20 Habits Of Frugal People In 2023

I managed to save £10,000 (around 30% of my salary after tax) while living in London, going out with friends, and generally living a pretty great life 💸 Building financial freedom is probably my biggest life goal right now - and growing my assets is a huge part of that, which means saving money each month 👏

So, in this video I share the 20 practical steps I’ve taken to save a decent amount of money each month without changing my life much at all. I’m definitely not going to tell you to sit inside, alone, and hoard your wages. What’s the point in saving money if you’re making yourself miserable in the process?! 😤

Instead - it’s all about small, cumulative changes that add up to build you at least £10,000 in savings in just one year. Having the money I’ve saved over the last 2 years in my job (around £25,000 total), along with some savings from my YouTube channel means I’m on my way towards financial freedom. There’s a long way to go, but I own ETFs 📈, and parts of pieces of art 🎨, and am looking to invest in real estate soon 🏡. All because of these habits 🫶

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Menos - Minimalist, sustainable backpacks (by Liam & Beth)

Beth and I created Menos to bring minimalist, sustainable design to help us all boss the everyday. Our backpacks are each made from 15 post-consumer recycled plastic bottles. Plus, we collect 100 ocean-bound plastic bottles with every bag purchased.

Water resistance, 180-degree opening, internal bottle holder, USB charging port, easy-access side pocket, hidden anti-theft zips, ergonomic back padding, embroidered detailing.

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My Free Trello Masterclass

... The course walks you through how to build your customised version of my insanely powerful (but simple) Trello productivity system (aka the app that keeps me focused for 10 hours per day!) 📱

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About Me

I'm a trainee lawyer, part-time YouTuber, son, brother, startup founder, boyfriend, black coffee drinker and plant dad. I graduated from Cambridge University (where I studied French and Spanish), topped my law school class and now work for a corporate law firm in London as a trainee solicitor (which takes up a lot of my time)!

Around that, I'm a big fan of discovering new ways of thinking, of balancing work with life, and of performing to the very best of my ability. Ohh, and being happy. And I try to share all that on this YouTube channel 😀

Fun fact: I believe we massively overplay the role of “natural talent” 😮 AND… I also believe that TOGETHER, WE ARE ALL CAPABLE OF POSITIVITY, PRODUCTIVITY AND SUCCESS.

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Disclaimer:
Information, views and opinions depicted in this video are my own. Information visible on screens or in documents does not relate to my work as a lawyer for clients.

This channel is for education purposes only and does not constitute financial advice - Liam is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance.

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Thanks so much to Masterworks for sponsoring this video!

[grandpastone]

📌 *Nice video, love how you take your time to educate your viewers. You gave me the mindset to invest my savings now I have made profits over $120k Right now and still making more, I am enjoying a good life with what I made investing. Indeed ‚building a Portfolio income (investing) through a licensed investment adviser is one out of many ways to earn passive income.*

[wmblemania]

My tips:
- buy for longevity, but ONLY at steep discount. If you want a new pair of quality shoes that will last you a decade, then buy them over the cheap Kmart rubbish, but wait Black Friday or New Years sales to get them at 50% off. Have a mantra: if you can't buy an expensive item on sale, you don't buy it.

- on the other hand, be careful of second hand. If you buy a used car, you are buying someone else's problems. They are selling the thing for a reason, after all...and that means the car could be a dud. Ensure all the paperwork and *all* servicing stamps are there, and pay a mechanic to do a thorough check on the vehicle. It will pay for itself.

- if you're buying a home or investment property you *must* get an inspection report. If you find that your new propery has termites, water damage, corroded pipes under concrete or structural cracking then it could be the biggest financial disaster of your life. The cost of the inspection is insignificant compared to the dangers. Remember: someone is selling the property for a reason...

- do food prep on Sundays. Peel a bunch of carrots, put them in a glass container in water, in the fridge. They will remain completely fresh the whole week. Have them with celery and cherry tomatoes for snacks at work, and them in the oven with roast potatoes and pumpkin for easy weeknight meals.

- tell expensive-minded friends and family that you are "on a budget" or you are "saving". Be direct, so they don't expect you to shout a $100 round of drinks or plan an expensive vacation with you.
If your office mates all get $8 coffees every morning, tell them you're on a budget.

- don't have bank loyalty. Here in Australia, one of the biggest banks, CBA, offers 1.1% on their "Savings" account. Meanwhile, you can get 3.2% with *no* fees, minimum limits or other hurdles at places like Macquarie Bank. That's a huge difference, especially when inflation is so high.

[s_don]

I would also recommend automating all of your finances so that you don’t need to look at them on a regular basis.

So when I get paid, I have set up direct debits to all of my bills, a set direct debit to my savings account and also to my index fund investments. I then transfer the remainder to a separate Monzo account which then gives me spending reports and tells me how much money I can spend for the rest of the month.

Although this sounds like a lot, it only took me about an hour to set it all up and has been a game changer by saving me both time and money.

[martyedgar]

Thanks for increasing my knowledge in personal finance and investment, I recently subscribed to your channel. I want to give a big shout-out to all those working tirelessly to earn a living and build wealth during this recession. My husband and I are both retired and debt-free, and we're living smart and frugal with our money. Despite the recession, we're still earning passive income thanks to our savings and investments in the financial market. Investing lifestyle has enabled us to earn a steady monthly income through passive means, and we're grateful for it;.

[ajbrockie]

One good way for me is to save the £ equivalent to what date of the month it is, so the 1st I save £1, the 2nd I save £2 etc. so for every 31 day month I save £496 etc.

[ShootingAir]

My wife and I are pretty much at the FIRE stage (50, so not Super early, and she still works a couple days a week). But thinking back to the time immediately after college graduation the biggest difference between us and our peers were that we didn't change our lifestyle. Everyone else rushed out and bought new cars, big homes (and lots of shopping to fill those homes) and Immediately added to their debt. We focused on eliminating our ~$120k worth of student debt before adding anything back. So we lived in a cheap rental, kept driving the same, paid-for, vehicle (did have to buy a second, bought used and paid for outright after saving specifically for the purchase over about 8 months). I'm not saying we didn't enjoy life, we took trips to Hawaii (anniversarys), went skiing, hit up theater shows ~ just that we added no additional debt till it was paid off 5 years later.

Past that, you nailed the big one, eating at home and brown-bagging your lunch. Our grocery budget, eating very well, runs about $11/day per person ~ you can Easily blow more than that one Just lunch out. Coffee at home is well under $1 (for a worlds better product than can be bought for even triple that price), and a water bottle is a no-brainer.

As a side note, Rich Dad has "passive income" at the expense of Constant, and ever increasing, debt. It works, but it's work to juggle and you've got to have the right mental fortitude, which I quickly found I didn't have. We found that a simple life with minimal expenditures while also doing the normal saving (401K, IRA, HSA, some stocks/bonds) works best for us. That and following the adage passed on from my dad of "If you can't pay cash, you can't afford it", with the 2 exceptions being education and a house, has paid off well. Neither my wife nor I have had a full time job in over a decade because it's been totally unnecessary.

[wmblemania]

Re: Rich Dad Poor Day, just remember that Robert Kiyosaki made his money not by practicing what he preached, but by selling *books* on how to get rich to MLM people (Amway), using a "Rich Dad" gimmick.
It's likely that "Rich Dad" never actually existed.
He has also been bankrupt at various times.
IMO, he is not a role model, and it's not a good book.

[destroyerinazuma]

I'm not the author but here it goes: if you want to buy something, make a note, wait a week, if after a week you still want it, then consider buying. The guy who recommended it said it saved up to 1/3 of his paycheck monthly. Obviously this shouldn't apply to essentials and this more tailored to compulsive buyers.

[Barry_Kavanagh]

So happy you included point 20!
I used to buy 1-2 belts a year for about €20 each. I keep things minimal so I really just need a black and a brown belt for various outfits. Suit belts are worn less so I get away with a cheap and cheerful set of black and browns there.
I recently bought a Levi's authentic leather belt for wearing with jeans, it is reversible so can be black or brown and I've been wearing it almost every day for 2 years now and it was €80 and it's still going strong. I don't see it needing to be replaced at all anytime soon but even if I got another 2 years from it I'd buy the same one again, makes way more sense financially and it's better for the environment 😊

[gk_knight]

Another tip - avoid expensive monthly gym memberships by exercising outdoors and investing in some dumbbells

[EdwardSHS]

The problem with earning more and more money is you start to lose track quite easily and it scales as well. Also I reckon leaving stuff in cart and just sitting on items, question yourself if you actually need it helps with the mental process as well.
Also you start to value “time” alot more than the cost of things, sometimes it’s worth it to spend a little extra just so that you don’t spend the time worrying about something coming on time or whether if the place your buying from is reputable. Especially when you get older and even more so when you have children. 😂

[teresse]

Funny thing about Beth’s advice - I had this video as a background to a lunch part of my weekly mealprep and yeah, I am having chili con carne next week. I did the math back in 2018 and I counted that with the prices back then, mealprep just on lunch alone will within 5 years save me enough to buy a car (second hand but still). Snacks are also a good deal, especially if you are unable to stop eating until the packet is done like me. I use ikea 365 compartments and their tupperware and make yoghurt+apple+small amount of chocolate and nuts in top and it is enough to keep me happy but so much cheaper than buying snack every day. :-)

[nvdolcevita]

Tip 14, as a concept it’s amazing, but in reality so difficult to sell stuff, unless you put a crazy low price. And it takes so much time to take pictures and upload to platforms, that you need to think if your time spend on this is worth rather than just give it away for charity or throw.

[Thaddeus_Howe]

Buy clothes on sale or at thrift stores as much as you can! I go to a wealthy college and feel a lot of pressure to dress well but don’t want to spend the money. I’ve been able to assemble what I think is a very smart and preppy closet for probably 1/5 the price my friends pay for their clothes. It feels great wearing an outfit that cost me $40 that would have been $200+ at full retail!

[charlesblack]

Tithing is a tip I believe in. It seems to stretch the money that comes in. Mysticism but it works.

[robintobor]

Being frugal does not mean to be poor.

Thanks for this video.

[withwilk]

Not for everyone, but my tip is to lower your cost of living. I live on site at my job, I only pay the electricity bill. No rent, no council tax, no commute, etc... I make on average £1500 a month after tax. It isn't how much you make, it's how much you spend. I also don't have to do a ton of work in this basic job, unlike previous "career" jobs that require more of me, for more money. So I have enough to save, invest and enjoy the free time I now have.

[BismarckOsaigovoo]

I disagree with the ready meals idea. Cooking your food is proberbly the best approach. Meal prep is the way to go.

[GBLyrics]

That’s how I got my first house, when living at home I saved a grand a month being boring and not spending much for 2 years then started my life from there, mortgage and all

[musikhamster]

Another "tip" I've got is: Asking myself "Do I really need this?" If the answer is yes, then looking for a way to get the most for my money.