In the age of consumerism, the art of frugal living is a skill many aspire to master. Kate Kaden, a YouTuber dedicated to frugal living, shares her realistic approach to saving money. Here’s what she had to say about cutting back on expenses without compromising quality of life.
Understanding Your Finances
Kaden starts with the basics: know what you make and spend less than that. It’s a simple concept but it requires discipline and a clear understanding of your finances. She emphasizes budgeting as a tool for financial control, which allows you to track your earnings versus your expenses, ensuring you don’t spend beyond your means.
“Spending beyond your means might be fun in the moment but overall just kind of causes stress,” said Kaden during an episode of her show. “It kind of makes you sleep a little less at night when you’re trying to figure out how to pay your bills.”
Pay Yourself First
One of the strategies Kaden advocates for is paying yourself first. This means setting aside money for your future before spending on less important things. She illustrates this with her own experience of paying extra toward her mortgage principal. By doing this, she reduces the interest she’ll pay over time, with the goal of paying off her mortgage much earlier than the given term.
Budgeting: A Crucial Tool
Budgeting is a recurring theme in Kaden’s strategy. She learned from Dave Ramsey to “assign every dollar a name,” meaning every dollar you earn should have a specific purpose. Budgeting gives you a roadmap for where your money should go each month, which is crucial when you’re aiming to reduce your expenses and save more.
Creating More Means
Living below your means doesn’t just involve cutting costs; it can also mean increasing your income. Kaden discusses how she uses her “five to nine” — the hours after her day job — to earn extra money. She does this by teaching dance classes and running her YouTube channel. Kaden encourages viewers to explore their own talents and hobbies that could potentially bring in additional income.
“I’ve got a full-time 40-hour-a-week job,” said Kaden. “Then in order to create more means I’ve got to earn some extra if I want to reach some of these financial goals.”
Finally, Kaden touches on the importance of making your money work for you through investments. While not an investment expert, she shares her positive experience with a Roth IRA and encourages others to look into simple investment options that can yield growth over time, emphasizing the power of compound interest.
Kaden’s approach is not about deprivation; it’s about prioritizing and making smart choices that align with long-term financial goals. She demonstrates that with a bit of creativity, discipline, and a willingness to learn, anyone can live frugally and well below their means.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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