To live cheaply, you need skills and ways of thinking that help you take advantage of the ways to save money that come up in life. These are habits of a really thrifty person. Here, we'll talk about six of these habits. These are skills that you can learn in a day or two and turn into habits in a few weeks. Then they'll save money for you for the rest of your life.
To live cheaply, you need to know what's important. How can you buy a car at a good price if you don't know what a good price is? Make it a habit to learn about prices, especially before you want to buy something expensive. By looking at listings for sale for a few hours, for example, you can find out how much homes sell for in a certain area. This can save you thousands of dollars.
Find out what other people know. Most of us know someone who always gets the best deal on cars, boats, homes, and even groceries. Why don't you ask them how they do it? Someone will say that the cheapest cup of coffee in town costs $3, while someone else will say that it only costs 50 cents. Talk to the second person about coffee shops. People close to you can live well on half of what you do. Look into that. See what other people do, and you'll know what you can do.
Living cheaply means always looking for other ways to do things. You might have just as much fun on a cheap trip to Mexico as you would to Jamaica. You might like pizza more than fancy French food. If that's the case, why not call Domino's instead of going to a pricey restaurant? This isn't about giving up anything, but about getting even more of what you really enjoy by paying less for cheaper alternatives that work just as well.
Pay money. What happens when the interest you pay over the years makes everything you buy 20% more expensive? You can't get as many things. When you pay cash instead of credit, everything is cheaper. If you want that new patio set, divide the price by the number of weeks you can wait. Set aside that much every week, and when you have enough cash, buy it. When you pay cash, you save money on interest and often get a better price.
Figure out how to do math. Did you really save $400 on that car if it costs you $500 more in gas every year? Did you know that some stores take advantage of the fact that shoppers think that bigger is cheaper? That's right. The price of that gallon of pickles might be more than the price of four quart jars. If you want to save money, make it a habit to do the math.
Let people know what you want. Mention it when you talk. Just by talking, many people get free or cheap things. For example, a neighbour wanted to upgrade her living room furniture and was thrilled when I offered to take her three-month-old couch off her hands for $30. I'm really glad I said I was looking for one. You should add this little trick to your list of ways to save money.