Habits of Frugal People

Some people are naturally frugal. They’re savers. They spend less money and they’re happier for it.

I’m not one of those people. Which is exactly why I wanted to do a round up of the top 10 habits of frugal people — so people like me can learn from these frugal-nistas.

So, here’s a look at the top 10 habits of frugal people. Whether you’re a spender or a saver, you’ll find ways to be more frugal from this list (read: be happier and have more money).


1. Set financial goals

Frugal people value their money and want to hold onto it. Setting financial goals helps them accomplish this.

I created Dream Year (my goal-setting workbook) for my readers to set goals the right way. This will help you actually achieve your goals and feel good doing it.

Financial goals will give you a roadmap to where you want to go financially (instead of just wandering).


2. Come from a place of “do not spend”

Frugal people come from a place of “do not spend”. If they’re on the fence about something, they will err on the side of “no” (whereas the spender would do the opposite). Frugal people find ways not to spend money. They would rather see money in the bank than new clothes in their closet.

If you are spending too much money, trying saying “no” to yourself once a day. The more you do it, the easier it will become. Track your progress and celebrate your wins so you’re able to build momentum and enjoy saving money by not spending it.

I am such a spender at heart, but over time, I have learned to come from a place of do not spend. I really don’t even think about spending anymore, whereas a few years ago it was very hard for me. The more you practice not spending, the easier it becomes (like most habits).


3. Use coupons and shop deals

When frugal people spend their money, it’s at discount stores with coupons. You usually won’t find frugal people at high-end stores, where things are overpriced..

If you get in the habit of shopping at discount stores and with coupons, you can save a lot of money (this is really helpful if you’re trying to lower your expenses).


4. Always live below your means

No matter what, frugal people always live below their means. They have “financial margin” as I like to call it. There is money left at the end of the month.

Frugal people value keeping their money – not spending it. If you are not living below your means (or you’re living paycheck to paycheck), I recommend that you start budgeting asap.

If living below your means is hard for you, you’re not alone! With a little help and persistence, you can change this and get ahead. I cannot tell you how good it feels to have money in the bank and financial margin every month — it’s worth all the sacrifices it takes to get there.


5. Don’t eat out often

Frugal people are really selective about eating out. They either eat out very infrequently or they eat out very inexpensively. Either way, frugal people are not splurging regularly at fancy restaurants and more than that, they are aware of how much money they spend eating out every month.


6. Shop at discount grocery stores

Frugal people find ways to get good food inexpensively. They value good quality food but they know they don’t have to pay a lot for it.

Sometimes it takes a little creativity to find where to shop for less, but this is an excellent way to lower your expenses.


7. Buy second-hand

Frugal people don’t spend a lot of money on material things that they can get second-hand. Anything that isn’t a high priority on their value-list (like clothes) is something that frugal people will try to buy second-hand.

This is a hard habit for someone who is a spender. But like anything, practice makes perfect. If you start buying second-hand, you can get used to it over time. This is something that you have to decide whether to do in terms of your financial priorities.


8. Make financial decisions as a family

Frugal people value money, so they make financial decisions as a family. Frugal people take time to make sure everyone is on the “same financial page” and prioritize their financial health as a family above material things. Financial decisions are taken seriously and frugal couples work together to make sure they’re on the same financial page.


9. Have a plan

Frugal people have a plan. They know where they’re going. They know why they’re frugal. They know their values and make financial decisions in line with those values.

Use budget spreadsheets to create and implement a financial plan that move your toward spending less and living better.


10. Prioritize financial health over “things”

Frugal people prioritize their financial health over material things. Suze Orman says “people first, then money, then things.” Frugal people live their lives by this. Financial well-being is a top priority for any frugal-nista.


A Final Note!

The top 10 habits of frugal people that I listed above show you what you can do to live on less money and be happier doing it.

Frugal living is a lifestyle that means finding creative ways to spend less money.

Most frugal people love how they’re living. Of course there are exceptions, and some frugal people won’t do every habit listed above, but in general, this is how frugal people live.

The good news is that even if you aren’t frugal, you can use these habits to get your finances in order. If you are in debt or need to decrease your expenses, these habits can help you accomplish this.