Brigid C. has always been careful with her money. As a member of Generation X who grew up in tough economic times, saving is simply a way of life for the 49-year-old Utah resident. “Saving money is just ingrained in me,” she said. “It’s not about being cheap, it’s about being aware of where my money is going.”
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From housing costs to discretionary spending, Brigid has developed smart habits over the years to keep her finances in order. Here are the top eight reasons this frugal Gen Xer remains laser-focused on saving.
Pay yourself first
“I know the importance of paying myself before anyone else gets paid,” Brigid said. She makes saving a priority by automatically transferring 15% of every paycheck to her retirement accounts and separate savings buckets.
“It’s money that I don’t see, so I don’t miss it. “Putting myself first ensures that I’m always moving forward in my goals,” she said.
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Limiting housing costs
Having watched friends struggle with mortgage payments during the housing crisis, Brigid has always rented modest apartments to keep her housing costs down.
“Rent is my biggest monthly expense, but it’s still very reasonable at $875 for a two-bedroom,” she said. “I could afford a mortgage, but I prefer the flexibility of renting to avoid being home poor.”
Embracing a used car lifestyle
Brigid drives used cars and keeps them for over a decade to minimize shipping costs. Her current vehicle is a 2008 Honda Civic that she bought for $6,000 three years ago.
“I’m not worried about having a nice car because that’s not a priority for me,” she said. “As long as it’s reliable and the cost of ownership is low, I’m happy.”
Cooking at home
Except for weekly lunches with co-workers, Brigid rarely dines out to save money. “I almost always bring lunch to work, and I cook dinner at home,” she said.
Her grocery budget of $300 a month allows her to buy healthy ingredients while avoiding expensive restaurants.
Cutting entertainment costs
“I have a pretty minimal entertainment budget of about $100 a month,” Brigid said. She takes advantage of free community events, hikes nearby canyons, borrows books and movies from the library, and hosts a monthly game night with friends to keep entertainment costs down.
Buying second hand
From clothing to furniture to home decor, Brigid’s seeks out quality used goods. “I get excited about finding good deals,” she said.
She frequents thrift stores, yard sales and Facebook Marketplace. “So many things are perfectly usable, you just have to put in a little more effort to find the good stuff,” she said.
Avoiding debt at all costs
Brigid has not carried consumer debt such as credit cards for over 15 years. “I made some poor spending decisions in my 20s, but seeing the interest accrue on those balances was a real wake-up call,” she said.
Now she uses cash or debit cards or throws things away if she can’t pay out of pocket.
Being happy with what you have
At the end of the day, Brigid credits her satisfaction with allowing her to remain frugal. “I am satisfied with my lifestyle. I don’t need much to be happy,” she said. “This gratitude for what I already have keeps me from pursuing more things that will only weigh me down financially.”
Because of her saving and spending habits, Brigid’s finances are doing well. She currently has over $175,000 in retirement savings and a $50,000 emergency fund. “My frugal approach can feel limiting at times, but it’s allowing me to reach my goal of retiring comfortably one day,” she said. “For me, that long-term security is what makes the small sacrifices worth it.”
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This article originally appeared on GOBankingRates.com: I’m a Thrifty Gen X: 8 Reasons I Remain Committed to Saving Money
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