Key Takeaways
- Sometimes the best way to kick-start change is to accept a new challenge.
- The Frugal February Challenge has four easy-to-follow steps that anyone can follow.
- Once you complete the challenge, take your savings and put it towards something important.
Remember the Ice Bucket Challenge? Believe it or not, that was back in the summer of 2014. It went viral and raised $115 million for the ALS Association!
Well, we’ve got a challenge for you as well. It’s the Frugal February Challenge from Yahoo! Finance. You can break it into four parts, with one week for each part.
Week One is audit bill week. Go through all your transactions and search for the services you’re auto-paying. You know the ones – maybe they started out as free trials for the first 30 days. Or maybe they started out as something you used all the time, but have since lost interest in. They may be $9.95 or $0.99 per month, but they add up, so cancel them if you’re not using them. Be sure to add up what you’re saving by doing this.
Week Two is no online shopping week. Go a full week with no packages arriving on your doorstep. Then take a look back at what you’ve averaged each week for your online purchases. Take that average and add it to your Week One savings.
Week Three is cooking meals at home week. No eating at restaurants or ordering carry-out. Your goal for the week is to grocery shop and prepare your meals at home. Again, take a look back at what you’ve averaged on restaurant meals and add that amount to your savings for the month.
Week Four is discount service week. Check out sites like Rakuten, eBay, and retailmenot.com to find discounts on items you’re purchasing. There are many such options and, with just a little research, you can usually find a better deal for most purchases.
At the end of the four weeks, add up your savings for the month of February. The next step is really important: take that money and set it aside for your emergency fund if you don’t have one. Or set it aside for a vacation you have planned. Or put it into your savings account so you don’t end up just spending it in March.
Hopefully, some of these Frugal February habits will stick. And next February, you can go through this exercise again. So take the challenge – it won’t be as cold as the Ice Bucket Challenge, but it’ll really warm your pocketbook! Until next time, enjoy.
