Frugality is the act of saving money by reducing expenses. Living frugally can help you live well on less than you are. This can enable you to save and invest the difference, or to reduce the amount of time you spend working.http://zenhabits.net/the-cheapskate-guide-50-tips-for-frugal-living/In order to live frugally, you need to take a critical look at what you want versus what you need, to help determine what expenses can be eliminated or reduced.

Being frugal takes common sense, wit, and quite a bit of self control. This guide to how to be frugal will give you some tips that will help shape your spending, and make you better at saving money

1. You'll need a place to write and organize the information you collect. You could use a full size notebook, but if you would like a free solution you may want to use your email or a service such as Google Docs.
2. You'll also find a pocket sized notebook and a pen or pencil handy to jot down notes and information when away from home. You can improvise a notebook out of folded scrap paper.
3. A calculator will come in handy to help track expenses and calculate savings.

before you can make changes, you need to track your spending habits so that you understand what you are spending and why you are spending the way you are. By acting on your observations you can make an effective change to your spending habits saving money and living frugally.

1. Keep a note pad with you and jot down everything you spend money on.
2. Write the name of the item and the cost.
3. Write next to each item if it is a "want" such as a DVD or video game or a "need" such as an electric bill. Some things can be either a want or a need. For example eating a meal is a need, but going out for fast food may just satisfy a want.

At the end of each day, transfer your notes into a master document that tracks all of your spending while separating wants from needs. At the end of each week examine each item thoughtfully:

1. Does an item you picked up have the ability to save you money in the long run? Items such as water saver shower heads or a travel coffee mug would fall into this category.
2. Is there a cheaper alternative for an expense? For example, if you see you are spending $5 a day on lattes, you may want to consider making your own coffee and bringing it to work in a travel mug vs stopping at a coffee shop.
3. Can you eliminate the item completely or replace it with a lower cost alternative? For example, an afternoon can of soda can be replaced with a glass of tap water.
4. Identify recurring expenditures so that you'll be able to identify savings opportunities. If you know how much meat you use in a month, you'll be know how much to stock up on when meat goes on sale.

Examine your major bills the same way. These would include expenditures for utilities, car payments, cable, phone, and insurance, to name a few. After you have decided which expenses you can't eliminate, focus on ways to reduce the cost of the services you want to keep.

1. Try negotiating with your provider for a lower payment. Cable companies may offer you a new customer incentive if you mention you are thinking of switching.
2. Do some price shopping to to see if you can find a less expensive provider?
3. Are there actions you can take yourself to reduce the bills? Can you let it stay warmer in the summer and cooler in the winter to limit heating and cooling bills?

You can save money by doing things yourself, instead of outsourcing them. This can be as simple as eating in, rather than going out to dinner, or ironing clothes rather than sending them to the cleaners. Consider learning how to repair a hem, change the oil in your car, or paint a room to keep more money in your pocket.

While examining expenses can help you begin to live frugally, there are some major steps you may want to consider to save even more.

1. Give up the second or third car.http://zenhabits.net/the-cheapskate-guide-50-tips-for-frugal-living/ If you live near public transportation, you may want to give up your car altogether, relying on rentals or services like Zip Car when you need an automobile. You'll not only save the cost of the car, but you'll save ob repairs, fuel, and insurance.
2. Move to a smaller house.http://zenhabits.net/the-cheapskate-guide-50-tips-for-frugal-living/ Less space means less room for costly "stuff", as well as lower utility bills. Downsizing will also generally free up cash you have tied up in the house.
3. Replace a vacation with a "staycation", saving the money you would spend on travel and hotel by enjoying your home town as a tourist.