I get it. The last thing you want to read about is frugal living. And you’re not here because you want to be — you’re here because you need to be.
You’re struggling. You’re stressed. You’re tired.
You lie awake at night wondering how you’ll possibly pay all your bills on time. And even the horrors of being homeless have crept into your mind…
You’ve been living beyond your means, scarcely getting by from paycheck to paycheck, far too long. And it’s catching up with you.
You long for peace of mind and financial security, but don’t know how to achieve them.
Sure, you’ve heard about budgets and living like a cheapskate, but who wants all those restrictions? And how can anyone possibly enjoy living that way?
I know exactly how you feel. I’ve experienced sleepless nights too. And I also resisted the idea of frugal living. Until I learned more about it, that is.
So what if frugal living didn’t have to be a drag?
What if you could get excited about the benefits of budgeting? And what if you could look forward to fixing your finances?
Stick with me here. I’ll show you what I’ve learned about frugal living and how it’ll make your life better. We’ll get through this together — as quick and painless as possible. You may even have some fun!
Why a Frugal Lifestyle Is a Smart Lifestyle
Frugal living can give you peace of mind.
Frugal living can help you pay your bills on time.
Frugal living can give you financial security.
And these are just a few of the many benefits frugal living offers. Some other enticing possibilities are:
- Early retirement
- Financial independence
- Having an abundance of cash in savings
- Paying off your mortgage early and eliminating other debt
- Financial resilience
- More vacations and travel
- Available funds for future education
- Freedom to start your own business
- Investment options
- Ability to accept your dream job (regardless of salary)
Ultimately, living a frugal lifestyle helps you get what you want.
Isn’t that compelling enough?
Whether you just want to get back on track financially and pay your bills on time, or you have big goals and dreams, frugal living will help you succeed. It’s a smart lifestyle that sets you up for financial success and unlocks a world of possibilities.
So go ahead. Write that bucket list…Make plans…Set goals…Dream BIG.
Because frugal living can make it all happen.
What Does Frugal Living Mean?
Since it’s common to have misconceptions about this lifestyle, let’s do this backwards and first define what frugal living doesn’t mean. (Or at least what it’s not supposed to mean.)
Frugal living ISN’T about:
- Restricting your spending to the point of misery
- Depriving yourself of things you love and enjoy
- Living like a cheapskate or being stingy
- Spending all your spare time searching for coupons and deals
So, if you too were under the impression that frugal living would just take, take, take, I implore you to open your mind to a new belief.
Frugal living empowers you to take control of your life and your finances. It’s about being intentional and purposeful with how you save and spend money — prioritizing your spending on things you value most, while cutting back in less important areas.
Frugal living doesn’t subtract from your life; it expands your knowledge of how to manage money, spend wisely, and live creatively.
Lucky for us, there’s no definitive definition of frugal living. It means different things to different people.
And YOU get to forge your own path to discover and define what frugal living means for you. Sounds intriguing, right?
Let’s get you started on this amazing journey.
How to Live a Frugal Lifestyle
Think about it. What are your priorities, goals, and dreams? How do you want to live?
Knowing these answers will help you create a plan that leads you where you want to go. (This is one of the fun parts!) And having a plan is key to living a better life.
Let’s start with learning how to apply a few primary principles of frugal living: budgeting, smart spending, and creativity.
The Blissful Budget: Manage Your Money
A budget is not all about restricting your spending. It’s a vital tool that tracks how your income is spent each month. This means you can stop wondering where the heck all your money went after your paycheck seems to have magically disappeared.
Remember that plan we just discussed? Your budget is a big part of that plan. It focuses your spending and savings on the things most important to you, and it ensures you consistently have enough money to pay every single bill.
Feel that stress melting away yet?
So, the first thing to do is create a budget.
I know, I know. This doesn’t sound fun at all. But I’ve included some handy links below to make it easier, and you can choose the kind of budget you’d like to try first. I promise, this will be worth it.
Start simple and make adjustments as needed. Experiment with different types of budgets to find what works best.
Note: The budget you create should improve your life — not make you miserable.
For a quick and easy budget, check out: The Fastest Way to Create Your First Budget
For in-depth knowledge about budgeting, here’s an eight-part series:
Budgeting For Beginners: The Ultimate Budgeting Series
To learn about Zero-Based Budgeting, where each dollar is given an assignment, read: Zero-Based Budgeting: When Spending Your Whole Paycheck Is a Brilliant Move
To learn about the 50/30/20 method, which allocates percentages of income to three different areas, look at: The 50/30/20 Budget: Is This Budgeting Method Right for You?
Spend Money Wisely
Taking control of your finances is a powerful action. Wouldn’t you rather feel powerful and confident instead of weak and stressed?
Smart spending means being intentional with how you spend money. You’ll prioritize purchases based on what you truly value and those things that’ll move you closer to your goals. In other words, spend less on unnecessary items so you can spend more on things you value.
For instance: Rather than buying brand name groceries, purchase less expensive generic items and put the saved money towards your vacation fund. Or, instead of buying a brand new car, purchase one that’s a few years old and use the saved money to pay off debt.
As you focus on reaching new financial goals, it’ll become clearer as to what you should (and shouldn’t) be spending money on.
Be Creative and Learn New Skills
Regardless of what you may think, you do have the ability to be creative. Living frugally will encourage you to use this skill. You’ll learn to be more resourceful and explore alternate options to get what you need while saving money.
For example: If you’ve already cut expenses but need to free up more money, ask yourself:
- What are some things I can do without?
- What items can I make at home instead of purchasing?
- What tasks can I learn to do myself instead of hiring a professional?
Rather than buying new clothes, create different ways to wear the clothes you already own. Google how to make your own gifts, skin care, and cleaning products. Find videos and tutorials on how to do simple repairs around the house.
This is creative thinking. Try to have fun with it. Being creative not only saves you money, it also enriches your life. By learning how to do different practical tasks, you’ll discover new talents and skills. You’ll learn more about yourself, take pride in your accomplishments, and become more confident. Sounds good, right?
Take this “crash course” if you’d like to learn more about creative frugality.
Follow Simple Frugal Living Ideas and Tips
Making small, gradual changes will help you stick with your plan long-term. Review the simple frugal living ideas and tips included in this guide and choose a few to get started. Experiment with different tips and make any necessary adjustments until you find what works.
Since you’re making a significant lifestyle change, be patient with yourself as you let go of old spending habits and adopt new ones. When you make mistakes, simply start again and keep moving forward.
How to Live Cheap Without Being a Cheapskate
Joining the world of cheap living doesn’t automatically make you a cheapskate! While there’s a fine line between “frugal” and “cheap,” they’re not the same. Here’s how to not be a cheapskate:
Don’t save money at the expense of others. For instance, when you’re out to dinner, leave the server a generous tip. (A cheapskate would be stingy when tipping.)
Purchase high quality items at the best prices you can afford. You know quality costs more up front, but less in the long run. (A cheapskate would buy the cheapest item, which wouldn’t last, and then spend more money to replace it.)
Prioritize your spending for things you truly value. You’re willing to forego fancy meals and expensive entertainment because you have goals to reach, vacations to look forward to, and big-ticket items you’re saving for. (A cheapskate likely just wants to save money in the moment, but for no specific purpose.)
Of course, whether you choose to be frugal or cheap is entirely up to you. But since this is a guide on frugal living, prepare to encounter a long list of simple frugal living ideas and tips to help you wise up with money and learn how to live cheap on your own terms.
Frugal Living Tips for Handling Finances
Organize your finances
- Gather and organize your bills and financial documents into one place.
- Open a separate bank account for bill payments only. After budgeting, you’ll know your total amount of monthly expenses. If possible, have that amount automatically deposited from your paychecks into that account. Otherwise, make deposits yourself.
- Stop paying late fees. Schedule monthly automatic bill payments from your new account so your bills are paid on time for you.
- Calendar any other bill due dates and pay them on time.
Save for an emergency fund
Create a savings goal for a $1,000 (minimum) emergency fund. Keep this money in an easily accessible account for unexpected expenses, like a sudden car repair or urgent health care. Having this money on hand means you’re less likely to use a credit card or go further into debt.
Stop using credit cards
If your goal is to pay off credit card balances, then stop using them. If you feel you must use a credit card for a particular purchase, first ask yourself: Do I really need this item? Can I buy it used for less? Can I borrow it from someone? After some thought, you may change your mind.
Save in advance for holidays, events, and expensive purchases
Include savings goals in your budget. If traveling, plan to purchase tickets ahead of time for better prices. If purchasing an expensive item, start saving and then research the best brands and prices. Planning and saving for these things will help keep you out of debt.
Use the cash envelope system
Unlike a debit card, the cash envelope system immediately gives you a visual of how much money you’re spending. To use this method, review your budget and determine which categories you’ll pay with cash. You’ll also need some envelopes — one per category — labeled appropriately. Fill each envelope with the budgeted amount of cash for the week or month. For example, if you plan to spend $100 per week on groceries, write “groceries” on an envelope and put $100 inside it. Track your spending on the outside of each envelope or collect receipts inside. When the envelope is empty, you’ve spent your allotted amount for that category.
Frugal Living Tips to Save at Home
Make your own cleaning products
Get back to basics and spend less on natural, healthy ingredients to create your own cleaning concoctions. Baking soda, castile soap, vinegar, lemon juice, and essential oils are just a few simple ingredients used to make all-purpose cleaner, anti-bacterial wipes, glass cleaner, dish soap, stain remover, air freshener, and any other cleaning product you’d need. There’s an abundance of frugal living blogs with additional ideas, but here are some natural cleaning recipes, easy green cleaning recipes, and a laundry booster to get you started.
Cancel or downgrade memberships and subscriptions
Gym memberships, cable packages, music streaming, online gaming, subscription boxes, newspapers, magazines, meal services, wellness apps, and audiobook memberships. Do you use them regularly? If not, get rid of them. Also, consider less expensive options, like reading news and magazines online or replacing cable with Netflix or Hulu.
Learn how to make repairs and do things for yourself
When something breaks, try fixing it before hiring a professional or buying new. Watch YouTube tutorials, search Udemy for cheap video courses (often on sale for $11.99), or take community classes to learn how to make small repairs to clothing, appliances, computers, cars, etc. Want some redecorating done around the house? Why not do it yourself? Find tips online, pick up a decorating magazine, or take a free/cheap class. And discover things you could make instead of purchasing. 60 Things to Make Instead of Buying has ideas and recipes for seasonal decorations, children’s items, cleaning products, and homemade foods.
Reduce your electric bill
- Use cold water for laundry. Bonus: Clothing will last longer and is less likely to shrink.
- Hand wash dishes or only run dishwasher when it’s full.
- Use a clothesline or drying rack instead of the dryer. (Saves on dryer sheets too!)
- Turn lights off when leaving a room.
- Switch to LED light bulbs. They last longer and are more energy efficient.
- Adjust your thermostat a few degrees — lower in the winter (about 65 degrees) and higher in the summer (about 72 degrees).
Try a discount cell phone plan
Consumer Cellular and Republic Wireless both offer flexible plans, nationwide coverage, and no contracts! Consumer Cellular plans start at $20 per month with AARP benefits and discounts. Republic Wireless plans start at $15 per month with no surprise fees. Both offer risk-free trials.
Frugal Living Tips to Save on Food
Plan and prepare your meals
- Create and follow weekly meal plans to save time, money, and frustration. New to meal planning? Read this guide or consider the $5 Meal Plan.
- Prepare simple meals ahead of time for the week. Choose one day each week (Sundays work well for me) to wash and cut vegetables, prepare a large salad, cook a few entrees, make rice and veggies.
- Schedule a baking day. Make bread, pizza crust, and muffins, and freeze some for later.
- Cook double batches. Use a crockpot and make enough for two family meals.
- Eat vegetarian a few days a week, or use less meat and bulk up meals with rice, quinoa, or lentils.
- Bring homemade lunches and snacks to work instead of getting takeout.
- Use leftovers for lunches, freeze for later, or combine them for a creative meal.
- Brew your coffee at home and enjoy homemade versions of your favorite coffee drinks. (A $4 Starbucks’ coffee, five days a week, equals $80 per month!)
Stay within your grocery budget
- Check your pantry and refrigerator/freezer for items you have on hand.
- Base your grocery list on your meal plan.
- If you prefer organic produce, first purchase items on the dirty dozen list (most contaminated) organic, then consider buying others conventionally grown, if cheaper.
- Buy produce that’s in season. It costs less and is generally more nutritional.
- Buy in bulk: meat, flour, sugar, rice, beans. (Check unit price to make sure it’s cheaper.)
- Try less expensive store brands and generic labels.
- Take advantage of sales and stock up.
- Buy more water (costs less, healthier) and less soda.
- Use coupons and the cash back app Ibotta.
Frugal Living Tips to Save While Shopping
Don’t make impulse purchases
- Avoid buying clothes (or other items) just because they’re on sale.
- Wait 72 hours (or three days) before making significant purchases. Use this time to think about whether you actually need the item. You may end up not wanting the item after all.
Buy high quality used or second hand items instead of new
Furniture, appliances, designer jeans, books, bikes, and computers are good to buy used. You might even find interesting items for free! Browse through in-person or online thrift stores, like thredUP, consignment shops, yard sales, and estate sales. Craigslist, eBay, and Facebook Marketplace offer gently used second-hand goods. Freecycle is a nonprofit network where you can get (and give) items for free. See why pre-owned is better: 10 items you should buy used.
Use apps to get cash back on purchases
Cash back apps partner with numerous brands and retailers that provide food, clothing, shoes, electronics, wine, beer, gas, travel deals, and more.
- Before making a purchase, check Rakuten (formerly Ebates) and Ibotta to see if you can buy the item from a participating store.
- To receive cash back on gas, restaurants, and grocery store purchases, look at GetUpside.
Give thoughtful and thrifty gifts
- Search “DIY gifts” on Pinterest and get crafty. Friends and family will love that you took time to make them a unique gift.
- Purchase discounted gift cards from Cardpool and get up to 35% off cards for popular retailers. Use these cards to purchase gifts or to give as gifts.
- Plan ahead for holidays and special occasions. Make gift lists in advance and purchase gifts throughout the year as you find sales and discounts.
Avoid paying full price when possible
- Ask for discounts. (Yes, this is allowed!)
- Use coupons and promo codes when shopping online. RetailMeNot and Groupon have worked well for me. Coupon Sherpa is also worth looking at.
- Check Amazon for cheaper prices. (If you shop regularly on Amazon.com, becoming a Prime member is totally worth the cost! Fast free shipping and lots of other benefits.)
- Shop for quality clothing, shoes, handbags, and home goods at discount stores, like Marshalls, Ross Dress for Less, and TJ Maxx.
Frugal Living Tips to Save on Entertainment
Invite guests to your home
Invite a friend over for coffee, host a movie night, watch a sports game together, or throw a dinner party. Plan a kid-friendly game night or one for adults only. Pick up some games from the thrift store and have fun!
Visit your local library
This amazing resource should not be overlooked! Most libraries offer free entertainment: books, magazines, movies, CDs, DVDs, video games, puzzles, children’s toys and games, book club kits, museum passes, story time, and special free events. Many have computers and free Internet access and also offer computer lessons, online courses, homework and research assistance, children’s activities, and more.
Find free and low-cost activities
- Google the name of your city/county and the words “free activities” or “free concerts.”
- Keep a list of free or cheap fun ideas for quick reference.
- Go to theaters during off-peak times.
- Visit a museum or national park. Find free museums and free entrance dates for national parks.
- Look at art galleries and museums for low-cost or free admission on certain days.
- Check out amateur sports leagues in your area or watch a high school football game.
- Volunteer at fun and interesting events, like being an usher or ticket taker at a concert.
- Spend quality time with friends and family. Talk, tell stories, or play games.
- Check Groupon for a variety of popular activities at discounted prices.
Step outside and enjoy nature
- Take a leisurely walk.
- Explore your town.
- Go for a bike ride.
- Go fishing or hiking.
- Enjoy a picnic in the park.
- Spend a day at the beach.
- Bring your kids to the playground.
- Play yard games with friends and family.
- Set up camp in the backyard, or find cheap camping opportunities.
Learn a new skill or pick up a cheap hobby
Candle making, calligraphy/hand lettering, drawing, watercolor painting, coloring, embroidering, paper crafting, sewing, knitting, writing, baking, and gardening are just a few frugal ideas. You could even sell your creations! Check out Bluprint or Skillshare for more options and enjoy a 14-day free trial.
Frugal Living Tips to Save While Traveling
Take advantage of ways to save when planning vacations
- Use credit card travel rewards for free flights, car rentals, and hotel stays.
- Pack light to avoid extra baggage fees at the airport.
- Shop for flights on Tuesdays (they’re usually cheaper).
- Check Rakuten for cash back opportunities on vacation packages, airfare, car rentals, and hotels.
Change your daily travel routine
- Replace shorter car trips with walking or bike riding.
- Run all your errands together on the same day.
- Travel toll-free roads when possible.
- Get cash back on gas purchases, and save more money on gas with these ideas.
- Keep up with scheduled maintenance on your vehicle to avoid major expenses later.
- Ask your employer if you can work from home (if possible), even for just a couple days a week.
- Look for ways to lower car insurance.
- Still have a car payment? For one less monthly expense, consider selling that car and using the cash to purchase a cheaper car.
- Can your family get by with one car instead of two? If so, consider selling one and you’ll have fewer expenses.
Frugal Living Tips to Save on Health and Self-care
Take action to improve your health
You’ve heard it all before: exercise, eat healthier, drink more water, get enough sleep… And the list goes on. These things are vital to your health. So stop procrastinating and start practicing these habits now! Preventative self-care can save your life, and it’s much less expensive than treating potential health problems later.
Practice daily self-care
- Shorten your to-do list to top priorities only.
- Meditate or relax for 15 minutes.
- Read something that inspires or motivates you.
- Practice breathing techniques.
- Take a one-hour break from your computer or cell phone.
- Perform at least one act of self-care each day. Here are 117 frugal self-care ideas.
Buy less OTC medicines and try healthy DIY cold and flu remedies
These simple gourmet-like remedies won’t completely cure what ails you, but they’ll soothe and comfort you while tantalizing your taste buds. And with ingredients like lemon, garlic, ginger, honey, and apple cider vinegar, they’re bound to be good for you.
Invest in a water filtration system and refillable bottles
Why not clean up your tap water so you feel good about drinking it? While investing in a water filtration system may seem expensive up front, it’ll save you money in the long run. (No more stocking up on bottled water.) Look for a system that uses high quality activated carbon to reduce chloramine levels. Another good option is reverse osmosis technology, which purifies water at a high level close to distilled. Plan on spending between $200 and $500. Purchase a few refillable water bottles and you’re set!
Make your own beauty and personal care products
Spend less and use healthy ingredients in your homemade products. Here’s a great resource with over 100 recipes for makeup, face and body skincare, toothpaste and mouthwash, deodorant, hair care, and even sensual care products!
Frugal Living Tips from the Great Depression
Repurpose and reuse things instead of discarding them
Old jeans can be turned into shorts. Worn clothing, linens, and towels can be cut for quilting, washcloths, or cleaning rags. Reuse grocery bags for trash, containers and boxes for storage, and glass jars to store food, drinks, and small household items.
Replace disposable items with reusables
Paper plates, paper towels, Swiffer® products, and cleaning wipes — just to name a few — are expensive. Treat yourself to real plates and use washable towels for dusting furniture and wiping counters. Invest in some microfiber cleaning cloths and make your own cleaning wipes.
Grow a small garden
Veggies, like tomatoes, zucchini, bell peppers, and cucumbers, are easy to grow. But if you don’t have the space or desire for a full-blown garden, try using containers on your porch or in your yard. Or just grow herbs in your windowsill.
Differentiate between a want and a need
On a basic level, you already know the difference between a want and a need. But it’s easy to feel confused or conflicted with so many options available, and we often buy more things out of want than need. Learn to appreciate what you already have and focus on purchasing essential items.
Maintain belongings so they last longer
Take pride in your possessions. Houses, cars, appliances, furniture, bikes, and clothing need to be cared for to perform properly and look their best. Regular maintenance can save you money, time, and stress in the future.
Increase your income
If your budget is tight, extra money will help alleviate stress and allow you to save more. If you’re unable to work extra shifts at your current job, find a side job or search the Internet for online opportunities. Become an Uber or Lyft driver, deliver food, or start a freelancing gig. Check out Steady app for local, remote, part-time, one-time, or anytime jobs.
Barter for skills, services, or things
Trade your time or skills in exchange for something you want or need. Rather than paying an acquaintance to perform a particular service, offer to do something of equal value in return. For instance, if you want a manicure from a friend, offer to babysit her kids for a night.
Frugal Living Tips for Seniors
Take advantage of senior discounts
Each year, The Senior List® puts out the Biggest List of Senior Discounts, which includes:
- Restaurants that offer 10% off meals or a free drink.
- Grocery and retail stores that offer discounts on specific days.
- Prescription savings programs.
- Travel discounts on airline tickets, car rentals, and hotels.
- Cell phone plans at a discount.
- Senior Lifetime Pass to numerous national parks.
- Travel discounts with Greyhound and Amtrak.
Reconsider disability insurance
If you’re no longer employed and are comfortable with your budget, you may not need to keep paying for disability insurance. Keep your coverage only if it makes sense.
Travel during the off-season
Since you have more control over your time now, cut travel costs by booking vacations during off-peak travel times. You’ll also benefit by not having to deal with crowds.
Take a safe driving course
Ask your car insurance company about approved senior driving courses and what discounts are available for taking one.
Freeze your property taxes
Some states allow seniors to freeze their property tax rate so they no longer incur annual increases. Check with your local tax office to see if this is an option for you.
Consider relocating to a lower cost area
If you live in an expensive city and are up for a change, moving to a cheaper area can increase your savings and free up funds for more important things.
Get involved with your community
Look for interesting ways to volunteer and contribute to your local area. It’s a great way to spend time, help others, meet people, and have fun. And it’s free!
Tips for Frugal Living on One Income
Get organized and create a plan before leaving your job
- Make sure your household incomes and expenses are combined.
- Review your financial situation and create a one-income budget. Start with basic necessities, and work your way up from there.
- Increase your savings in case of emergencies.
- Think about ways to decrease spending. What can you do without or cut back on?
- Practice living on one income for at least a full month or two before quitting your job. Learn from the experience and make necessary adjustments.
Be prepared to do things differently
Your lifestyle is about to change, so you’ll need to change too. For instance, you can’t keep spending as if you have two incomes. Think carefully about each purchase. Change your buying habits. Cut back on nonessentials. Adopt a frugal lifestyle. And learn to embrace these positive life changes.
Spend time, not money
You now have more time than money. Let go of costly convenient items and activities, and do more yourself. Prep your own vegetables instead of buying pre-cut, prepare meals at home rather than going out, and learn to do simple household repairs instead of hiring a professional.
Rise up to the challenge
Be in this to win! Get your mindset right. Be enthusiastic and willing to do whatever it takes. Challenge yourself each week to learn or do something new. Make it fun and use your creative skills. Even small changes make a big difference.
Always remember your why
What is your reason for living on one income? Whether you want to stay home with your kids or start a home-based business, it’s important to continually focus on your why. You won’t feel as deprived and you’ll be more likely to stick with your plan and be successful.
Stop the Nightmare and Start Your Dream
Living with financial instability can feel like living in a nightmare.
The stress of wondering if you’ll have enough…
The fear in wondering what’ll happen if you don’t…
But the thing about nightmares is that you usually wake up from them.
And this is your chance.
Frugal living can open your eyes.
But you need to make the decision. (And don’t you dare claim ignorance!)
Are you willing to follow these steps and change your habits?
Are you ready to start feeling the peace of mind you’ve been longing for?
Imagine how great it would feel to finally get a good night’s rest.
Imagine how confident you’d be knowing your finances are in order.
You now have the necessary tools. And I know you can build a better life — the life you want.
So wake up! Get out of bed, get to work, and get excited!
Your dream is waiting.
