10 secrets of the ultra-frugal that might just work for you

Many ultra-frugal folks are very satisfied with their lives. Here are a few things they’re doing that might work for you.
Often they aren’t earning a great deal more money than others. Instead, they configure their whole life based on 80 per cent of their income. In other words, they live off of less money, which allows them to save the difference.
If you wanted to apply this principle, what would have to change for you to reduce your expenses by 20 per cent? Maybe you’re selling a second car or scaling back on meals out?
It’s always being followed, checked up on, tweaked and monitored. The ultra-frugal have a clear plan for their spending, and are willing to swap savings in one category to shore up another. They’re on top of tracking their spending and know instantly where costs are rising or falling.
Apply this principle by following a budgeting system you like. Input your income and expenses. Cut out anything discretionary that’s not making your life better. 
The game of “keep what I’ve worked so hard to earn” is always being played by the most frugal. No wonder they’re keen on finding a deal, and are willing to wait for sales and coupons. When there is a bargain, they hop to it, and capitalize on the sale. They’re not afraid to cash in loyalty points or buy something second-hand, either. 
Using deal-finder apps, coupons, comparison shopping and monitoring sale seasons like Cyber Monday or Boxing Day, you can be a deal hunter, too. 
It’s called good debt, and it’s typically secured against an asset that is anticipated to grow in value. The ultra-frugal use lower interest debt to buy real estate, grow their businesses (if they’re owners) and invest, but they steer clear of carrying high-interest balances on credit cards and lines of credit. In other words, to them, consumer purchases are not worth going into debt for. The ultra-frugal are also very careful not to overdo it with good debt either — making sure they can truly afford that mortgage without ruining their lifestyle, as an example. 
Make the distinction between good and bad debt. Now, make a plan to clear high-interest debt balances as quickly as possible. A debt consolidation might be an avenue to explore, or paying it down using the snowball method (a little extra every week on the highest interest balance until it’s gone, then move on to the next).
Yes, the ultra-frugal DIY a lot of stuff — David Cheriton (early investor in Google who is worth billions) apparently still cuts his own hair and drives a decades-old VW — but, these folks know when to bring in the pros to help with their money. Most don’t build their own financial plans, but work with a financial planner, money coach or investment adviser to design a comprehensive plan that takes into account taxes, investment growth, risk and life needs.
If you’ve been DIYing your financial plan and investments, pause and get a professional second opinion to see if your strategy is really working. A telltale sign it’s not working is if your investments aren’t keeping pace with at least the growth in the market.
The habit of investing regularly is cited as the top ingredient to financial success by the ultra-frugal. Even during lean times when they weren’t making as much, they scaled their contributions to fit with what they could afford, versus stopping them completely. 
Starting your investing journey? I recommend a weekly or biweekly contribution into your investments that is small and meaningful. Then, see if you can nudge up the amount by a little bit every two to three months. You’ll love watching the money grow and know you’re doing something great for your eventual retirement.
It’s not tax evasion. They’re simply doing things that help reduce their taxes such as making RRSP contributions, donating money to charity and ensuring that they are deducting eligible expenses like child-care costs and taking advantage of credits, like the medical tax credit. They’re also growing money inside their TFSA, tax free.
A tax professional, or reputable tax software in simple cases, will help ensure you’re filing your taxes correctly. But, it’s a financial adviser you’ll want to engage with ahead of time to help you understand how best to structure your money to reduce taxes.
Tax refund, commission payout, proceeds from some kind of sale; frugal people have a plan for extra money. Many follow a prescribed formula like spend 20 per cent, clear debt with 40 per cent and save the remaining 40 per cent.
If you don’t yet have an emergency fund with three months’ worth of essential costs tucked aside, use lump-sum money to build an emergency fund in a high-interest savings account. You’ll feel relieved knowing it’s there.
Financial misalignment is costly. The ultra-frugal keep the lines of financial communication open with their partner. They’re budgeting and planning their finances as a team. When tough stuff comes up, they aren’t afraid to get help if they can’t work through it independently.
Get on the same page with your honey by setting up a money date every month where you can review your budget and talk through any financial challenges you’re facing.
The ultra-frugal find daily motivation to keep being frugal because they understand that their money gives them flexibility. Simply knowing they can retire, take a sabbatical or help their kids are the real reasons to keep being frugal.
What’s your real motivation for having better finances? If you can anchor on that, budgeting, paying off debt, changing jobs for more money and cutting costs gets easier.