Talk to a debt counselor toll free:800-300-9550
Our Clients Rate Us Excellent
Based on 3234 reviewsTrustPilot Reviews
Frugal lessons can help you make the most out of your financial resources. If you really want to start living a frugal lifestyle, you can find a lot of role models out there. It is just a matter of finding the right person that you will emulate. Believe it or not, a frugal budgetcan help you improve your finances exponentially. If you want to increase your net worth, you can accomplish that faster if you live frugally. Here’s how it works. The key in growing your finances faster is to invest your money. It is simply putting your money where it can earn you profits through interest gains. It is like making your money work for you. But to be able to invest, you need to free some money from your budget so you can invest it. This is a problem if most of your income is being used for expenses and also to pay off your debts. How can you free some money from your budget if it is already allocated to various spending categories? The answer to that is to live a frugal life. You need to lower your expenses significantly so you have the extra money to invest in stocks, bonds, and other accounts. If you doubt the ability of frugality in growing your finances, you need to get to know the Debt Ninja. He is the person behind PunchDebtInTheFace.com. If you are wondering why he adopted the name Debt Ninja and named his site as such, he gave a very simple answer: he owed some debt and he wanted to punch it in the face. Here’s the simple story of the Debt Ninja that can give you various frugal lessons. He started out with $28,000 worth of student loans and he held a job with the government - which meant he is not earning a lot of money (only $38,000 a year). When he proposed to his girlfriend, he knew that he did not want to bring his debt into the marriage. He and his wife made a commitment to live below their means so they can improve their finances before they got married. And guess what? After a few years, they went from a negative $28,000 to being worth $400,000! Their secret? It was a combination of a lot of things actually. First off, Debt Ninja paid off his debt fast - 2 ½ years of $28,000 student loans. They also contributed to their retirement funds, saved for a down payment ($100,000 in 3 years) and managed their money wisely. Guess how they did that? They lived well below their means. That is what frugality can help you accomplish. Frugal living is all about spending only on what is important and not being extravagant - even if you can afford it. If the Debt Ninja can reach a net worth of $400,000 at a young age, it is possible for you to get that too. Take note that the Ninja and his wife achieved this without the help of a generous monetary gift or inheritance. All of it was caused by proper financial management and of course, frugality.