3 Ways to Save Money & Live a Luxuriously Frugal Life

By: Kristina Guerrero | Meredith Witthar Posted: 7:47 PM, Feb 26, 2018

What if you could save enough money to never have to worry about it again? We talked to the family who calls themselves The Frugalwoods about how to achieve financial independence. They left their jobs in the city for a simpler life in the country. Now they’re sharing three ways you can live a luxuriously frugal life!

1. Establish Your Goals

The first step to living frugally is establishing your goals. Liz Frugalwood says it’s all about identifying long-term goals. “[W]here do you want to be in ten years?” asks the mother of two. “Where do you want to be in twenty years in terms of your lifestyle, your career, and your finances? Think big and be really specific." For this family’s big picture included a 66-acre homestead in Vermont. For you it could be sailing around the world! Whatever it is, "write it down,” says Liz. “And if you have a partner, you need to do this together and figure out where those goals meet, and where they might conflict.” Once you establish your goals, you’re ready for step two!

2. Live Frugal for a Month

Next, try the family’s Uber Frugal Month challenge. It's free, and you can join by visiting their website Frugalwoods.com. Living frugal entails cutting out everything you don’t need. Look broadly, and consider your utilities costs. Should you be spending that much? Cut down on grocery expense if you're constantly overbuying and throwing food away. "Get to the end of the month, see how much you saved, multiply that by 12, [and] understand how much you could save in a year [or] two years,” Liz suggests. Then determine what you want to continue being frugal with! “Make conscious decisions to either add things back into your budget, or to keep them out and keep saving at that really high rate." The key is determining what’s “worth it” to you, which leads us to step three!

3. Find a Happy Medium

Finally, spend less on what you don't value. You can still have what you want – just make it a memorable experience. Liz mentions dining out as an example. Before cutting costs, she and her husband ate out frequently. Then when the couple started cracking down on their budget, they reduced outings to once a month. "Put those sorts of luxuries back in, but have them as a mindful luxury,” Liz recommends. This is called smoothing out the happiness curve.

For most people, saving money doesn't come naturally – but now you’re armed with three ways to live a luxuriously frugal life!

What money-saving tips can YOU share? Tell us on our Facebook page, @TheListShowTV.

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