The ‘Hermit’ Savings Rules: 8 Frugal Tips for Today’s Economy
The ‘Hermit’ Savings Rules: 8 Frugal Tips for Today’s Economy
Cindy Lamothe Mon, November 25, 2024 GOBankingRates
When your personal finances combine with your personal space, your spending habits and savings account might be working a bit more harmoniously too. Consumer practices across the world have been altered significantly over the past few years — for obvious reasons and otherwise — in what economists have dubbed “the age of the hermit consumer.”
“For ‘hermit’ consumers, it can be really easy to make impulse purchases and overspend because of how easy and convenient shopping online is,” said Carter Seuthe, CEO of Credit Summit Consolidation. “Something that can be helpful to maintain a more frugal budget is just to define your expectations and priorities when it comes to the amenities you have.”
Whether it’s how you approach your visit to the grocery store or price-matching your favorite online retailers, the how, when and where you swipe your credit card has simply changed. If you embrace the hermit lifestyle and prefer your saving and spending to be done in a vacuum, below are some expert frugal living tips to thrive in today’s economy.
Embrace a DIY Mentality
“DIY is my new favorite hobby,” said Andrei Vasilescu, co-founder and CEO of DontPayFull. “It’s cost-effective, and YouTube is a great teacher. About 50% more people are getting into DIY now.”
Syed Lateef, business coach and CEO of SyedBNB, agrees. “We can all see it,” Lateef said. “The focus has shifted towards a more home-oriented lifestyle, and I can personally say that more people are embracing do-it-yourself (DIY) activities.”
He said this is a good thing because mastering basic skills for home and car repairs can lead to considerable savings. Simply put, it’s better to invest your time than a third of your paycheck every time you need some general maintenance or repairs done.
“Nowadays, the hundreds of online tutorials and resources makes it easier than ever to learn and perform these tasks ourselves,” he said, “reducing the need to hire professionals.”
Save Money by Cooking at Home
“The driving force behind the hermit economy isn’t entirely clear,” Lateef said. He said it could be due to the lingering hesitation for close-contact services, the increase in remote work or a shift in social values. Instead of dinner and a movie out, you can now meal-plan and binge on your favorite streaming service.
“What’s obvious, though,” he said, “is that consumers are now more inclined to spend on home-centric activities.”
As a result, he said, many followers of the FIRE (financial independence, retire early) movement have come to realize that frequent dining out can be quite costly. So, frugal individuals are embracing the art of cooking at home, experimenting with budget-friendly and nutritious meals.
He added, “Hermit consumers save money but also encourage healthier eating habits.”
Focus on Secondhand Finds
Repurposing secondhand or vintage items such as clothing or home decor is both economically and environmentally friendly. In the current economic climate, looking at secondhand alternatives before buying new is a wise strategy, Lateef suggested.
“I believe that the ‘hermit’ consumers are now placing more emphasis on sustainability because of the pandemic, so shops like thrift stores and online marketplaces are trending because of the treasure troves of affordable, yet quality items.”
In terms of frugality, he said, this not only helps save money but also aligns with sustainable practices by repurposing and recycling items.
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