Today, we’re not experiencing famine, but many are experiencing different financial constraints. This is a period to buckle down and really review your personal finances. As Dave Ramsey states on his website, if you’re in this situation, it’s okay to pause the Baby Steps. The priority is now keeping the lights on. If this is your situation, take courage and know that this too shall pass and our heavenly Father will always provide (Matthew 6:26-32).

To help you cope and cut back on your expenses, I will share with you seven strategies to become a frugal spender: 

1. Evaluate Your Largest Expenses: For most of us, your mortgage or rent is your largest expense. Take a look at this, and evaluate if there is room to save. Consider downsizing or refinancing to historically low fixed interest rates (under 3%).  Another large expense is our cars and the expenses associated with them such as insurance and maintenance. Consider getting rid of that extra car that is rarely used. 
2. Review Insurance Policies:  This is the time to shop around and review quotes for the same coverage on your home, renters, auto, health, and/or term-life policies. Some multi-policy discounts offer a significant savings of over $500 across all policies, but the savings is not always the case, year by year. It’s a prudent practice to shop around annually.
3. Shop with a Purpose: Make a list of what you need and stick to the list. If it’s not on the list, it ain’t going in the cart. A bonus tip for grocery shopping: Don’t shop when you’re hungry. I’m guilty of this! One time, my wife Elizabeth sent me to pick up some groceries and I came back with only sweets, filling my reusable shopping bags with Oreos, chocolate chip cookies, and ice cream. When I got home, she asked, “Are we hosting a kids party?”
4. Activate Coupons & Cashback: You don’t have to be the “Crazy Coupon Lady” and save every paper coupon you see. Use sites and apps such as RetailMeNot to search for coupons at stores or online, before checking out. Last month Elizabeth and I went to Michael’s to buy arts and crafts for our girls, and pulling up the app saved us 25% on the entire purchase! It only took 30 seconds to click on the app and show the coupon to the cashier.  Another great feature is the cashback online purchases. Yesterday, I received a 10% cashback on a purchase at PepBoys.
5. Stick to Your Dining Out Plan:  Let’s be real, there is something about eating out and having an enjoyable experience without having to worry who will clean-up the kitchen.  But the issue is that this expense can get a bit out of control.  Depending on your budget, set a limit to the number of days that you’re allowed to order or eat out per week or per month. An adjustment here can bring savings of over 10-20%.  For folks that are not working remotely, pack your lunch Mondays-Thursdays and reward yourself with a purchased lunch on Fridays.
6. The Latte Factor:  More than 15 years ago, I came across David Bach’s book, The Automatic Millionaire, which changed the way I saw spending and saving. This strategy put into perspective the long-term cost of the daily $5 cup of coffee that I was willing to pay daily, ignoring the need to save. Let me explain: I’m not telling you not to buy that cup of coffee. What I’m challenging you with is this: Are you paying yourself first and adding at least $5 daily to your savings before considering spending on that cup of coffee?  If not, it’s time to brew your own coffee, saving you over $150 a month and $1,800 annually.
7. Embrace the Process: It’s one thing to be cheap and another to be frugal. Someone cheap cares only about price rather than value and quality. Keep that in mind when shopping. Price is not everything and buying in bulk may not always be beneficial. For couples that are budgeting together, there might be one that is more frugal than the other, but that doesn’t mean that the other spouse is off the hook. Managing your finances is a team effort.  If you’re single, ask a friend to hold you accountable. Have fun in the journey by allowing room for modest rewards at key milestones.

   I pray that you find these practical strategies useful, which can be easily tweaked and adjusted to your current financial needs. 

Helpful Resources

1. Dave Ramsey’s website: http://www.daveramsey.com
2. Cost-saving App: RetailMeNot
3. David Bach, The Automatic Millionaire, The Crown Publishing Group, 2003
4. Helpful tips on mortgages and refinancing: https://www.bankrate.com/mortgages/