Frugal home money mistakes to avoid helps beginning savers dodge traps. There are three reasons why we started to save money. We wanted to take vacations. We wanted to pay off our debt. Finally, as close listeners of Dave Ramsey we wanted a new legacy for our children. One that did not involve debt.
Furthermore, Frugal home money mistakes are pitfalls. Also these pitfalls will wreck goals, work against eliminating debt and change vacation ideas. The money mistakes to avoid include arrogance, complacency regarding financial situations, and adapting to comfort. Let me explain more below.
Arrogance about Finances
The mindset of not needing to save as much is a mistake. We have all been there. The frugal tips, and sacrifices diminish. Frugal home mistake number one is to change the frugal living lifestyle and start spending.
Eliminating debt is one of the biggest reasons that moms start on a frugal home journey. Even though the goal has been made the journey continues. Frugal home money mistakes will land a family back in debt. Make new obtainable goals that involve saving money.
Complacent Expectations
Money is a great asset. That green stuff opens all kinds of doors. Moreover, We live in the greatest country in the world. Our ancestors made all kinds of financial sacrifices that we do not have to make. This is the time to save. Being complacent is money mistake number two.
Frugal homes do not get comfortable. Complacency is a hazard. Thinking it is ok to spend a little more money now is dangerous. The single most important thing to remember is why. Why do I want to save. Look at the budget and remind yourself to not get comfortable being debt free. The comfort will lead to spending.
Use more of the mindset that we should just hoard money and not live life. Likewise, once some savings have been met the purse strings can be loosened a little bit.
Adapting to Comfort
There is a new comfort level that comes with the elimination of debt. A boulder has been lifted from the family shoulders. A burden no longer exists. More money can be put toward charities, goals, vacations, savings or whatever is important to the situation.
Deciding to go to a vacation that is out of budget and spending money on tickets for first class seating is adapting to comfort. Besides, loosening the money spending restraints too quickly is dangerous. Adapt to the comfort level slowly.
I like to experience some of the freedom we have from having no debt. We need a new driveway, I want to visit California, and it would be fun to shop without price tags once. Right now, we are not getting a new driveway, California is being saved for and will happen in a few years, and shopping at thrift stores will continue. I don’t want to make myself comfortable raising my spending level.
Frugal Living Choices
Choices we make now will affect our tomorrow. Spend and save along the way. Keep a good balance. Most importantly, find the middle to work for your family. Instead of cutting half of the grocery bill, making homemade laundry detergent, buying chickens, maintaining a garden, using kerosene lamps instead of electricity, realize it is too much. I am exaggerating a little bit. Living like a pioneer isn’t fun either. Second, don’t change it even when you have all financial goals met.
As your income goes up keep that one frugal home tip. Write down in a journal or notebook the intentions and plans that continue.
Importance of Tracking Home Spending
Conquering a frugal lifestyle for your family means tracking what you spend. The importance of this helps you to be conscious of where your money is going. If you don’t watch it, then it will be spent with no record. I use cash, and my tracking system is receipts. I also check my bank account. Using both of these methods helps me to keep my home spending under control.
At the end of each month, I verify my spending and align it with my budget. Any areas of overspending are marked with a highlighter to note for the upcoming month.
Necessity of Insurance Coverage
Proper insurance coverage is a vital frugal lifestyle tip. Not having enough insurance, or incorrect amounts of insurance is not cost saving. Getting the highest deductible sometimes isn’t always a bad idea. Again, most of this information is based on each individual situation. For instance, one year we had hail damage on our new car. We had set our deductible at $5000.00, and the bill to fix the damage was $5000.00. So, saving money on the deductible to get a cheaper rate each month eventually cost us $5000.00 to fix our car.
Weigh all of the options for insurance and this is one are to be frugal on spending, but not to a fault. For more tips and ideas on how to save sign up for my newsletter. Find me on Instagram for our daily updates of running a frugal home @momsarefrugal. As always if you have any ideas on new ways to save please leave them in the comments!
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