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When we started our debt free journey in 2019, we knew we had to learn everything there was about living frugally! If you are looking to pay off debt, buy a house, save for the future, or reach another important financial goal, learning to live a frugal life will help you get there.
What does it mean to be frugal?
I used to think living frugally was the same as living cheaply or living stingy.
This just isn’t true!
Frugal living is living with less stuff, less clutter, less stress, and more freedom!
In fact, most people that have a million dollar net worth live frugally.
This means they budget, save, and are 100% intentional with every dollar they make.
They give, invest, and YES, even enjoy their money!
You can’t get to millionaire status by spending like crazy, going in to debt, and trying to keep up with a “more is more” lifestyle.
Don’t be discouraged by the thought of frugal living.
I will show you how to live well, while spending less, and living a frugal life.
The Benefits of Frugal Living and Living Simply
Before you jump in to living a frugal life, you might want to know what the benefits are!
As I mentioned above, most people that have REAL wealth (not pretending to have wealth with credit cards), live frugally.
Frugal living allows you to save for emergencies, pay cash for things you want to buy, and feel less stressed because you aren’t as worried about money!
Frugal Living Tips with a Big Impact
- Keep housing expenses less than 25% of your income
- Learn how to create a budget and stick to it!
- Pay Off Debt to improve your household cash flow (don’t use credit cards for emergencies!)
- Stop eating out, and create a meal plan
- Use cash envelopes to prevent overspending
- Practice gratitude and contentment for the things that you have.
- Switch from a “large” cell phone provider to Tello. With plans as low as $5 to $39 / month, you can save hundreds in your monthly budget!
Related Post: How to Drastically Reduce Your Monthly Expenses
Frugal Living Tips for Families
- Take STAY-cations (Camp outside, take a road trip, or get a hotel in the “city” near you!)
- Use Amazon Prime to get free shipping and take advantage of “subscribe to save” discounts (Related: How to Save with Amazon)
- Host a monthly budget meeting so you can plan ahead for expenses.
- DIY your family Birthday Parties and other costly events.
- Search for travel deals in advance (6 weeks for the best flight deals!)
- Start a side hustle to earn extra “fun money” or savings.
- Use Trim to find and cancel your unwanted subscriptions.
- Shop an insurance broker like Zander Insurance to make sure you’re getting the best home and auto insurance rates.
- Adjust your heat and air by one degree (it really makes a difference!)
- Buy non perishable items (toothpaste, hand soap, birthday cards, wrapping paper), at The Dollar Tree!
Living Frugally to Save Money on Food and Drink
- Try a delivery service like Amazon Prime Pantry so you can plan your list and prevent impulse buys.
- Use coupons, or cash back apps like Ibotta
- Meal Plan to save BIG on groceries
- Ditch Starbucks or earn free Starbucks gift cards with Swagbucks.
- Buy in-season Fruits and Veggies
- Grow your own food and herbs
- Drink water instead of soda or juice
- Buy in bulk.
- Shop around for the best deals. Sometimes we will buy a few things at different grocery stores if the deals are worth the extra trip!
- Buy generic brands.
- Learn freezer cooking to save time and money! Free workshop here.
Frugal Living Tips to Save Money on Clothing and Shopping
- Use Cardpool to buy discounted gift cards
- Earn cash back with apps like Ebates
- Shop off season clearance sales (buy a coat in the summer, and swimsuit in the winter!)
- Research big purchases before heading to the store
- Stick to a capsule wardrobeand learn to create new, timeless outfits without shopping.
- Sell your outgrown or never worn clothes on Poshmark, and use the credit to buy something you love!
Frugal Living Tips to Save Money on Entertainment
- Negotiate rates on your cable and internet bill
- Cut cable completely (Use streaming services like Netflix, Hulu, HBO Now, or Amazon)
- Find a brick and mortar video rental store (they still exist!)
- Use the library for free movies, books, and activities for kids
- Bring your own snacks to the movies (you know you do it!)
Living Frugally to Save Money on Health Care, Fitness, and Beauty
- Use a health cost sharing ministry like Christian Health Ministries or Medishare
- Ask for a discount on large medical bills
- Do at-home workouts or take walks instead of a gym membership
- Use GoodRx to save on prescriptions
- Buy eyeglasses and contactsonline
- Dye your hair at home
Extreme Frugal Living Tips
We are not always this extreme, but these are some things you can do to really live on a dime! Here are some of my favorites.
- Make your own laundry detergent and cleaning products
- DIY your deodorant
- Save water by hand washing and drying your dishes and clothes
- Ditch your smart phone
- Rent out a room in your home on AirBnB.
- Become an extreme couponer
- Rent out your car when it’s not in use
- Walk or ride a bike everywhere to save on gas
There are so many ways to achieve living frugally every day, without sacrificing happiness and fun!
Which of these frugal living tips and ideas will you try?
Let me know in the comments!
FAQs
A simple life is not filled with complications and distractions, it is a life that is lived focused on things that matter to the person. It can also have varying extremes. For some, it's as simple as cutting their cable bills and getting rid of the TV, while others can go as far as living “off the grid.”
How can I live simply and cheaply? ›
I should note that I do most, but not all, of these tips.
- Go with one car. Many families have two or more cars. ...
- Go with a smaller house. ...
- Go with a smaller car. ...
- Rent rather than own. ...
- Look for used first. ...
- Eat out less. ...
- Eat out frugally. ...
- Brown bag it to work.
12 Tips for Frugal Living
- Choose quality over quantity. ...
- Prioritize value over price. ...
- Use credit wisely. ...
- Declutter regularly. ...
- Use a budget to guide your spending. ...
- Know the difference between wants and needs. ...
- Be a savvy consumer. ...
- Prioritize your values.
These seven tips may be able to help.
- Understand your current financial habits. Not sure how to start spending less? ...
- Create an effective budget and stick to it. ...
- Look for ways to reduce spending. ...
- Set financial goals for future success. ...
- Save for emergencies or major purchases. ...
- Pay down debt. ...
- Stay aware of lifestyle creep.
A simple life is not filled with complications and distractions, it is a life that is lived focused on things that matter to the person. It can also have varying extremes. For some, it's as simple as cutting their cable bills and getting rid of the TV, while others can go as far as living “off the grid.”
Where can I move for a simpler life? ›
Best US Cities for a Minimalist Lifestyle
| City | Rank | Self Storage Score |
|---|
| Salt Lake City, UT | 1 | 63.5 |
| Arlington, VA | 2 | 91.5 |
| St. Paul, MN | 3 | 82.0 |
| Madison, WI | 4 | 54.5 |
10 more rowsNov 20, 2023
Instead of thinking about saving $10,000 in a year, try focusing on saving $27.40 per day – what's also known as the “27.40 rule” because $27.40 multiplied by 365 equals $10,001. If you break this down into savings per day, week, and month, here's what you're looking at in terms of numbers: Per day: $27. Per week: $192.
How to be super thrifty and frugal? ›
50 frugal money-saving tips
- Plan meals. Meal planning is essential if you want to spend less money on your food shop. ...
- Choose cheaper recipes. ...
- Make a shopping list. ...
- Don't shop when you're hungry. ...
- Visit cheaper supermarkets. ...
- Buy supermarket own-label products. ...
- Eat less meat. ...
- Buy in bulk – but only if you'll use it.
Here are some of the things that smart frugal people never do.
- Pay retail. Alliance Images / Shutterstock.com. ...
- Ignore cash back. Prostock-studio / Shutterstock.com. ...
- Carry a credit card balance. Olha Povozniuk / Shutterstock.com. ...
- Ignore their health. ...
- Spend their whole paycheck. ...
- Use buy now, pay later. ...
- Waste food. ...
- Pay bills late.
Being cheap can be a personality trait, but it need not be a permanent one. It could be a habit developed because you grew up poor and wished for more money or possessions or it can stem from other insecurities. It's possible to change this behavior if you become more aware of it and are motivated to be less stingy.
What would cause a person to be an extreme cheapskate? - Quora. They may not be cheap - they may just simply not have the money and because they don't give or indulge, they are considered cheap. Others are unwilling to do their share of expenses. Or someone took terrible advantage of them in the past.
How can someone be cheap? ›
A cheap person is someone who is extremely price-sensitive. They would go for the cheapest possible option regardless of the quality or value. They would prioritize saving money over getting some nice clothes or going out for experiences. Whereas a frugal person would try and maximize the value they get.
How can I live comfortably poor? ›
One way is to live below your means by making wise choices with your spending. This may mean sticking to the basics (like food and housing) or cutting back on luxury items like entertainment or expensive clothing." Brian also suggests that "one of the best ways to save money on a low-income budget is to get creative.
Can you live on $1000 a month after rent? ›
Bottom Line. Living on $1,000 per month is a challenge. From the high costs of housing, transportation and food, plus trying to keep your bills to a minimum, it would be difficult for anyone living alone to make this work. But with some creativity, roommates and strategy, you might be able to pull it off.
How can I live a simple rich life? ›
It's about personal growth, nurturing relationships, staying healthy, and making an impact. Living a Rich Life means making your money work for you in a way that aligns with your passions and goals. That's the secret sauce.
How to save $10,000 in a year? ›
To reach $10,000 in one year, you'll need to save $833.33 each month. To break it down even further, you'll need to save $192.31 each week or $27.40 every day. These smaller chunks are much more realistic and simple to comprehend, making it easier to track your progress.
Is extreme frugality a disorder? ›
Fear of spending money or excessive frugality is sometimes known as Chrometophobia, a Specific Phobia related to money. Fears about spending money may also be involved in obsessive-compulsive disorder (OCD).
Is being a cheapskate a disorder? ›
The American Psychiatric Association defines frugality as a symptom of obsessive-compulsive personality disorder (OCPD) when someone “adopts a miserly spending style toward both self and others.” Extreme frugality is an amplified version of that, and it often involves viewing spending as a bad thing no matter how much ...
Is it good to save 10000 a year? ›
In 2023, the average American reported only having around $65,100 in personal savings—that is, nonretirement savings. While saving more money might be one of your financial goals, it can be hard to get started. Setting a goal to save $10,000 in a year is an ambitious way to boost your savings.
