Whether you’re trying to seek financial independence or look for helpful personal finance tips, Reddit can be a good source of information. Since there’s a high number of contributors, you’ll find some incredibly helpful tips.
To save you from the hassle of going through several subreddits, we’ve gathered 3 of the best frugal living hacks from Reddit we could find.
Invest in Assets that Generate an ROI
One user on Reddit commented that it’s not necessary to accumulate excess wealth before one can think of going down the investment route. Regardless of what you earn, you’ll always find an investment opportunity with the appropriate risk to reward ratio. That said, the money you invest will only work wonders for you if you invest in a financial instrument that gives you a return.
More importantly, learn to invest in yourself and your financial expertise. Some things you can do are:
- Listen to audiobooks on finance
- Purchase online courses on investing
- Read books on investing and financial management
It would help if you also considered putting some money aside for future emergencies. For instance, you can consider building an emergency fund, investing in a retirement plan, or looking towards other investment options. When these funds are set, the chances of you running into financial problems will be a lot less likely.
One of our Favorite options is M1 Finance. With M1 Finance you can invest, borrow, and spend all in one easy-to-use platform. This is one of my favorite apps when it comes to investing because I am able to build more and worry less about my investments.
Ditch the Consumer Mind-set
All of us have different triggers for spending more money than we should. Some people spend more when they are sad; some people do it after a breakup, while some do it when they think they have enough in their bank account. Understanding what triggers you and then controlling it can help limit unnecessary spending.
In the early stages of wealth accumulation, you’ll have to limit discretionary spending. This way, you’ll only take on essential expenses, and the money you save will go to a savings account that you can use for investing.
Withdrawing cash before a shopping spree can also limit what you spend. It can be hard to walk away from a store full of items you think you need, and all you have in your pockets are credit cards. Consequently, take the amount of cash you think you’ll need and only buy what you’ve listed as essential items whenever you go shopping.
Have a Freezer? Use It!
Here’s another frugal living hack from Reddit we loved.
Most of the money we all intend to save at the end of every month ends up going towards food, regardless of whether you’re paying for groceries or dining at a restaurant. Some people on Reddit mentioned that they stock up on items that are on sale in their grocery store in an attempt to save money.
These items (frozen meal, bread, or meat) then stay in the freezer for a long time. This will stop you from spending money on these items every week, which will, in turn, help you save money.
Wealth Morning – Lifetime Wealth InvestorConclusion
Financial independence requires due diligence and a lot of thought, but even with minimal preparation, and some help from Reddit, you can see drastic changes in your lifestyle.
