FRUGALITY; HOW TO?

                                  

Being frugal is a lifestyle, it is living better for less, so that when those financial crisis moments comes, you can weather it without stress, knowing you have both savings and the practice to live well within you means.

There is no guarantee that a particular method to being frugal would work for everyone, However it is the responsibility of each individual to make a decision on what method to follow and discover what  works best for them.
These decisions can lead to savings of few naira, a thousand or millions of naira;' He that is faithnful in little is also faithful in much'

1. Note your spending;

 Keep an eye on your spending. Most times you cant plan to spend less unless you know what you spend now. You can achieve this by having a small record of what you spend write down every kobo spent and what it was spent on daily. this would help you in planning. I do this often and it has really helped in my monthly budgets.

2. Review your spending;

Every expense is fixed, variable, or discretionary. Fixed expenses are mandatory expenses that are always the same and cannot be influenced by your decisions. Examples include rent and health insurance. Variable expenses are mandatory expenses that you can influence the cost of. Examples include utility bills and transportation costs. Discretionary expenses are expenses that could be eliminated entirely if needed. Examples include alcohol, entertainment, and restaurant meals.

 Also the importance of keeping a note of your spending is felt here, it helps you to eliminate real needs from just mere wants. You analyse where you are spending more, if there are alternatives that costs less.

3. Reduce your spending:

• Cut back on or eliminate discretionary expenses that do not provide you with pleasure. For example, do not participate in the office gift exchange if you do not enjoy it.
• Reduce discretionary expenses For example, having a date night at home watching movies rather than going to the cinemas.
• Think of ways to cut your variable expenses. For example, would you buy a car that consumes less fuel over a bigger car that consumes more? would driving to work be cheaper than joining the bus?
• Reduce your spending even further; Every budget has a little fat. Trim yours slightly more. Incorporate a new tip every few weeks. Decide what works for you and stick with it.

4. Stay away from debts:

 It may be wise to eliminate all discretionary spending until you are out of debt. Interest on debt does not provide you with pleasure, and going into debt is optional.

 Work out how much you need for spending on food, fuel and fun for the month - this is after you have paid bills and transferred savings.Try to live on less than you have budgeted for each week - treat it as a competition with yourself - saving money starts to become addictive, but it is important once a month to do something nice that doesn't cost too much, so budget for this too - go to the cinema; have a meal out; brunch with friends or family; pay for a gym subscription or something else that floats your boat - always go dutch.

5. SAVE!!!

 No matter how little, always save something.