Frugality gets a bad rap. The word is often used interchangeably with “cheap”, but they are two very different things. Frugality is about value-based spending, creating systems, prioritizing, keeping an abundance mindset, and much more. There are frugal ways to live without transitioning to cheap.
Nobody likes to be around a cheap person, and I recommend not becoming one. Unlike cheap, frugality is actually a very good thing.
Frugal Ways to Live
this post, we’ll address 22 frugal ways to live. None of which involve depriving yourself of the good life or missing out on anything. Pick a few of your favorites to start with or create some of your own.
Related: You Can Do It All: Make More Money, Be Frugal, and More
Number One: Walk
Especially in a big city, walking is a great way to get around. Walk to restaurants, shops, or a friend’s house. Walking gives you exercise and saves a little bit of money on fuel and parking costs.
I’m not suggesting walking five miles to go grocery shopping–that’s burdensome and not a great use of time. But if you’re going out to dinner less than a mile from your house, walking is a great option (assuming it’s safe to do so).
Number Two: Bike
Like walking, biking is another great way to live a frugal life and get some exercise. Bikes are a really good option if you need to go further than you want to walk, and you enjoy being out and about.
Biking saves on not only fuel costs, but also on parking costs if parking is at a premium where you live. Ride your own bike or rent one using one of the many bike and go apps.
Number Three: Public Transportation
Especially if the area you live in has good infrastructure set up, public transportation is one of the best frugal ways to live. Public transportation helps:
- Save on fuel costs
- Avoid high parking costs
- Reduce the stress of driving in big cities
- Save large amounts of time in traffic
Number Four: Buy in Bulk
For regularly used items, buy in bulk. It’s easy to do and requires very little extra time. Buying in bulk can be more challenging if you don’t have a lot of storage space at home, so you’ll need to adjust based on the amount of available storage.
If you have sufficient storage space, buying in bulk is very easy, especially at warehouse stores. In many cases, buying in bulk can save you more than double versus buying at a grocery or convenience store.
Related: How I Saved $50 at the Store in Less Than 45 Seconds
Number Five: Make a Shopping List
I’m sure we’ve all been guilty of this: We’re at the store and see items we “need to have.” I know I’ve fallen into this trap more than once.
An easy way to buy only what you need at the store is by creating a shopping list. Stick to what’s on the list and you’ll avoid the impulse buys that are waiting for you all over the store. Lists are a simple and easy way to live a more frugal life.
Number Six: Cook at Home
Number six on the list of frugal ways to live is to cook at home, which can save quite a bit of money. Cooking at home all seven days of the week is optimal, but you nobody has to be perfect.
Even cooking five or six nights a week and going out the other nights is a very effective way to save money. It also makes going out more of a treat that you’ll enjoy rather than a daily expectation.
Number Seven: Reduce Electric and Water Bills
An easy way to live more frugally is by reducing electric and water bills. It doesn’t take much effort to do this. Turn off the lights when you leave a room, turn off unnecessary appliances, turn off the water when you’re brushing your teeth or washing your hands, turn off the sprinkler when it rains.
These are all very easy things to do without much effort. For more tips see these posts from other personal finance sites.
Number Eight: Be a Value-Based Spender
A naturally frugal way to live is by becoming a value-based spender. Value-based spenders naturally incorporate principles of frugality in their daily choices and actions.
Value-based spending is about spending–as the name suggests, only on things you value (and necessities). Everything else is eliminated. There’s no spending to impress others, make you feel better after having a bad day, or because you’re bored at night and feel like making a couple online purchases. Either it’s a necessity, you highly value it, or you don’t buy it.
Number Nine: Eliminate Consumer Debt
Eliminating consumer debt is not only one of the most important things anyone can do to vault their personal finances to new heights, but it’s also a frugal way to live. One of the core principles of frugality is to eliminate unnecessary spending.
Hundreds of dollars in interest from credit card debt or store credit cards would be categorized as unnecessary spending. That television, computer, and couch bought on credit and never paid back is costing far more than the original purchase price.
For example, a $1,000 computer purchased on credit and not paid back is accumulating interest every month that it’s not paid off. That means that computer is no longer $1,000. It’s $1,000 plus the monthly interest payments, which are likely very high interest rates.
Related: The Psychology of Paying Off Bad Debt
Number 10: Cancel Subscriptions
This post has already addressed value-based spending, which incorporates principles of frugality. One of those core principles is to only use what you value and need. Old subscriptions that you no longer use don’t fit into the value category.
Go through old subscriptions and cancel the ones you don’t value anymore. This can be once or twice a year at most–and it really shouldn’t take much time. The good news is that once you’ve canceled the unused subscriptions, that work is done and you don’t have to worry about it again while capturing the savings.
Number 11: Negotiate Bills
It’s expensive for companies to acquire new business so they naturally want to keep your business. Periodically review promotional offers or perks to existing customers that companies you do business with are offering.
Contact them and try to negotiate a new rate. These companies will often work with you to retain your business. And if they won’t, decide if you want to stay or shop around for a better deal. This works very well with TV streaming services, internet providers, etc.
Number 12: House Sit
Housing is expensive. Many experts recommend spending no more than 25 to 30 percent of your monthly income on housing. However, many people routinely spend 50 percent or higher on housing, especially those living in expensive areas.
Fortunately there’s a hack for this–house sitting. Especially for young and single people, there’s opportunity to house sit for others weeks or months at a time and avoid paying rent or a mortgage. Apps like HouseSitter.com are a way to find gigs online. Definitely not a strategy for everyone, but for those willing to do it, this eliminates or reduces a major expense.
Number 13: Move Out of State
Number 13 on the list of frugal ways to live is moving out of state, or even the country. Some states are more expensive than others–way more expensive. Moving from an expensive coastal state to a less expensive state can greatly reduce cost of living.
This article in The Ascent lists the average house price by state. The numbers significantly vary state by state. For example, these are the average house price in June 2021 in the following states:
- Alabama: $170,184
- California: $683,996
- Hawaii: $730,511
- Maryland: $366,581
- Oklahoma: $150,754
These are just five examples, but the prices vary greatly. Someone moving from a state like California or Hawaii to a less expensive state like Alabama or Oklahoma would significantly reduce their housing costs. Even moving to a more average cost state like Maryland would greatly reduce housing costs.
With remote work becoming more and more available, someone wanting to live a more frugal life can easily accomplish this by moving to a less expensive state. Assuming companies pay remote workers the same independent of what state the worker lives in (which not all companies do).
Related: Should I Move? 5 Things to Consider First
Number 14: Move to Another Country
If moving out of state doesn’t offer enough savings for you, there’s another more extreme way to live a more frugal life. Some people have elected to move out of the country entirely, taking advantage of far less expensive living situations. This 2021 post in International Living lists the top 10 best countries to live in based on the Annual Global Retirement Index: a combination of factors including real experiences of travelers.
While this list is not the absolute most inexpensive places to live, the costs are significantly less than living in the United States. Not everyone wants to leave the US for less expensive living, but if you’re willing, there are many options available.
Number 15: Move Away from the City
A less extreme of the frugal ways to live than the last three headers–move further away from the city. In almost all cities across the United States, it’s much cheaper to live further away from the city center. For example, it’s less expensive to live in Queens than Manhattan or Oakland than San Francisco.
If you’re willing to live outside the city, you can live a much more frugal life by reducing rent or mortgage payments alone. As long as you’re okay moving away from the city and taking the train or driving in (or a number of other alternatives), the savings are significant.
Number 16: House-Hack
If moving isn’t the option for you, number 16 on our list of frugal ways to live might be for you. House-hacking provides tremendous savings. To give a very basic definition, house-hacking is simply finding ways to reduce housing costs. Just a few of the ways:
- Get a roommate(s)
- Rent out rooms on Airbnb
- Rent out entire house or apartment on Airbnb when you are gone
- Buy a duplex or triplex–live in one and rent out the others
These are just some of the ways to house-hack, the only limits are your creativity. Many people have not only found a way to live more frugally, but also lived for free or turned a profit just with their housing.
Book Recommendation: The House Hacking Strategy: How to Use Your Home to Achieve Financial Freedom
Number 17: Downsize
Downsize is number 17 on the list of frugal ways to live. The four-bedroom house you loved when the kids were young may no longer be necessary now that the kids are out of the house. Or the house with the big yard is becoming a burden to upkeep.
There are a number of reasons why people would want to downsize and price is usually at the top of the list. Some other common reasons:
- Less upkeep
- Ability to live in a more central location
- Less heating and energy costs
- Less overall to worry about
Number 18: Childcare
Childcare is a big expense. Childcare costs vary widely with areas like Washington DC at or near the top and Mississippi around the bottom. No matter where you live though, there are ways to reduce childcare costs, many of which are written in my book Cash Uncomplicated. Among the ways:
- Create a rotation of family members to provide childcare, especially in the first year
- Team with trusted neighbors to watch the children different days of the week
- Free or reduced cost after school programs
- Extend parental leave during the child’s first year
These are just some of the ways that work. Not every idea is going to work for you, the key is to identify what will work and pursue that.
Number 19: Refinance
Refinancing to reduce interest rates and monthly costs is a great way to live frugal without having to exert consistent effort. There will need to be some time spent during the initial process of refinancing, but once the work is done and the refinance is complete, you’re done.
The reward is lower interest rates and a smaller monthly payment. Here are examples of a few payments at varying interest rates for a $500,000 home loan. Principal and interest only.
- 6 percent: $2,997.75
- 5 percent: $2,684.11
- 4 percent: $2,387.08
- 3 percent: $2,108.02
The differences in just one percentage point are noticeable, around $300 per month. And the differences between two percentage points or more are sizable, around $600 per month.
Number 20: Work Remotely
Since the pandemic, the opportunities for remote work have greatly expanded. Minus the likely increased costs of heating, cooling and electricity–remote work is a really good way to live frugal. Commute costs, both in time and money are greatly reduced or eliminated. Lunches out are likely also a thing of the past as it’s very convenient to make lunch at your own home.
Many companies will also pay to help you set up a remote work station at home. You may be able to get help with internet, electricity, heating and cooling, and more. Also make sure to speak with your CPA about tax savings for setting up a home office, as written about in this post in US News.
Number 21: Short-Term Rentals
Especially in tourism destinations, renting out a room or your entire house on a short-term rental platform like Airbnb is a way to live frugal without having to work extra. If you’re willing to allow someone to stay in your house, short-term rentals are a great option.
Rent out a room at a time when you are home, or rent out your whole house when you’re out of town or on vacation. There are any options to make money with short-term rentals, find out the best ways that work for you if this is a space you’re interested in.
Number 22: Rent Storage Space
If renting your house isn’t for you, there’s another option to make money from rent. Apps like Neighbor give anyone with a home the opportunity to rent out space in their backyard, garage, driveway, or anywhere on their property with space.
There’s opportunity to provide RV storage, car parking, store personal property, and much more. Check out their website or this post I wrote on making more money with gig work.
Conclusion
There are many ways to live frugal. The 22 ways listed in this post are just the tip of the iceberg. There are literally hundreds of ways to do it without much time or effort.
If finding ways to live more frugal are intriguing to you, give some of these ideas a try and then come up with some of your own that work for your lifestyle and family situation. Add one or two at a time and allow the results to compound.
Finding a way to live frugal by saving $50 a month isn’t going to make a huge dent in your money situation, but finding ways to shave off hundreds or thousands of dollars per month will make a big difference, especially over multiple years.
What are some of your strategies for living a more frugal life?
