People Who Live Frugal Lives Save More Money With These 8 Tips

What does it mean to live frugally? It’s not about deprivation or lack of money. Instead, frugality is a mindset focused on spending intentionally and maximizing the value of your money. When you live a frugal lifestyle, you make room in your budget for what matters most, whether that’s saving for the future, pursuing your passions, or simply worrying less about finances .

1. Create (and use) a budget

First things first: you need a budget. Think of it as a road map for your money. A study from the Journal of Consumer Affairs found that families who stick to a budget tend to save more and experience less financial anxiety.

Creating a budget doesn’t have to be complicated. Start by tracking your spending for about a month. Next, group expenses into categories and set realistic limits for each. Finally, find a budgeting method that works for you: an app, a spreadsheet, or good old pen and paper. The key is to monitor your spending and adjust it consistently if necessary.

2. Plan your meals and embrace home cooking

Food is a major expense for most households, but cooking at home is a simple way to reduce this cost. A USDA study found that restaurant meals cost about five times more than those prepared at home.

To maximize your food budget, start planning your meals. Take inventory of what you already have, scan grocery store flyers for sales, and create a list before you shop. Consider cooking in batches and freezing leftovers to make future meals easier. And don’t forget packed lunches: they can save you a lot of money compared to midday restaurant shopping.

3. Pause before buying

Impulsive purchases can quickly derail your budget. The solution? Practice mindful consumption. A study in the Journal of Consumer Psychology found that implementing a 24-hour cooling-off period led people to make fewer impulsive purchases.

Before buying anything non-essential, give yourself a day to think about it. Ask if you really need the item or if you are shopping out of boredom, stress or other emotions. Unsubscribe from enticing marketing emails and unfollow brands on social media. By becoming a more intentional consumer, you will naturally spend less.

4. Rethink your housing costs

Housing takes up the largest share of most people’s income. Experts at Harvard’s Joint Center for Housing Studies suggest capping this cost at 30% of your income.

Look for ways to stretch your housing budget. Could you downsize to a smaller space? Negotiate a rent reduction with your landlord. Refinance your mortgage at a lower rate? Even small changes, like installing energy-efficient appliances or adjusting your thermostat, can add up to significant savings over time.

5. Take advantage of free resources

From books to classes to entertainment, there are plenty of freebies available – if you know where to look. Start with your local library. A study in the Journal of Urban Economics noted that library use tends to increase during economic recessions as people seek additional resources.

Beyond free book and media rentals, many libraries host free workshops, lectures, and children’s programs. Also find out what classes and community events are offered in your area. You might discover free fitness sessions, art exhibitions or even museum days that will keep you entertained without spending a cent.

6. Opt for second hand and DIY

New isn’t always better. The savings can be substantial when you buy second-hand or reuse items you already own. A study published in the Journal of Consumer Research found that those who buy second-hand goods feel more positive about their purchases.

Visit thrift stores, consignment shops and online resale sites for clothing, furniture and household items. Learn basic repair and repair skills so you can repair things rather than replace them. Organize a swap with friends to exchange items you no longer need. With a little creativity, you can furnish your life inexpensively.

7. Rethink your travels

After housing, transportation is often the second largest household expense. The American Public Transportation Association estimates that using public transportation instead of owning a car can save individuals more than $10,000 per year.

Of course, not everyone can do without a car. But you can still reduce your transportation costs with a few adjustments. Use your bike or walk for short trips. Carpool or use ride-sharing apps. If you own a vehicle, perform maintenance to improve fuel efficiency and avoid costly repairs.

8. Put your savings on autopilot

It’s much easier to save money when you don’t think about it. This is why automating your savings is so powerful. The Journal of Marketing Research found that people save more when they use automatic savings plans.

Set up your accounts so that a portion of each paycheck goes directly into savings. Look for apps that consolidate your purchases and redirect the difference toward investments. If your employer offers a 401(k) match, make sure you contribute enough to get the full amount. You prioritize your future without even trying by putting your savings on autopilot.

Case Study: How Clara Saved Big by Living Small

Clara has always been conscious about her spending, but when she decided to pursue her dream of starting her own business, she knew she had to take frugality to the next level. She started by moving to a studio closer to her coworking space. The move reduced her rent and allowed her to walk to work, eliminating her travel costs.

Clara then focused on her daily expenses. She began meal prepping on weekends, making large batches of her favorite recipes to freeze for easy lunches and dinners. She also began frequenting her local library for free entertainment, borrowing books and films, and even occasionally attending workshops.

Clara scoured estate sales and online marketplaces for deals on second-hand furniture and decor to furnish her new apartment. She even taught herself basic sewing skills to hem curtains and salvage throw pillows, giving her space a personalized look for less.

Finally, Clara automated her savings, setting up weekly transfers from her current account to her high-yield savings account. She also contributed enough to her retirement plan to take full advantage of her employer’s match. By making small, consistent changes, Clara was able to save a significant amount of money while still enjoying life and pursuing her entrepreneurial dreams.

Key takeaways

• Frugality is a mindset focused on spending intentionally and maximizing the value of your money.
• Create and stick to a budget to save more and reduce financial stress.
• Prepare your meals at home and plan to reduce food costs.
• Take a break before shopping to avoid impulse purchases.
• Look for ways to optimize housing costs, which are often the largest expense.
• Take advantage of free resources like libraries, community events, and public spaces.
• Buy second-hand items and reuse them to save money on things you need.
• Rethink your travel and transportation choices to reduce costs.
• Automate your savings to prioritize your financial future without additional effort.
• Start small, stay consistent, and align your spending with your values ​​for long-term thrifty success.

Conclusion

Ultimately, living frugally is about aligning your spending with your values. By implementing these research-backed tips, you can spend less on what doesn’t matter and more on what matters. Remember, frugality is not a short-term diet but a long-term lifestyle. Start small, stay consistent, and watch your savings grow.