Living frugal and the ability to keep a budget go hand and hand.  It’s hard to be frugal without living on a budget and hard to have a budget without living frugal.

1. Understand why you have a budget -  You might have thought it was a good idea, but if you don’t truely understand why you need a budget, you likely won’t succeed in your budget. The main reason to keep a budget? Spend less that you are earning,

2.  Keep a long term budget goal - Is your goal financial freedom?  Buying a house?  Keep a goal to work toward in mind. Keep this in mind when you sacrifice entertainment expenses and other livelihoods.

3. Know how much you earn: Remember to calculate the amount after taxes or you will wind up still spending too much.  Use the actual money you take home as a framework for the amount you budget.
4. Be Realistic: If you only earn 3,000 a month there is no way you are going to save 90% of it.  Sure you can cook all your meals and spend virtually no money on entertainment or switch to meals of water and rice, but there is no need to live uncomfortably.

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