I’m coming to a more frugal mindset later in life.  I used to think, 'Oh it’s only a hundred bucks', but then I began thinking about alternative applications for that money and it began to hit home for me.  What else would that $100 do for me?  Help fund an IRA, pay down extra on my house note, go towards a special vacation?  Oh well then.  Thought about in those terms, I began to take more interest in saving on things that weren't difficult to do, or that I didn't really care about, or that didn't affect my quality of life.

Here I've shared some of those things with you and over a year they can add up to Real Money.

With the economy in such an uncertain state, the art of frugal living seems to be enjoying a rise in popularity.  In some people’s mind, frugal is synonymous with ‘cheapskate’ but, consider that this definition by Dictionary.com:  “economical in use or expenditure; prudently saving or sparing; not wasteful.”  Those sound like pretty admirable characteristics to me.  I’ve known a number of wealthy people in my day and most of them are pretty frugal about many things, especially when it comes to consumable items that have no investment value.  That would be things like groceries, clothes, furniture, etc.

If you incorporated some of these ideas, you might save as much as a few thousand dollars a year.  Just think what that would do for your IRA, or your house note, or going on a fun vacation!

Here are 6 tips to help you stretch your dollars further:

Drink more water.

It is better for you, and much easier on your pocketbook than sodas or other exotic bottled teas. The cheapest water is found at home and it’s called tap water.  Even if you don’t like tap water, you can use various filter systems that pay for themselves in a few weeks if you are a big consumer of bottled water.  Consider too the problem of all those little plastic bottles in our landfills.  Carry your own drinking bottle if you take a bag lunch to work.  If you must buy the small bottles of water, buy the store brand rather than the name brands.  Those buck a bottles add up.

Always shop with a list.  And stick to it!

You are less likely to buy things you don’t need by keeping your list somewhere like the fridge door and taking it with you on your once a week trip to the store.  Not to mention how much trouble it saves you when you remember you didn’t get the toilet paper you just ran out of.  This tip is particularly important when you go someplace like Sam’s or Costco’s.  Have you ever noticed that you always seem to spend so much there despite the fact their prices are usually cheaper?  It’s because it’s the unit prices that are lower (sometimes, you have to know your prices), but they come in bulk.  And, I’m convinced that part of their business model is you buying things you never would think of on your own because they seem so cheap.  That’s how you rack up that $175 bill.

Also, if you refuse to be brand loyal to items you don't have strong feelings about, you can save more.  That allows you to take advantage of sales and discounts.  Adds up.

Cook at home.

This includes taking your lunch at least 3x a week.  When you consider that an average lunch runs something like $7 to $9, your monthly brown bagging it could easily save you $12 or $13 a week which is close to $50 a month.  By cooking meals at home, you could easily save a few hundred bucks a month.  It seems to me like nowadays it’s hard not to spend $15 to $20 on a pretty mediocre meal.  Think of a $10 to $!5 savings per person per meal. If you’re in the habit of doing that 2 or 3 times a week, for a couple that’s a $60 savings a week.  Cut back on those lunches and dinners out and you’re talking real money here.  Save it for your penny bank or save to spend some of it on a really SPECIAL meal.

Creative entertaining.

Consider having a potluck with friends.  The cost is about the same as cooking for yourself, but it is oh so much more fun.  Have a theme night, Mexican, Italian, etc.   Be creative and combine the meal theme with a movie night (El Mariachi with those fajitas or the Godfather with that lasagna) and you’ve got a fun night for very little.  Or, skip the potluck, rent a few movies and have everyone bring something different, popcorn, those yummy mini Baby Ruths, Raisonets...you get the picture.  How much money would that save you save off the average $30 movie night you spend going to a theater and buying popcorn and a drink??  Don’t forget card and board games.  I’m telling you, these can be fun!  Cranium is a blast!

Buy secondhand.

Ok, maybe you’re a bit squeamish about buying something like mattresses or clothes secondhand.  I used to think that for clothes (not for mattresses though--yuk), but listen up. I had a very formal event to go to recently and didn’t want to spend a few hundred dollars on a dress so I went to a designer outlet where some things were overstocks and others gently used clothing.  I got a lovely black velvet and lace long gown that fit me like it had been made for me, AND a quintessential ‘little black dress’ (Ann Taylor, brand new, priced at $24).  It so happened they were having a 20% off sale that day as well.  Both dresses together cost me $56.  That is hard to beat.  

Buying certain other things makes perfect sense:  books, cars, some furniture.  Consignment stores can have quite nice furniture for much less than new.  And furniture is strictly a consumable item for the most part, it is worth very little if you want to sell it.  Antiques may hold their value better, but my experience is that it’s still very hard to get what you paid for them should you tire of them.  Books too are strictly consumable items.  Half price books or the used books on Amazon can save you lots of money.  New cars depreciate several thousand dollars as soon as you drive off the lot.  Buying one that is 2 or 3 years old can save you thousands while still providing a reliable, long lived vehicle.  

Shop around on insurance.

All insurance policies are not priced the same.  By looking into your home and car coverage and comparing carriers, you could end up saving several hundred dollars a year.  Maybe your coverage is too much and you’re paying for what you don’t need.  Or perhaps by moving all your insurance to one carrier you get important discounts.  Take a defensive driving course and knock 10% off your insurance.

What are your favorite frugal tips?

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