Living a simple frugal lifestyle for wealth is pretty simple.

Morgan Housel, in his book: “The Psychology of Money,” defines wealth as money not spent. In order to build wealth, you must not spend the money you’ve earned. That’s how simple it is.

But, how do people really build wealth by living a simple frugal lifestyle?

How to Live a Simple Frugal Lifestyle

Have a personal budget plan

The most important thing to remember when living a simple frugal lifestyle is having a personal budget plan.

A personal budget plan helps you keep track of how much you can spend, and how much you should save up. With this, you will know how to keep yourself from overspending. With a personal budget plan, you can live a simple frugal lifestyle just by following it.

You won’t have to worry about going over budget because it’s all right there.

Watch your food expenses

For a lot of people, this is where it matters most; food.

You might love to eat out, but if you want to build a simple frugal lifestyle, we’re gonna have to make some budget cuts on that area. Start by limiting how many times you eat out. Home-cooked meals are usually much cheaper. If you can, pack a lunchbox and eat that when you’re hungry, which is usually much, much cheaper.

If buying food outside the only option, make sure to consider getting well-valued meals as well. You don’t have to buy bad quality food for the cheap price; just find something you’d love that’s offered for a good price.

The important part is limiting your purchases down to what you actually need.

Be mindful with your resources

Another part of our expenses is our bills, and this is one of the easiest ones to manage.

It all boils down to using as little as possible, and turning everything off that’s not in use. If nobody’s in a room, as much as possible, shut the lights. Turn off the faucets, and don’t leave fridge doors and regular doors open for too long. Be more mindful when using water.

Basically, you’re gonna have to follow your parents and be more mindful with what you consume.

Prevention is better than cure

In almost every aspect in life, always prevent the worst-case scenario.

For your health, make sure to always drink your supplements and to always stay healthy. Regularly check on your car’s condition every now and again. Check for anything that needs maintenance around your flat.

Make sure to nip every problem in the bud to prevent them from being a worse one down the line.

If you don’t take care of yourself, you’ll spend a lot more money on medicine and hospital fees. This goes the same for all the other things mentioned earlier. As long as you can do something to prevent it from getting in worse condition, do it.

It’s much easier on the wallet and on life if you just take care of what needs caring.

Pay off your debt as quickly as possible

Having debt doesn’t only weigh down your mind, but on your wallet as well.

The longer you hold on a debt, especially if it has an interest, the heavier it will be. Instead of holding it off, pay it as soon as possible, even if you have to make quite a few budget cuts. As mentioned earlier, prevention is better than cure.

Paying off your debt now is much better than refusing to do so and losing more money in the process.

How to live frugally

Having a simple frugal lifestyle boils down to being mindful of your expenses.

Make budget cuts wherever you can. If you can live without something, you should consider taking it off. You should also take care of yourself and your things; prevention is better than cure.

All-in-all, be mindful of where you put your money, be mindful about yourself, and don’t hold onto debt for too long.