by Raven Lebeau

Created on: March 13, 2009   Last Updated: February 08, 2010

Proponents of the “frugal lifestyle” find that maximizing savings while minimizing spending has rewards that go beyond the balance in your bank account. By moving away from a commercial, materialistic mindset, you can learn to enjoy the more important things in life like friends, family, and personal growth. Whether you seek to adopt the frugal philosophy or simply want to see your saving increase, here are a few tips for making the transition from spender to saver:

1. Find fun, free things to do.

Instead of paying up for tickets to professional sporting events, concerts, or theater performances, try attending a high school play or rooting for your neighbor's kids in pee wee football. Cut back on entertainment-related spending by using your local library to check out books and movies. Stay active by getting outdoors instead of paying for an expensive gym membership. Most importantly, do not use shopping as a recreational activity.

2. Set up an automatic savings plan.

By making some changes to your direct deposit forms, you can have a portion of your paycheck automatically deposited in a high-interest savings account. This is one way to make sure you will not fall out of the saving habit.

3. Learn to cook your favorite meals at home.

Eating out can bite into your budget. Instead of picking up fast food for lunch and take-out for dinner, start packing sandwiches every morning and learn to cook low-cost dinners at home. The savings will add up quickly.

4. Avoid stores.

Part of developing frugal habits is minimizing shopping trips. The more often you shop, the more likely you are to buy something unnecessary. Plan a weekly or biweekly trip to the grocery store to stock up on necessities like food and cleaning supplies. When you must make a non-routine purchase such as a household item or article of clothing, shop with quality as well as price in mind. An item is only a good value if it will last long enough to make sure that your next shopping trip is in the distant future.

5. Get in the habit of using energy and water responsibly.

You can lower your electric bill by getting in the habit of turning off lights when you leave a room, shutting down your computer after you use it, and keeping the thermostat high in the summer. To lower your gas bill, set the thermostat low in the winter and take short showers, which will also help you save on the water bill.

6. Have a plan for your “extra” money.

Taking all of the suggestions above will mean that you have money left over after all the bills are paid. Be sure to transfer this money to a high-interest savings account on a regular basis. Earning interest will help you build your savings without requiring any extra work on your part.

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