Frugal Living: Saving and Budgeting Doesn't Have to Be Painful

Mention the words '"budget" and "thrift" and too many people automatically think of "deprivation." But saving money doesn't necessarily mean depriving yourself of the good things in life. Thriftiness and frugality are simply different ways to use the resources available to you.

When you sit down and assess what you truly want in life, you may find your resources aren't going toward what is most important to you. Look closely at where your money is being spent - you might find you're spending a lot of money for things that don't return much value for the dollar.

By using creativity to find new ways to use what you have, new sources for the things you need, and new ways to achieve your goals, you can get more enjoyment for less money without suffering or feeling deprived. You may not want to cut corners in all areas of your life, but you can learn to start cutting unnecessary expenses and adding to your savings.

When you want more money, there are two basic ways of getting it: generate more income or cut expenses. Generating income may involve selling something or getting a second job. Working more means giving up time with family and friends, plus it requires a physical effort in order to get a larger paycheck. Money-generating strategies are important, but with a budget the main focus will be to cut some expenses in order to have more money to spend on the things you really want.

People are frugal for different reasons. You may need to scrimp and save in order to afford basic necessities such as food and shelter. You may want to cut corners so that mom or dad can stay home with small children. Maybe you enjoy expensive hobbies such as boating or skiing or you like to travel and eat out at fancy restaurants. You may have a specific savings goal: money for your children's college or the down payment on a home.

Whatever your reasons for wanting to cut expenses, saving will be easier if you keep your goal in mind. Find a picture that represents your goal: a house in the suburbs, a student with a diploma, a new sports car. Frame this picture and put it in a prominent place or tape it to your refrigerator door. Whenever you feel like slipping back into old wasteful habits, look at this picture and remember your goal.

Get the whole family involved. Are you saving for a family vacation? A down payment on a house? Borrow a popular fund-raising strategy and make a chart to track your savings. Make it easy for everyone to see your progress. Consider rewarding yourself at various stages along the way.

For instance, if your goal is to save for a house, buy one item for the house every time you add another ten percent to your savings account. Make the items small, such as dishtowels for your new kitchen or a switch plate cover for your child's new room. If you're committed to frugality so that mom can stay home with small children, reward the family with something that honors that goal - such as a family picnic in the park.

By taking small steps and really paying attention to what you're spending vs. what you're saving - and in what areas of your life - you'll be much more likely to move forward with your frugality goals.