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Frugalism: Learning to Live with Less and Love It

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dried medicinal herbs in ball mason jars in a kitchen hutch

When I think back to what sparked my current philosophy around frugalism, it was seven years ago when my husband and I were engaged and planning our wedding. We wanted a beautiful, meaningful celebration without the extravagant costs often associated with modern weddings. Instead of succumbing to industry pressures, we crafted a heartfelt, rustic wedding. With a beloved family member as our celebrant, homemade flower arrangements, a DIY sound system, a dress from Etsy, and a feast from our local Lebanese restaurant, we created something truly beautiful on a modest budget.

Because we paid for everything with cash, we began our marriage free from unnecessary debt. This experience taught us that frugality didn’t mean deprivation but rather creativity and intentionality. These lessons became crucial as we navigated the next stages of our lives, allowing us to save diligently and buy a house in the country. This financial discipline provided me with the choice to stay home with our children, creating a buffer and alleviating the pressure to return to work.

Three years into parenthood, I’m incredibly grateful for our choices guided by thrift and care. Managing our spending and embracing a frugal mindset have been cornerstones of this simple, intentional life. Alongside having a clear vision for our lives, constantly developing our self-reliant skills, and embracing the beauty found in the every day, frugalism has deeply enriched our lives. I’d love to share what I’ve learned so far.

Our rustic, heartful wedding on a budget - our gateway to frugalism.

Developing a Frugal Mindset

Frugalism, in its simplest sense, is the practice of spending less than you earn and saving or investing the difference. I love its sense and sensibility!

It’s not about deprivation or penny-pinching but rather about embracing a life free from the clutter of excess desires or possessions. It’s about being creative with your financial resources and ensuring that your spending is directed toward things that genuinely enrich your life. This sustainable lifestyle isn’t just about saving money—it’s about achieving financial freedom and a self-determined life.

Now that we’re on one income, I take my role as a full-time homemaker seriously. My husband generates the bulk of our income, and it’s my job to apply that money as wisely as possible, saving as much as I can. Every dollar saved is like earning a dollar without having to pay tax on it. I genuinely love the creative challenge this presents!

Here are some of the habits I have found to be the most effective at helping us consistently spend less than we earn.

Frugalism in Grocery Shopping: Saving on Groceries While Feeding Your Family with Beautiful, Nutritious Food

Meal Planning & Shopping Wisely

We do two big shops at Aldi each month, stocking up on non-perishables like olive oil, coconut oil, vinegar, chocolate, flour, rice, pasta, and canned tomatoes. They also do great organic coffee and eggs. I have found Aldi offers the best prices in Australia, even better than wholesale or bulk buying options.

Additionally, we buy meat in bulk for two months at a time and store it in a chest freezer. We source from a butcher that stocks pasture-reared and grain-finished beef, lamb, pork, and chicken. Whilst I would love to be able to purchase organic one day, I’m happy with this middle-road approach for now. I like to choose whole chicken, soup bones, and cheaper cuts of meat on the bone that are full of nutritious connective tissue and gelatin. They come up beautifully when slow-cooked and are nutritionally superior to leaner cuts. Mince is always budget-friendly and easy to whip into lots of different meals—so I’m always sure to have a good amount on hand. (I’ve shared my family meal planning process over here).

I aim only to do one fresh produce shop a week, which requires sketching up a meal plan, looking at what we’re missing from the fridge, freezer, pantry, and garden, and that becomes the shopping list. It greatly eliminates all those little top-up shops during the week which add up!

Abundant salad harvest

Frugalism in the Kitchen: Having a Kitchen Garden

During the growing season, I try to grow as many of our salad items as possible, such as fresh herbs, greens, tomatoes, cucumbers, peas, and beans. We have found great success with the no-dig method of establishing a productive garden.

Cooking from Scratch

Cooking from scratch, making basics myself, like bread, yogurt, and bone broths, and growing veggies in the garden all save money. I’ve turned these into fun, creative activities that feel wonderful because the outcomes are delicious!

Making our sourdough bread and thick, creamy yogurt, adjusted to my children’s tastes, gives me great satisfaction. We eat good quality food at a fraction of the price.

Developing the skill of turning simple ingredients into delicious, nutritious meals has been one of the most significant aspects of embracing frugalism. It’s a rewarding way to save money while ensuring my family eats well.

Consolidate Bank Accounts

When developing the habit of spending less, a little financial organisation goes a long way. If you’re not already doing so, consider using a bank that doesn’t charge ATM fees and offers good savings interest rates. In Australia, ING and Me Bank are worth looking into.

It’s also helpful to have one shared transaction account for all household spending and direct debits. This makes budgeting easier and allows you to visualise your spending and savings more clearly. If you have any leftover money, transferring it into a savings account builds confidence and motivation.

Regularly Review Your Insurance and Energy Providers for Better Deals

In my digital calendar, I have annual reminders to review our home insurance and utility providers for gas, electricity, and internet. Companies often offer sweetheart deals to attract new clients, but then you get rolled into higher fees after the initial year. It takes a relatively short amount of time to research and switch providers, which can save you thousands a year.

You can also call your current provider and ask if they can match a better deal you’ve found elsewhere. This is one of the most satisfying homemaking tasks that makes those phone calls worthwhile.

Making Our Home More Energy Efficient

Prioritising making our home more energy efficient is a long-term strategy. Our home is a simple cottage built in the 1980s, and while there have been some renovations done by previous owners, no one has taken the time to redo the insulation or fix drafts.

While I would love to paint the rooms, purchase beautiful curtains, and change fixtures, I know that prioritising things like paying down the mortgage and redoing insulation will reap long-term rewards.

We’re slowly replacing old appliances with more energy-efficient ones. So far, we’ve replaced the washing machine, added insulation under the house and on the roof, and installed a clothesline with a weather-protective top on the north face of our home.

We’re hoping to get solar panels, a heat pump, a more energy-efficient fridge-freezer, and fans in all the bedrooms over the next couple of years.

Frugalism in Gift-Giving: Making Thoughtful Presents

Adopting a more frugal mindset has inspired me to make as many gifts as I can. Christmas in Australia coincides with the growing season, so I’ve been able to make little jars of preserves, herbal salts, and biscuits, which I put together in cute baskets for affordable Christmas presents.

With two children under three, finding time for these activities can be challenging, so I’ve also been thoughtful about choosing books for friends and family which is a lot easier. Setting a budget helps me take advantage of deals when I find the perfect book for a loved one.

We’ve also decided to set realistic expectations for gifts within our family. We focus on longevity, opting for toys like Legos and Magna Tiles that provide hours of entertainment. A Montessori approach also offers wonderful activities and toys that can often be created at home with items around the house, keeping our children engaged without breaking the bank.

Affordable Hobbies & Children’s Activities

My favourite hobby is reading, and I love learning through physical books. To keep costs down, I happily buy secondhand books. Audiobooks are another great option; they allow me to enjoy books while doing household chores.

Most of our kids’ activities are free, such as visiting the library for toddler time and nursery rhyme sessions or exploring local forests and bushland. This winter, I invested in a nature-based learning curriculum focused on seasonality. It’s filled with songs, stories, and activities like nature walks and practical skills around the home. It’s a great value and fits perfectly with our frugal lifestyle.

Kids Clothing

Clothing-wise, I maintain a limited wardrobe each season for everyone in the house. The kids are fortunate to receive lots of hand-me-downs from their cousins and some of our neighbours. Typically in May and October (the changing of the seasons), I pull everything out of everyone’s drawers, creating a huge pile per person. Anything with deeply entrenched stains gets discarded. Anything with mendable holes goes into the sewing pile. Since we maintain a minimal wardrobe, there isn’t much left, as everything gets worn thoroughly.

After sorting out the damaged items, I store anything still nice and likely to fit next year in a large bin labelled with each child’s name. Then, I retrieve the hand-me-down boxes and see what we have for the season ahead in the right sizes.

The final step involves taking inventory of what we need. I aim for around five bottoms and five tops per child. Winter is trickier, requiring extra layers, thermals, jumpers, hats, and coats. For summer, as long as everyone has swimmers, some shorts, t-shirts, a couple of dresses (for Anna), and two pairs of sandals, we’re good to go! I learned this approach from Dawn at the Minimal Mom and I haven’t looked back since. Then I can make an intentional visit to the op shop or Kmart to fill in any gaps affordably.

We also use modern cloth nappies, which saves us a significant amount too!

Create and Regularly Review a Budget

If you’re trying to change your habits and mindset and live on less than you earn, a budget is an essential tool. It does require some discipline (so it helps to always have some room for movement) at first, but when you start to reap the rewards, it’s the best motivation to keep going. I feel comforted by working within realistic boundaries and knowing that by doing so, we are moving forward on our goal of owning our home outright in the next six years.

Simple & Flexible is Best!

Over the years, I’ve tried various methods, from using apps to spreadsheets with elaborate category systems. I’m really happy with our current system, which is simple yet effective. If you can reconcile your budget within 20 minutes, it’s much more likely to happen regularly.

While our system might not provide as much real-time insight as others, it works because it gets done. We’re not pedantic about counting every dollar; instead, we focus on overall spending patterns and make manageable adjustments.

We use a Google Sheets template, set up with limited expense categories for our budget.

Expenses

  • Mortgage
  • Mobiles & Internet
  • Home Insurance & Council Rates
  • Subscriptions
  • Utilities
  • Home & DIY
  • Garden
  • Groceries
  • Entertainment & Restaurants
  • Cars & Transport
  • Health
  • Kids
  • Buffer/gifts
  • Orlando Money
  • Clara Money
  • Savings and Investments

Reconciling at the End of the Month

At the end of each month, I download the CSV file from our transaction account, categorise everything, and then review how we did. My husband and I have a meeting, often with a pot of tea and a slice of something delicious, to discuss any necessary adjustments for the upcoming month.

This habit is crucial for working towards financial independence. It keeps us accountable for our long-term goals. We know exactly where our money is going, and any extra money goes toward our mortgage.

The Journey to Financial Freedom with Frugalism

Embracing the idea of frugalism has transformed our way of life and brought us closer to achieving our financial goals. It’s not just about spending less money; it’s about making intentional choices that lead to a better life. By increasing our savings rate and avoiding unnecessary expenses like fast food and impulsive grocery store purchases, we’ve managed to save a lot of money over the years. Frugalism has taught me that the most important thing is not how much money you make but how you manage it.

Resources for Further Reading and Inspiration

Books on Frugalism and Minimalism

  1. “Your Money or Your Life” by Vicki Robin and Joe Dominguez
  2. “The Simple Path to Wealth” by JL Collins
  3. “The Barefoot Investor” by Scott Pape
  4. “Down to Earth” by Rhonda Hetzel
  5. “Thrifty Kitchen Cookbook” – Practical recipes and tips for frugal cooking.
  6. “Save with Jamie Cookbook” – Jamie Oliver’s guide to budget-friendly meals

Blogs and Websites

Podcasts

  • ChooseFI Podcast – Insights into achieving financial independence through simple living.

Additional Tips and Ideas


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