If you want to live frugally — that is living modestly, saving money and making conscious financial decisions — there are certain habits you need to break and certain things you need to stop doing, according to frugal living YouTuber Kate Kaden.
In a January YouTube video, Kaden laid out four specific ways that can enable consumers to stop wasting money and start saving.
Stop Blackout Shopping
“Most of us have experienced this,” she said in the video. “We go into Target for a bottle of shampoo, we need shampoo, we’re out of shampoo and then the next thing we know we’re at the checkout and you’re looking at the conveyor belt and you’re like “where did all this even come from?” And then next thing you know it’s a bill of $200.”
The “Target effect” is indeed very real. The retailer’s implementation of the “Gruen Transfer” has created a shopping environment that confuses consumers, often leading to impulse purchases.
Being aware of this phenomenon and coming prepared — with a list — is one way consumers can avoid overspending.
Stop Wasting Food
The first thing Kaden said is important to know, is to be honest about your eating habits.
“You’ve got to be realistic about it and buy the food that you are going to consume,” she said.
And to put this in context, according to Feeding America, a whopping 38% of all food in America is wasted.
The second tip Kaden shared is to have a plan for every piece of food that you purchase.
In other words, be aware of what you buy so you don’t let the food expire or rot in your refrigerator.
“Food is expensive you know, this every little bit will help as you prune your grocery budget just to the food that you need and are actually going to eat,” she said.
Stop Living in Your Past
According to Kaden, we sometimes get stuck in old habits — a habit that can be financially detrimental.
“We tell ourselves that that’s who we are and that’s what we do when really, we need to adjust to what is currently going on,” she said.
Instead, she said try changing your mindset.
“You can change your actions to get somewhere totally different and this can happen anytime,” she said.
For instance, when you live in your past — you can get stuck in poor financial habits such as having accumulated debt and not paying it back or having a closet filled with clothes you don’t need.
“You can say you know I’m tired of doing things the way I used to. I’m going to change it and I’m going to do something different. If you’re not happy with your current results, you must do something different to get a different result,” Kaden said.
Stop Living Paycheck to Paycheck
Finally, Kaden’s fourth tip is to stop living paycheck to paycheck.
“It’s time to break free from that cycle,” she said. “Is it super easy to do? No or else everyone would be doing.”
Yet, she said that with a plan in hand, you can achieve this. First, create a budget and evaluate your income and your expenses.
“You are going to know how much you’re bringing in and you’re going to list all your expenses,” she said. “You’re going to assign every dollar that comes in a name so that you know exactly where all your money is going. You’re going to track every dollar you earn and every dollar you spend as the month goes on.”
This can help you see if and where you were overspending and provides a more realistic picture of your actual financial situation, she said.
Then, she recommended prioritizing building an emergency fund as well as looking for any opportunities to earn more.
As Kaden also explained in an article on her website, sometimes when people think about frugality, they tend to associate this with not spending anything at all — which is not the case. It is about making conscious financial decisions.
“I’m going to spend money, but I’m going to spend money on what’s important to me,” she said. “If I haven’t said it a million times to you before, the budget for me is so empowering. It’s not restrictive in my mind at all. It makes me feel really in control.”