Patryk runs a removals and storage company called Removals & Storage Experts based in London.
Eight in 10 salary-earners live from paycheck to paycheck. Most people say they lack the savings to cover a meagre $400 emergency expense. As the recession progresses, those numbers will only worsen, but frugality can help you to bounce to the surface.
What is Frugal Living?
A frugal lifestyle entails spending your money more consciously and setting fewer financial priorities. Living beyond your means affects more than just your wallet. That fuel-guzzling four-wheel drive is pumping more emissions into the air than heavy industry, and those expensive gym fees contribute to their own form of environmental impact. When you hear the word “frugal,” you probably don’t think of rainbows and glitter, but a more financially conscious way of life can have magical effects on your happiness. Frugality is a lifestyle choice that often adds as much to your social calendar as it does to your wallet, making you part of a global movement and forcing you to think more carefully about the way you live.
Why We’re Heading for Economic Depression
As businesses close due to lockdowns, consumers tighten their belts. The less people earn, the less they can spend, and the domino effect can be devastating. Many economists believe that some coronavirus-related changes will last decades.
The apex of the crash, according to Moodys, has passed, but the impacts will be devastating for all working generations. The GDP dive rivals that of the Great Depression.
It took three years to recover from the recession of the Noughties, and the speed of the current crash is unprecedented, so most of the world will need to make permanent lifestyle changes.
Here are a few suggestions on how to transition to frugal living. Here are a few suggestions on how to save on cost of living.
Buying a Smaller Home
If your rent feels more like torture than an expense, moving to a smaller home can have a drastic effect on your monthly budget. Moving to a cheaper place might even carry you to a better suburb. Some of the most beautiful parts of the country are right in the midst of Mother Nature’s best creations.
Choose a More Economical Car
If you’re still driving a status symbol on wheels, you’re probably also driving the oil industry. SUVs account for 18% of car sales, bringing growth to the oil industry while racking up carbon emissions. If that luxury vehicle is to be more gas-efficient, it’ll need premium fuel. It’s time to stop pouring your money into your car. Modern hybrids achieve an impressive 42 miles per gallon.
Finding Jobs that Fit the Post-Pandemic Economy
The overall recession might be grim, but there are pockets of opportunity amidst the rubble. Some parts of the gig economy are thriving, and the digital transformation sector is booming even more. The pharmaceutical and food technology industries have proven agile during the crisis, too, so if you know how to stand out as a candidate, you might just be able to raise your income.
How to Look for Jobs Amid the Pandemic
- With social distancing on everyone’s minds, you’ll need to develop some digital job-hunting skills. Virtual events and Facebook stories are perfect for online networking. You can also start interacting on remote contracting sites like Upwork and Fiverr. You never know when a contract will transform into permanent employment.
- To stand out, you must become part of the conversations happening in your niche at a local level. Get onto Facebook, run some Twitter searches, and become visible to industry leaders.
- Consider going location independent. Remote freelancing is thriving, and it covers more skills than you might think, from writing and graphic design to administration and bookkeeping. Even film editing and voice overs are going location independent these days.
- To ace your interview, you need to understand the company culture you’re looking to become a part of. Use Google and Google Alert to stay in touch with the business you’re applying to.
- Improve your skills: Use all that time at home to do a few online courses so that you’ll be the best candidate when the job market rebounds.
Find Cheap Alternatives to Everyday Items
Many luxury products are no better than their budget alternatives. Expensive skin and hair care products often contain the same ingredients as their economical alternatives. A bottle of white vinegar is a drain unclogger, blinds cleaner, weed killer, and glass polisher. One small smoothie often costs the same as a week of homemade ones. Think before you spend, and you can save thousands.
Love Your Bike
There are better ways to stay fit than on a stationary bike or treadmill, especially if you’re spending $700 a year on your gym membership. Getting out into the real world comes with far better views, so haul out your commuter bike and get to know your neighbourhood better. Hiking is just as fun (and cheap), so invest in a few arm weights and discover Mother Nature’s magical gifts. Need a little more weight bearing? Then take up climbing. The views will be worth it, and so will the biceps.
Living frugally is about more than just spending less. It’s about packing more value into your lifestyle than your bank account. It forces you to reconsider every moment of your life. What matters to you? What gives you joy? Those are the things you should be spending your money on.
About the Author
Patryk runs a removals and storage company called Removals & Storage Experts based in London. He is passionate about helping people make a new house a home.