The ‘Frugal Movement‘ is a movement that is gaining traction all around the world. It involves users being more conscious about where they’re spending their money and breaking the cycle of consumer culture. Many people who are a part of this movement save thousands each year, so it’s confusing to see why we’re all not doing it.
Michelle McGagh, London finance journalist, took her money into her own hands and decided to not spend anything for a year. She did have a budget that allowed for mortgage repayments, rent and a modest $AUD56 grocery budget, however those were her only permitted expenses.
This meant no trips to the shops, no clothing purchases and no holidays away. Although it was very tough, McGagh ended up saving $AUD37,000 in the next year. When people see the end number, they think it’s easy, but that’s not the reality. McGagh realised how tough it was not to spend, especially on experiences.
“I can forgo new clothes, make-up and even pints in the pub, but it was difficult when I couldn’t go on holiday with my girlfriends, particularly as my friend Trina was moving back to Brisbane,” she said.
However, ultimately McGagh believes that the sacrifice was worth it to discover a bit about her spending habits.
“Whether it’s a daily coffee or popping out for lunch every day, an extra pint down the pub or the purchase of a pair of jeans we don’t need — all that spending adds up over time and getting a handle on that can make a huge difference to your bank balance,” McGagh said.
Being this frugal isn’t for everyone. By taking control of the way that you spend, however, you can see a variety of changes within your budget. By tightening your hold on your finances in these tempting situations, you’re already taking steps forward into a healthier budget. Take a step forward into the frugal movement and see how much you can save.