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Frugal Living: The Ultimate Guide to Living Well (Without Looking Cheap)

“We’ve got to get our finances under control,” you tell yourself for the hundredth time as you review your bills. Money is a major source of stress in your household starting with out-of-control spending on credit cards.

Unfortunately that means you’ve put many of the things you value most on hold.

The trip you’ve postponed for years seems less likely every month. And you’ve just about given up on moving into that new house your family wants. Retirement is a concern as well, but you push it aside figuring you’ll end up working long after age 65 anyway.

You like the idea of frugal living, but you have serious doubts about whether it would work for you.

You fear it may be more like cheap living loaded with sacrifices. And the thought of being on a budget gives you a headache.

Looking like a cheapskate is another huge concern. You can already see the raised eyebrows when neighbors see you hanging clothes out to dry.

But what if big sacrifices aren’t required? And what if looking cheap isn’t an issue?

Imagine the joy of being free from financial stress and having more of what you really want.

Don’t worry. You won’t need to read a host of frugal living blogs and wonder which tips to follow first.

Everything you need to get started is right here in this comprehensive guide.

Not only is it packed with ideas you can put into practice right away, it also answers three critical questions: What does it mean to live frugally, but not cheaply? What are the benefits for you and your family? And how do you go about getting started?

Check it out. The payoff is enormous.

What Is Frugal Living?

Frugal living is a mindset that frees you from financial stress. It means consciously deciding what you really want and getting it by being creative with how you manage your finances.

When you adopt this mindset, your whole view of money and how you spend it changes.

It’s like finding a pair of magic glasses that let you see creative ways to save

money. And you’ll also clearly see that it’s your current lifestyle that holds you back, depriving you of what you want most.

9 Reasons You’ll Love Simple Frugal Living

You can retire early, start a business. Take more time off.

Do you really want to work at your job until you are 65? Or longer? If you love what you do the answer may be yes. But how about doing something you prefer at any age?

Maybe you’d like to start a business, take more time off or have control over your schedule. Or perhaps you want more than just a week or two of vacation time every year.

Whatever it is you’ll get there more quickly with frugal living.

You will stop saying “I can’t afford it.”

How often do you find yourself telling a friend “Sounds like fun, but I can’t afford it.” Or “I just know things will be better in a month or a year or a decade. I’ll join you then.”

Your disappointed friend finally stops asking knowing what the answer will be.

Wouldn’t you rather say “Yes, what a great idea.”

Lost your job? Does your car need a transmission? No worries.

Everything’s going great. You feel like your finances are finally under control. And then you get the bad news. Your car didn’t pass inspection and it can’t be fixed. Or you arrive at work to find everything locked up and a sign stating your employer is in bankruptcy.

Life happens to everyone. But when your priorities are in order and you spend smart you will be prepared.

Your bank will pay you (instead of the other way around).

Credit cards, home mortgages and car loans are great tools. And they also eat up your savings (especially the cards) when you overuse them.

Why not choose a lifestyle that puts a premium on saving. That way instead of you paying the bank to use their money, it pays you.

Your credit score will amaze you.

Your credit score impacts every aspect of your financial life. A good score means you pay lower interest rates on credit cards and mortgage loans. A mediocre score makes it difficult or impossible to get a car loan, or pay reasonable rates for insurance coverage.

Invest in a good credit score. It will save you tons of money.

You can splurge on unexpected opportunities.

It’s the end of the year and dealers are offering amazing prices on new cars. Or your travel agent calls about a deal on a trip to a place you’ve put off visiting because of the price. Your REALTOR® tells you about a big price reduction on a house that’s just come on the market, but you have to act quickly.

Whatever it is, if you have money put away for golden opportunities like these you can take advantage of them and save even more in the long run.

You’ll sleep through the night, every night.

There’s plenty of evidence that financial stress contributes to sleeplessness. If insomnia keeps you from performing well at work you could miss out on promotions or even lose your job.

If it’s your current money woes that keep you up at night consider the value of a good night’s sleep.

It’s Tuesday morning. How about a trip to the zoo, a walk in the park, or a leisurely breakfast on your back deck?

It’s a beautiful day. And a wonderful opportunity to take a hike, or sit on your front porch and wave at your neighbors heading off to work.

But in reality, you are locked away in a small office that may not even have a view. Your head aches, but you can’t leave until five at the earliest.

Wouldn’t it be great to take the day off? Or leave early knowing you can work into the evening if you have to? Flexibility is a wonderful thing, and definitely worth saving for.

You can invest in the future for big savings

You can often save substantially by buying in quantity or investing a lump sum up front. Opportunities abound from food staples to printer paper to insurance policies.

• Buy staples for your kitchen in bulk including everything from rice and beans to spices, canned goods and baking supplies. Similarly, save big by stocking up on sale items.
• With enough freezer space you can also buy meat (and other freezable items) in bulk and on sale.
• If they are expensive and you use them often (washing machines and dryers, lawn and garden equipment, vacuum cleaners), buy higher priced, higher quality but longer lasting items.
• It costs more to pay by the month. Instead choose quarterly, semi-annual or annual payment plans for insurance premiums, online courses, web hosting and other services.
• Use the money you save to pay off outstanding debts like car payments, your mortgage principal, or credit cards.

How Can I be Frugal but Not Cheap?

Being frugal is spending money on things you really want and saving the rest. Being cheap is shorting the waiter on tips, or skipping out on paying your full share of a joint bill.

To get clear on your values, make good spending decisions and avoid being cheap, start with three easy ground rules.

Rule #1: Choose from clear personal priorities

It’s easy to let circumstances (like the media or other people) influence your spending choices if your priorities are vague.

Imagine joining a friend for lunch. She orders a glass of wine and you think “why not?” When you get a whiff of fresh baked pastries you decide to enjoy dessert even though now you feel stuffed from lunch.

When your credit card bill arrives you wish you had skipped the wine, the dessert or both.

Over time, impulse buys like these turn into big debts.

If you instead choose based on clear personal priorities, you will stay on track with your goals.

Step #2: Take time. Spend smart.

When faced with spending decisions, don’t make a move before you stop, take a breath and consider your priorities.

If it’s a big purchase take a couple of days to determine if it’s something you really want and will use.

Do you really need a riding lawn mower, or the latest model phone? Would a low mileage used car serve you just as well as a new one?

Decide only after pausing to consider.

The urge to buy may fade. If it does breathe a sigh of relief. You dodged a bullet. Now you can put money you would have spent to better use.

Step #3: Let Your Creative Juices Flow

Creativity is essential to free you from current spending habits so you can buy what you value most.

Begin by checking where you spend your money now. Then let your imagination run wild.

Pick something small to start like your daily habit of stopping for gourmet coffee on your way to work. Then brainstorm alternatives, even if they seem outlandish.

You could give up coffee (probably not an option).

Or relish a nice cup of dark roast you brew at home and limit stops for gourmet coffees to once a week or on special occasions.

How about talking your boss into investing in a cappuccino machine for the office?

Better yet, imagine opening a successful coffee store and selling gourmet Joe to your former colleagues on their way to work.

When you set your creativity free, the options will astound you.

Frugal Living Ideas to Give Financial Stress the Boot

Creative budgeting (not cheap living) sets you free

You knew it was coming, the “B” word. The one you love to hate.

If you associate budgets with pain and sacrifice you will resist them all the way, a sure blueprint for failure.

Instead, why not view your budget as a roadmap to financial freedom?

Start with a clear set of priorities. Early retirement? More travel? Invest in a business? College education for your children? Eating out? Family time? Dream vacations?

Then observe your current spending patterns. Chances are they are habits driven more by impulse than careful consideration of what you value.

Brainstorm ways to shift your spending to be more in line with your priorities. Then design a budget to support that lifestyle. Be sure to build in some fun.

The eye-opening benefits of a spending break

Much of spending is unconscious and habitual. You go out to eat with friends because that’s what you’ve always done. Yet inviting the same folks to your home for a potluck barbeque could be even more fun.

One way to get a handle on unconscious spending habits is to take a break. Decide on a time frame, two weeks, three weeks, a month.

Then buy only the essentials, gas, food, utilities during that time. You may be surprised at what you do and don’t miss.

Now reassess your priorities and your budget.

Fun ways to save

Free and low-cost entertainment is easy to find.

• Enjoy a picnic in the park, hike on local nature trails, or visit museums.

• Attend free outdoor concerts and plays.
• Invite friends for an evening of dessert, card playing or board games.
• Cancel your cable and try a low cost, streaming service with no contract.

It’s not just books

Your local library is loaded with free things.

• Read magazines and newspapers (many available online)
• Download e-books and audio books or stream videos
• Borrow DVDs
• Find specialized research materials
• Join book discussion groups.
• Bring kids for story time.
• Reserve space for club meetings or non-partisan civic events and information sessions.

Patience is a virtue

How often have you paid full price for something only to see it go on sale a week or a month later?

If you don’t need it urgently like medication, a water heater or a roof repair, be patient. Most things go on sale or have seasonal price reductions.

Buy your next car at the end of the year, holiday décor in January and winter clothes in the spring.

Patience is an investment in the future. You’ll love the rate of return.

As good as new

If you’ve never tried thrifting, give it a chance. Yes you have to pick through some junk. But the payoff comes when you find quality used things from clothes to furniture to kitchen ware. With a little patience you’ll also find a surprising number of new items.

Over time you’ll see substantial savings. And no one needs to know where you shop (unless you tell them).

Frugal Living Tips With Big Impact

When less is more: The high cost of excess space

Is your house too big? Mortgage payments, insurance, taxes, HOA dues, repairs, renovations, landscaping and utilities take big bites out of your budget. The good news is, there is plenty of potential for savings.

Do you regularly use the extra bedrooms, the basement rec room or the dining and living rooms? Guest rooms are nice but how often do you have overnight visitors? Would it be cheaper to buy a smaller house and put occasional guests up at a B & B?

Are you passionate about working in your yard and investing in landscaping?

If you answered no to all or most of the above, consider a smaller, more energy efficient house with an easy care yard.

Alternatively, order an energy audit of your present home and upgrade it accordingly taking advantage of green discounts and tax savings.

Either way, sort through your belongings and get rid of what you no longer need. Even if you don’t go full minimalist you’ll be surprised at how much you’ve accumulated. Sell what you can to pad your savings account and get rid of the rest.

When all is said and done you may decide you don’t need all that extra space after all.

Preventive maintenance: Not just for your car

Good health pays big dividends. Here are a few tips to keep you fit and healthy.

• Cut the cane (sugar that is). Too much sugar has been linked to heart disease, cancer, weight gain, diabetes and reduced immune function.
• Drink more water. Adequate hydration helps remove toxins and maintain healthy muscles while it encourages younger looking skin. It also supports good digestion and can promote weight loss.

• Exercise. Countless studies show there are few health challenges that don’t benefit from regular exercise. Take up walking, play tennis or go for a swim. Make it a social activity. Ask friends to join you for fun and to hold you accountable.
• Eat at home. You will save money while you indulge in healthier, fresher food.
• Eliminate convenience foods. Not only are they pricey, but you will avoid excess sugar, unhealthy fats, salt and chemicals.
• Find a way to meditate that’s easy and practice daily for stress relief.

Eat well for less

A little forethought and creativity can help you save money on food and enjoy better health.

• Plan your meals and shop accordingly taking advantage of sales, store brands and bulk buys.
• Get creative. Become a vegetarian or a semi-vegetarian, a cheaper, healthier way to eat.
• Plant a garden. It’s a fun way to save money, get exercise and enjoy really fresh food. Sell the excess at the farmers market, or invite your neighbors for dinner.

Cut car expenses

• Automobiles cost a fortune to maintain. Could you manage with just one?
• Drive smart. Plan your trips and do several errands on the same day to save time and gas.
• Pay off car loans early.
• Review your insurance for potential savings.

Take a vacation (for less)

• Collect frequent flyer miles and use them for plane fare, hotels and car rental.

• Travel during the off season. The beach is still lovely in September.
• Use private mode when searching for plane fares. Otherwise you may see them mysteriously increase overnight.
• Try camping.

Frugal Living on One Income

Living on one income opens up whole new vistas.

• If you or your spouse want to go back to school, train for a different career or start a business, this is your chance.
• Think of the benefits of having someone at home for DIY projects and/or to supervise renovations that increase the value of your house.
• You’ll save on daycare.
• The stay-at-home spouse can plan and implement frugal living ideas so your family can enjoy even more of what you value in life.

Frugal Living Tips for Seniors

• Check for senior discounts on everything from eating out to theater tickets, travel and groceries.
• Review your insurance policies. Is there cash value you could borrow against to pay off higher interest loans? Are you paying for more coverage than you need now that your children are grown?
• Switch to prepaid cell service. Plans are available with unlimited calls and texts plus10 GB of shared data for less than $30/month. And you won’t have to worry about committing to a contract.
• Is it time to downsize? A compact energy efficient home is easy to care for and protects against rising utility costs. If it is designed for aging in place, safety features like grab bars, zero step entries and improved lighting can extend your time there and help prevent costly falls and injuries.

Have Fun with Frugal Living: Get Creative!

DIY (You might even discover a new hobby)

Instructions for most projects are available for free on YouTube. Call an expert when it’s essential, otherwise save when you do it yourself.

Trade what you have for what you prefer

When you are ready to let go of excess stuff you can sell it or give it away. But you can also trade it. Online barter communities make it easy.

Get cash for shopping

If you love to shop:

• Download the apps that automatically search for coupons when you are ready to check out.
• Join sites like Rakuten that put cash in your PayPal account when you make a purchase through one of their many member sites.
• Take advantage of legitimate mystery shopping opportunities

Rent things you never considered renting

Wearing the perfect stunning gown or tuxedo for a big event can be essential. But buying it and wearing it once is expensive. Instead rent it, wear it and return it. Same goes for equipment like carpet cleaners that you only use occasionally.

Say YES to the Joy of Living Well

Photo by Courtney Cox on Unsplash

Imagine a life where bill paying is easy. One where you don’t carry credit card balances and can splurge on big ticket items when they go on sale.

It’s a joy to come home to your new energy efficient house with its compact yard. And you finally get to experience the trips your family has been looking forward to for years.

Your spouse loves working from home on her new business surrounded by fresh cut flowers from the garden you planted together.

Best of all is the freedom from financial stress that lets your whole family sleep well at night, every night.

When you say YES to frugal living this life can be yours!