame or boring but there must be something that interests you that doesn’t require spending. When you do not spend money to have fun, you will definitely develop new interests that do not require much.
There are way more reasons to be frugal. These are just the top three for me.