5 Frugal Habits That Expert Barbara Ginty Swears By

In a world where spending money seems almost as effortless as breathing, cultivating frugal habits has become an art form. Whether it’s buying clothes while shopping online or making impulse purchases of household items at Target, living frugally may be easier said than done. Enter Barbara Ginty, a financial expert renowned for her practical and effective strategies to save a lot of money, provide comprehensive financial planning for your investment strategy and help you build wealth.

With years of experience under her belt, Ginty shares invaluable insights into the frugal habits that have not only transformed her own financial life but also inspired countless others to take charge of their money. With emphasis on the value of continual learning and increasing your financial literacy about personal finance and retirement planning, see how Ginty’s advice can help you paint a better financial picture for your future. 

Ginty can also help you stay informed about financial trends, investment strategies and money-saving tips to keep you empowered to make informed decisions that benefit all of your money moves. Here are five frugal living tips from Ginty you can take to the bank.

One of Ginty’s core principles is precision budgeting, which helps you both create and achieve your savings goals. This involves breaking down expenses into specific categories, tracking every dollar spent, and regularly reviewing your budget to identify areas for improvement. This level of detail ensures that no money slips through the cracks unnoticed.

You can also focus on investing wisely. Beyond saving, Ginty often emphasizes the importance of creating an investment strategy that works for you for long-term growth. Whether it’s through retirement accounts, index funds or real estate, she encourages individuals to understand their risk tolerance and invest in assets that align with their financial goals.

“Bad advice is the idea that there is a quick way to build wealth. Wealth takes time. Building it is boring … I see too many people trying to get rich quick. The hot stock tip generally doesn’t work out, and that is more akin to gambling versus long-term investing.”

Barbara Ginty

Ginty emphasizes the importance of mindful spending, where every purchase is a conscious decision. By asking yourself if a particular expense aligns with your values and goals, you can avoid impulse buys and focus on what truly matters. According to Ginty, this is especially true when it comes to big-ticket purchases like real estate or cars.

“Buying a house before you can afford it is another financial misstep I see often. There is a lot of societal pressure to buy a house, but you need to be financially prepared before you do. Once you own a home, there is constant upkeep, which involves both time and money.”

As an advocate for automating your savings wherever possible, Ginty promotes setting up automatic transfers to a savings or investment account. This ensures that you consistently save a portion of your income without the temptation to spend it elsewhere. 

This “paying yourself first” approach is a cornerstone of building long-term financial stability. Treat yourself like an employee and cut yourself a check out of your paycheck. Ginty says:

“Pay yourself first. I believe in saving first and spending what is left after you have saved for your various financial goals. You can always rotate various areas of spending to help meet savings goals. For example, eating all your meals at home can help bolster your vacation fund.”

Preparing for the unexpected may seem counterintuitive, but having savings that can cover and absorb any financial shocks — such as job loss or medical issues — can help keep a bad situation from getting worse. Here is what Ginty advises you keep in your emergency fund:

“At least six months of essential spending at a minimum. If you have more dependents, you could work towards 12 months. The great news now is your emergency fund can make money since we have good rates on high-yield savings accounts.”

The good news is that you just got a pay raise, but the bad news is that you may not be maximizing the potential of that income boost. You’ve already been able to live off of what you were making so it’s almost as if you should pretend you got no raise and put it all in savings. On this topic, Ginty advises: 

“When you get a raise or pay increase, it is always a good idea to increase your savings, since you are not used to living on the new income. An easy way to do it is to split the increase with yourself: half for today and half for your future.”

Living a frugal lifestyle does not mean you have to be cheap or even overly sacrifice your creature comforts. It simply means you think more thoroughly about how and why you spend your money. Here are some tips to get you started down a path that Ginty would give a stamp of approval: 

• Cook at Home: Eating out can quickly add up, so Ginty promotes cooking at home as a frugal and healthier alternative. By planning meals, buying ingredients in bulk, and mastering a few versatile recipes, you can enjoy delicious meals while saving significantly on food expenses.
• Embrace DIY Projects: Whether it’s home repairs, gardening, or crafting gifts, Ginty encourages embracing do-it-yourself (DIY) projects. Not only does this save money on hiring professionals or buying expensive items, but it also fosters creativity and a sense of accomplishment.
• Negotiate and Comparison Shop: Ginty is a firm believer in the power of negotiation and comparison shopping. Whether you’re renewing a service contract, purchasing a big-ticket item, or even shopping for groceries, researching prices and negotiating for discounts can lead to substantial savings over time.
• Maximize Rewards: Maximizing rewards from credit cards, loyalty programs, and cashback offers. By using credit cards responsibly and taking advantage of rewards programs, you can earn points, miles, or cash back on your everyday spending, effectively reducing your overall expenses.