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The ultimate guide to saving money on a new apartment

By Frugaling 1 Comment

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Moving into a new apartment can be very exciting. After all, you’re going to get a complete change of scenery; in fact, you might even be moving into a whole new town, with exciting opportunities that have simply never been open to you before.

However, moving – and settling – into an apartment can be surprisingly punishing to your bank balance. There are so many little things that you have to carefully consider during the moving process – and you can easily imagine the frustration that will set in should you overlook one of these little things and, as a result, be left with a nasty financial sting.

Hence, we have decided to compile this thorough guide to saving money along the way – whether you will be buying or renting an apartment to live in or splashing out on one to allow others to rent it.

Weigh up different removal costs

If you are buying or renting what will be your new home, then how many items do you need moving from your current residence to this new one? Whatever the number, it might not include any furniture – if, for instance, you are leaving your parents’ home or a furnished property. Therefore, you might not need anything more than a car and a few friends to help you with moving everything.

However, you might actually have an abundance of items – including heavy furniture, such as a television and sofas – to shift. In that case, you should probably avoid over-stretching yourself; hire a van or from a removal company, don’t just stick with the car and your mates. Even if you reckon that a lot of items need to be transported, you might be able to save money by forgoing a removal company in favour of a van, as this could be sufficient for your requirements.

Nonetheless, MoneySavingExpert.com advises: “For those who are moving from one furnished property to another, you’ll probably need to enlist the help of a removal company.” So, do try to keep a sensible limit to the extent of your penny-pinching.

Turn to web companies to get free furnishings

If your new pad will be largely empty and, therefore, require you to get hold of lots of new furniture, appliances and other items, keep in mind that you could obtain them surprisingly inexpensively. In fact, hundreds of great items are daily available at no charge, thanks to web communities such as Freegle and Freecycle. This will probably have you asking: “So, where’s the catch?”

You could end up spending a lot of time fruitlessly searching for one, as it doesn’t exist. Web communities work through allowing people to offer their unwanted items to local communities. That’s certainly good for the environment, as these items are not simply deposited on landfills. It can also be good for your financial health. Furnishing staples like beds, sofas, TV sets and fridges can be picked up from web communities – and you might even come across more specialist but also useful goods such as ornaments or iPads.

Still, consider that, as you look through what web communities are offering near your fresh apartment, you could stumble across some “moth-bitten tat”, as MoneySavingExpert.com calls it. Getting the best goods from these communities could require you to spend time thoroughly researching, not to mention maintaining a careful lookout.

Trim potentially hundreds of pounds on gas or electricity bills

You might want to resist simply settling for the energy supplier whose services were in place when you moved in. Of course, those services could “just so happen” to be the most suitable for your own needs, too. However, it’s easily possible that, by sticking with them, you would be essentially throwing away what would add up to hundreds of pounds a year.

Therefore, don’t be afraid to look at alternative options. Changing to the best option could be as simple as contacting your existing supplier and asking to be switched to a different tariff that they offer. However, even switching to a completely different provider would likely be worthwhile. This is because your own choice of provider and tariff, decided on following your own thorough research, is likely to be much less expensive than the tariff you were placed on as you moved into the apartment.

Here’s another quick tip: upon moving in, take meter readings. This would be good for checking that you are not still paying for the gas and electricity usage of the apartment’s previous owner.

Tread carefully before investing in a buy to let apartment

Stories about millionaires operating massive portfolios of buy to let properties could lead you to think that joining these people in buy to let investment would be a good idea. However, the success of such a project can depend on a wide array of factors. This is MONEY reports experts advising making such investment for income rather than short-term capital growth.

So, the prices that you pay for properties and at which you can later sell those properties shouldn’t necessarily be at the forefront of your mind. You should instead think primarily about the yields and how they differ between properties. A property’s yield is the annual rent that you would receive as a percentage of the buying price. Thus, a property costing £200,000 and bringing £10,000 in rent has a yield of 5%.

You could find that certain areas have properties offering particularly high yields. Buy to let Leeds properties commonly have yields of more than 8%. That city also has a market of many students seeking apartments. With assistance from Flambard Williams’ investment property consultants, you could acquire relatively lucrative apartments in the West Yorkshire city – and other major settlements including Manchester, Liverpool and Bradford.

Buying and letting an attractive apartment in Leeds in particular could help provide a strong foundation for your property investment journey… and, indeed, for what could later develop into a large portfolio of apartments in locations dotted across the UK. We wish you luck.

Filed Under: Money Tagged With: saving money

4 Lessons From 3 Years Of Frugaling

By Frugaling 12 Comments

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Typewriter
Photo: Dustin Lee/Unsplash

Three years ago I sat at my then-girlfriend’s kitchen counter, which looked out at the Pacific Ocean. The panoramic window looked on beautiful condos and homes nestled along the California coast. The weather was perfect, and there wasn’t a cloud in the sky.

Amidst this perfection, my heart sank with the weight of tens of thousands of dollars in debt. It was something that could stand in the way of relationships, compromise my job prospects, credit scores, savings, investments, retirements, and giving to others. I wanted to excise the morass of debt, but didn’t know how.

I started writing Frugaling as an aspirant — a mere amateur in the financial planning world. What could I know about saving money, making money, and changing my prospects? While I didn’t have all the answers, I had hope.

I could never have predicted what happened next.

By cataloguing my story, sharing my triumphs and travails, and being open the entire way, I benefited financially and emotionally. The former included about $40,000 in revenue. Something that would allow me to pay off almost all my debt. The latter permitted me to regain my breath — to relax once more. I was able to let go of most financial uncertainty stress.

Three years of Frugaling flew by faster than I could have ever expected. It’s hard to fathom where I was then and now. Much has changed. Here’s what I’ve learned:

The rules don’t apply evenly across populations

We don’t all start from $0, the same educational prospects, families, or social networks. We aren’t all born the same race. We aren’t each afforded a $1 million loan from our fathers.

Finance, while personal, goes beyond “personal finance.” After writing for years, it’s clear both in comments, criticisms, and critical thinking that society has great power in affording people the opportunity to succeed.

Whenever we talk about financial management, we need to consider multiple stories — not just our own.

People care deeply about food concerns

Some of the most popular articles have been about food. And I don’t think it’s an accident. When people look at their budgets, one of the highest lines is for food.

Food is often an area where people look to cut back on. Maybe you eat out too much. Maybe you eat too much. Maybe you spend too much on coffees.

More importantly, any little change in your food spending instantly affects your total spend for a month. Reduce the regular visit to your favorite restaurant, make a meal at home, and you can immediately see the benefit to your wallet.

Simple living, minimalism, and frugality are deeply intertwined

If we imagined a venn diagram, these three concepts would greatly overlap.

Those who enjoy canning, meal planning, and living simply are usually following the frugal life, too. Minimalism directly affects budgets, too. Reducing the urge to fill closets, cabinets, and stuff the remaining areas can help you save money every month.

I’m inspired from each of these concepts. I read — mostly checking out books at the library. I cook (or attempt to) at home. And I constantly look for ways to reduce extra stuff and refuse impulse buys.

Debt can suffocate its victims

Swimming in debt made me struggle for air, space, and time. How long would I have to live this way? How long would I be able to negotiate this rat race? I felt choked by the burden.

Many live like this — even middle-income earners. One way or another they find themselves in great debt and/or living paycheck to paycheck — always on the precipice of a missed house payment, medical bill, or job loss. Every day is a struggle.

Debt has a sneaky way of controlling lives and forcing people to work more, save less, and reduce time spent with loved ones. Debt can impact marriages, relationships, and family members. And oftentimes, it’s inescapable until the final dollar is paid off.

These lessons have taken years to understand and conceptualize — to convey them today. I’m honored and humbled you’ve taken the time to follow along, read, subscribe, tweet, and share.

Cheers to another three years!

Your frugal friend,

Sam

Filed Under: Save Money Tagged With: anniversary, debt, frugaling, frugality, Minimalism, planning, saving money, Simple Living

Why Trying To Be Happy Makes You Sad

By Frugaling 11 Comments

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Happiness of children
Photo: Geraint Rowland/Flickr

“Ask yourself whether you are happy, and you cease to be so.”
–John Stuart Mill

“Hose off before you come in the house!”

My brother stood there, covered head to toe in mud, shirtless and wearing an awesome grin. For the last few hours, we had destroyed my parents’ manicured backyard. With sticks and odd tools (we really needed a shovel), we carved into the grass and dirt until we had a small, 12-foot long canal of sorts. Then, we poured unknown quantities of water down our makeshift river. It was the perfect project for an unscheduled summer day.

When I think back to this moment, it’s easy to be nostalgic. Here, my brother and I worked tirelessly on a project without meaning or reason — just childhood fun. We both smiled back and forth, and were filthy by the end of it. It was a freedom that children seem to have that adults relinquish.

But happiness was an elusive quality back then. I know that during my childhood and adolescence, I felt sad much of the time. There were various factors influencing my sadness, but I know that internally something was off, too. I was desperate to feel “normal.” I was desperate for others to like me. Really, I was desperate to feel happy. Yet, I couldn’t be more miserable.

The media message of happiness

In the worst of moods, hardest times, and deepest depressions, all I wanted was happiness. It’s frequently been the mantra coursing through me.

The world around us says we deserve to be happy. Growing up, I had the unfortunate inclination and timing to enjoy shows like FOX’s The O.C. and MTV’s Laguna Beach. They each flaunted an inconceivable wealth and privilege.

They seemed happy, even in their dramas. It was an endless party for them, and I wanted in. The mundane aspects of life didn’t exist in these shows. Abnormally long bathroom routines, cooking breakfast, writing for hours, and listening to a lecturer drone on weren’t the focus of these “teenagers’” lives. No, the excitement was in the sex, fashion, and material wealth.

These shows helped craft a warped sense of drive towards income and status. Unfortunately, each step towards those goals made me more miserable. Happiness was eluding me.

Suppression of thoughts only causes more

Stop thinking about polar bears.
Stop thinking about polar bears.
Stop thinking about polar bears.

Have you stopped thinking about polar bears?

Oftentimes, to find happiness, people attempt to suppress thoughts/feelings of sadness. For short periods, individuals are able to say, “I’m not going to let myself feel sad.” And it sort of works. We can temporarily tell ourselves not to be sad. It’s just that over time we suffer from this forced suppression and rejection of feelings.

Researchers have consistently found that thought suppression doesn’t work longer term. What happens is that people frequently endorse an ironic “rebound effect” in feelings of sadness and are less capable at suppression later on. In other words, by forcing our natural emotions down and rejecting them, we do more harm than good.

“I’m just trying to be happy”

The consequences of our culture messages and thought suppression may be grave for both your happiness and budget. Oftentimes, people try to spend their way to happiness. Popular media spoon feed us a message that we deserve to feel this way, and that it is accessible through purchases.

When we can’t buy our way to happiness because our budgets are too tight, we feel sadness and unease. When we can buy material goods that are supposed to provide us lasting happiness (at least, that’s what the commercials suggest), we often continue to feel sadness and unease.

The traditional methods of “trying” to find happiness seem stale. There’s something wretched and moldy and overgrown. We’ve let corporate messages persuade us into thinking that Lexuses will make us better people, and in turn — finally — happy. We’ve let Coca-Cola re-brand itself repeatedly — most recently taking on the Internet and cleaning it up. We’ve let alcohol and tobacco companies objectify women to sell us drug-addled euphoria.

And yet, we’re still not happy.

Going with the emotional flow

I propose we smash these corporate-defined messages of success, achievement, and happiness. They’re not working for you, are they? Do their messages of pre-scripted happiness help? Do you watch beautiful people enjoy expensive goods and feel better about yourself?

If the solution was in our media, thought suppression, and material goods, we’d be the happiest people on Earth. Unfortunately, these methods don’t make us happier and they goad us into spending more money. There must be a better way.

As someone with a psychological background and soon to become a counseling psychologist, I hesitate to “prescribe” any one solution. We all come from different backgrounds, environments, and experiences. One size does not fit all, but I do have some propositions.

1. Change the end goal

Frequently, the reasons for saving, making, and spending money are aimed at satisfaction and happiness. It sort of sounds like, “I’ll be happy when I’ve earned a million dollars.” In framing our futures in this light, we’ve locked up an emotion for a later date. Until certain levels of wealth and material worth are achieved, people with these goals and ideals will experience emptiness.

It requires a certain level of mental flexibility, but if we can change the end goal, there’s hope for a better moment-to-moment life. Society says we should always be happy, but what will you say? Change the end goal to something like mental wellness and a fuller life may follow.

2. Learn to accept all emotions

As a counselor, I understand that many people grow up hearing these messages: “Stop crying,” “Cheer up,” and “It’ll be better next time.” Each of these negates the very real feelings beyond happiness that people might be feeling. They lay the groundwork for a life that will soon be happy — if only you’d stop being “weak.”

Life is not good or bad — happy or sad. When it’s boring or sad, we tend to spend more for excitement and happiness. It’s a self-medicated response that’s learned through the mass consumption of a culture that proselytizes this value.

Life is good and bad. There are swings of emotional highs and lows, and sometimes it’s boring and dull. That’s the real normal. If we can accept and think, “I’m sad right now, and that’s okay. At some point I’ll be happy again, too,” we’ll be better able to save.

3. Question anything that purports to provide long-term happiness

Hershey’s candy bars and BMW M5s can make us feel better. Likely, most of us have felt the joy of buying a treat. There’s this immediate headrush of excitement — from yum to zoom. But however much we might want it to stick around, it fades away.

Buying stuff is a short-term solution to long-term emotions. Feeling dull or down? Take a hit and buy something. Your immediate, short-term response will be happiness.

Instead, stay with it, don’t immediately try to “fix” your feelings. No purchase will ever solidify and halt emotional change forever.

Let’s define a new normal, where we accept our own and each other’s emotions — whatever they may be. Let’s recognize that no emotion is permanent, and that buying stuff should never be the long-term fix. Let’s learn to embrace the thoughts that scare us, because they’re only that — thoughts.

Filed Under: Minimalism, Social Justice Tagged With: buying, feelings, goals, Happiness, Happy, Materialism, Minimalism, Purchases, sad, sadness, saving money, Stuff, thought suppression

Frugal Articles of the Week

By Frugaling 2 Comments

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Reading Nook Photo

Today I wanted to feature a few frugal articles that caught my eye this week. Curl up in your favorite reading nook and enjoy. Hopefully these encourage you to live frugal lives!

7 Tips to Help Keep Your Resolution to Declutter by Joshua Becker
The new year is upon us! Lots of people create resolutions and goals, but few are followed. Joshua created a bulletproof list of 7 tips that’ll help you stay focused on decluttering and living with less.

Quit Whining About Your Sick Colleague by Daniel Engber
America has a productivity problem, and not because we aren’t working enough hours. The problem centers on overwork and overemphasis on the amount of hours put in at a desk. Engber skillfully takes the readers on a collision course with hand sanitizers and media hyperbole around the common cold, and then guides them to a treatise about work-life balance. Well worth a read!

How I Cut $10k in Spending in 2014 by Practical Cents
This month I’m going on a food diet. But in a different twist, I’m not watching calories — only my spending. In this article, Practical Cents breaks down how they cut $10k in costs over the past year. With an incredible table of savings and examples, P.C. makes it easier for readers to see how they too can save!

The Urge to Splurge by Sam (Yours Truly) Lustgarten
I won’t ruin the story, but I wrote about a recent date that was published on my favorite minimalism website, Becoming Minimalist. It centers on the external messages that we hear — both from individuals and advertisements. These messages can make us consume more than we would’ve otherwise. And can defeat our efforts at minimalism!

Breaking Broke by Stefanie O’Connell
Stefanie had a breakout 2014 and she’s looking to leave broke behind! In this stirring article, she talks about overcoming the stereotype of a broke, aspiring actor. She’s ready to take personal finance head-on and show readers how to make some incredible side income.

Filed Under: Save Money Tagged With: Article, Becoming Minimalist, Broke, Declutter, Frugal, minimal, Minimalism, Reading, saving money

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