Yahoo Finance Frugal Living Hacks: How To Live Rich on a Middle-Class Budget
While being middle class may mean having enough to get by, it doesn’t mean you can’t live a rich lifestyle. As GOBankingRates has reported, the spectrum of income to qualify for the middle-class ranges quite broadly, from around $50,000 to $150,000.
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Depending on where you live and what your monthly expenses are, your income might barely be leaving you with a few dollars to save, much less live more extravagantly. However, this doesn’t mean you have to give up living well.
Experts explain how, with some frugal living hacks, you can live as though you’re rich on a middle-class budget:
Choose Your Focus
The key to building a frugal living habit is knowing where to focus, said Adam Wood, co-founder of RevenueGeeks. “Spending and saving intentionally will help you build the life you want,” Wood continued. “Living on a small budget doesn’t mean giving up the good life.”
It is possible to eat well, travel abroad and dress like a million bucks without spending a fortune, he added. “The goal of frugal living is to minimize excess, maximize value, and remove desires that lead to debt.”
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Spend Less and Eat Well
You can eat well on a budget by shopping at local farmer’s markets. Wood said, “You’ll get the best prices by stocking up on what’s in season and shopping at the end of the day when farmers are more likely to discount their remaining supply.”
Freshly grown produce, Wood explained, can feel luxurious “when you eat an heirloom tomato at its peak.”
Take More Short Trips
If you find yourself overwhelmed at the costs and time off required for a long vacation, Wood recommended, “Consider taking short trips more often instead of taking an extended vacation. Plan a few long weekend getaways.”
Getting away for a few days instead of a week might also make it easier to unplug from work, he suggested.
Make a 30-Day List
Wood likes to make what he calls a “30-day list” to curb impulse buys.
“Put anything you want to buy on this list other than a necessity (medicine or food, for example). Make it a rule that you can’t buy anything for 30 days after you put it on the list. Stick to it. By using this system, you’ll buy a lot less.”
Join Homestay Organizations
For people who love to travel but don’t have a lot of extra funds to spend on it, Shel Horowitz, author of “How to Live Like Royalty with a Peasant’s Pocketbook” and founder of The Transformpreneur, suggested that you join at least one homestay organization (such as Servas.org and Couchsurfing.org).
“Not only can you save on lodging costs but you also get to make new friends and see a travel destination through the eyes of a local,” he said.
He said he’s been doing this all over the world, all the way back to 1983.
Volunteer at Entertainment Events
Do you love to see concerts or sports events but can’t afford them? Volunteer at these events.
Horowitz explained, “I’ve ushered for such acts as the Indigo Girls, David Byrne, Joan Baez, Blue Oyster Cult and dozens of others — and got to see the show at no cost.”
Revisit Your Subscriptions
David Kemmerer, CEO of CoinLedger, said the first thing he always tells people to do when reevaluating their budget is to take a look at their subscriptions/memberships, which can create a slow, subtle drain on the finances.
“Take streaming services, for example,” Kemmerer said. “Chances are, you’re only using 1-3 of them regularly, so you really don’t need to be subscribed to them all,” he urged.
Additionally, maybe you have a gym membership you hardly use that you could stop paying for.
“With the money you’ll save from all you unsubscribe from, redirect that amount to another category that you want to be able to live ‘richer’ in, like dining out.”
Negotiate Rates for Services
Yiannis Zourmpanos, a chartered certified accountant and senior contributor at Bountii, a site for online deals and coupons, recommended negotiating services you use regularly like insurance, utilities or memberships.
“From my experience in auditing utility bills, insurance policies, mobile plans and more, small tweaks can add up.”
For example, one of Zourmpanos’s clients was paying over $3,000 more annually than needed for their home and auto insurance. “After an audit, I was able to help them switch to a different provider offering the same coverage for thousands less simply by getting a few additional quotes.”
Beyond insurance, simple calls to internet or cable providers can often obtain better rates before contracts expire too, he urged.
Adjust Small Home Habits
Zourmpanos also found that by changing small daily habits at home, his clients can see fast savings.
“Adjusting the thermostat up or down just two degrees and installing programmable setbacks when no one is home trimmed $50 off the average monthly heating bills for another client.”
Similarly, switching to LED bulbs or lowering the temperature on their water heater incrementally shaved off costs over time.
Avoid Lifestyle Inflation
If you can live below your means and avoid lifestyle inflation, you’ll be surprised how much money you can save, Zourmpanos said.
“While bonuses or pay increases may seem like free money, it’s easy to unwittingly increase recurring costs proportionately through bigger homes, fancier cars or extra streaming services,” he added.
The most successful individuals he’s coached are the most financially disciplined. In one example, a former client got multiple promotions over a decade but didn’t change their spending habits. By diverting salary bumps to index fund investments instead, they increased their net worth dramatically. As a result, they were comfortably retired in their 50s, owning their home and vehicle outright with no debt.
While you may not actually live like the rich, these small, frugal tips can make you feel as though you are.
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This article originally appeared on GOBankingRates.com: Frugal Living Hacks: How To Live Rich on a Middle-Class Budget
