A few weeks ago I posted Top Ten Things to Reconsider (or Remove) to Live Frugally, and in this post, I’d like to continue as these are the things most of us have but don’t realise that we can live without them if we want to live frugally:
1. Credit Card Fees
Credit cards are not necessarily ‘evil’. I have a credit card, Coles Master Credit Card, that has no annual fee and the reason why I use that credit card is that I earn Flybuys Points which enable me to redeem $10 off shopping groceries at Coles Supermarket whenever it reaches 2000 flybuys points. So it’s like free money, as long as I pay the total balance instead of just the minimum requirement that has an insane amount of interest.
It is also a bit tricky to cancel a credit card that has an annual fee, so therefore, the calculation has to be done carefully. For example, if your credit card fee is $22 per year but you can save $100 per year on other things and discounts that you actually need, then keep it. Otherwise, ditch it. You will need to familiarise yourself with differentiating between your wants and needs. Here is a post to help you become aware of the difference between wants and needs.
2. Interest on Debt
In other words, don’t have debt so you don’t have to pay any interest. Live below your means and if you do have debt(s), try your best to pay them off as quickly as possible.
3. Unlimited Plan Mobile Phones/Cell Phones
Unless you use your phones for business or coordinating most of the social activities that you really can’t avoid not using a phone, you should always opt for a prepaid mobile phone instead of an unlimited plan one. You need to ask yourself, what’s the point of paying a $55 plan if you only use $5 per month. That ‘emergency long call’ may just come once in a blue moon. A $55 plan per month is $660 per year. A $5 per month is $60 per year. $600 difference. Supposed there’s an ‘emergency long call’, it won’t be a $600 worth of call. Therefore, do your calculation properly.
4. Electric Dryer
Instead of owning a drying machine to dry your clothes, dry your clothes outside under the sun. Not only saving on electricity bills by not having a dryer, but you’ll also have more space in your house.
5. Air Conditioner (AC)
Not only cools down the air but AC dehumidifies it as well. It can leave you dehydrated: it can dry out your skin, mouth, throat and other parts of your body. Not to mention the electricity bills that come with it.
Having a fan is a better and cheaper option than having an air conditioner to cool down your house during summer.
Share Your Thoughts
What about you? Have you started removing any of the above? How does it affect your daily life? Do you feel more liberated or… miserable? Please share your thoughts below.
