Best Frugal Living Tips to Save a Lot of Money - Life's Little Pleasures and Struggles

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Frugal living means being intentional with your spending and focusing on a few financial priorities. A consumer who wants to live frugally should think about their important goals and how changing their finances can help them reach that goal. In this post, I’m going to share some practical frugal living tips with you that can save you a lot of money and improve your financial health.

People embrace frugality for various reasons. For some, it could be that they are going through financial hardship, and for others, it may be that they want to cut down their expenses to save more money.

A good way to start living frugally is to introduce and add new frugal living tips and strategies slowly. Try them out to see how they feel. You may not like some of them right away, but if you give them some time, they may feel easier and make more sense. You may need to try many tips and strategies before you truly find your frugal stride.

Benefits of a frugal lifestyle

There are so many great benefits of living frugally including less stress, more financial freedom to spend money on the things you love and value, and an increased appreciation for simple, intentional living.

Frugal living allows you to be mindful of your resources, and improves your mental, physical, and financial health by simplifying your life. There are so many benefits that will follow once you make the choice to try these frugal living tips mentioned below.

Best frugal living tips to start saving money

Here are some practical frugal living tips and strategies to help you get started on this new exciting path!

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Create a sustainable budget

Creating and sticking to a realistic budget is essential and fundamental to your financial success. If you think you can simplify your financial life and live frugally without creating a well-defined, sustainable budget, then you’re going in the wrong direction.

A budget is all about being intentional. It helps you create a plan so you can see where your hard-earned money is going, and find out how much you can actually save each month to improve your financial life.

Budgeting is the most effective way to get your financial life in order, track your spending, plan your future, and maintain a simple financial lifestyle. Even a basic budget can be the difference between achieving your financial goals and wondering where all your money went.

Within your budget, you can prioritize things that matter to you and ruthlessly cut out things that don’t. Do understand that there’s nothing wrong with occasionally splurging on the things you love and enjoy. Just make sure you’re saving for these purchases in advance. If you want to take a trip with your family or friends, buy a nice bag, or dine out in a fancy restaurant, start putting aside the money for it.

Pay off your debts

Paying off your debt fast is one effective way to live more frugally as you will save a good amount of money on interest payments in the long run.

We all know that the best frugal living tips include spending less – that includes interest payments too! Most of us end up paying back twice the amount of our home, car, or student loans when we count the interest payments.

Even if you don’t have the extra money to reduce the debt balances faster, you can significantly cut your interest expenses. Consider options such as refinancing, doing a balance transfer at 0% interest, consolidating your debts, or changing payment plans on student loans to make debt more manageable.

If you really want to live frugally and save a lot of money, I highly encourage you to not only get out of debt, but stay out of debt. It might be a difficult task, but it’s so worth it in the end!

Debt is a drain on your resources. Make it a priority to pay off your debts as fast as you can. Once you get rid of your debt, you will never want to live with debt again, because it’s so liberating! Finding effective, frugal ways to live within your means will allow you to enjoy the freedom from these financial burdens.

Related post: 15 Possible Reasons Why You Are In Debt

Build an emergency fund

Do you have enough savings put aside to cover the cost of your car breaking down? Could you cover the repairs of your roof if they happened tomorrow? If the answer is no, you need an emergency fund. An emergency fund can mean the difference between dealing with a little inconvenience and dealing with a lot of stress by getting further into debt.

If you’re prepared for financial emergencies, everything in life feels a little simpler. So, once you pay off your debt, build an emergency fund. An emergency fund, also known as a 911 fund, is a savings account meant to cover unexpected expenses and financial emergencies.

Having an emergency fund will simplify your life to a large extent. When you know that you have a safety cushion to fall back on in case of an emergency, a lot of your stress will go away, you will sleep better at night, and enjoy great peace of mind.

Ideally, you should have enough to cover at least 3 to 6 months worth of living expenses, but any amount is better than not having anything at all. Having even $1,000 saved can get you out of many financial scrapes.

Start putting something away now, and build your fund over time. You may also consider selling any unused or unnecessary items that you own to build up that cash as quickly as you can.

Avoid debt whenever possible

One of the best tips for frugal living is to avoid debt. You can do this by having an emergency fund as we have just talked about, and you can also do this by being intentional. Do you need to own an item to use it? You might be able to borrow it from a friend, or barter services.

There are many ways to utilize items without ownership. Just taking the time to think through your options will help you avoid racking up credit card debt for things you might not use that often or at all.

Start meal planning

Meal planning is one of the best frugal living tips because the grocery bill is usually one place most people can make savings. Groceries can be the biggest variable expense in a person’s budget. It’s not uncommon for families to spend hundreds of dollars on groceries, not realizing there is a better way.

Meal planning can save money on food while eliminating waste. Before you sit down and start making your meal plan, take an inventory of what you already have on hand. Peruse all of your food storage areas, including your pantry, freezer, and refrigerator, and make a note of any specific foods you need to use up soon.

Doing this helps you move through the food you already have, reduces waste, and prevents you from unnecessarily buying the same things over and over again. Try to plan meals around what you already own instead of buying all the ingredients. For instance, if you have a box of pasta, plan a meal around that. If you ever need recipes, I have tons of them saved to my Pinterest board HERE.

Preparing meals based on what you already have saves you money and forces you to get creative. Meal planning not only saves you money, but it can also save you time, too. This stops me buying things I don’t need and don’t have room to store, and forces me to use up first what we have got in our pantry and refrigerator.

Take a look in your pantry and refrigerator

Using up what you have already got on hand is the best way to prepare frugal meals. Many people waste a lot of food they buy, store, or prepare. According to a study by the National Resource Defense Council, the average American family wastes on about $2,200 of food per year. That’s literally throwing money away.

If you’re not being careful, possibility is that you are also wasting your money this way. Most people have a good amount of food lurking in their pantry. Take stock of what you have on hand. Consider making a meal out of what’s available in the pantry or fridge.

When you go to the grocery store, for example, make a meal plan first and shop with a list to reduce the chances you will overspend and buy foods that have to be tossed away.

Recently, I have been eliminating one weekly trip to the grocery store each month. The goal of that week is to finish all of the leftover ingredients lying around in my pantry and refrigerator. You might be surprised by your creativity in the kitchen when you decide to make the most of what you have.

Cook in bulk

If you want to live frugally and save money, never cook just one meal. Instead of just cooking one meal at a time, prepare and cook food that will last for 3/4 days, or at least 2 full family meals. That way, you will not only save money, but also save time, too. Try to make dishes that you know your family will love and enjoy.

When you’re cooking in bulk, you can use all the help you can get. It’s worth investing in appliances that will allow you get the work done without having to remain hands-on the whole time. Bulk cooking sessions often involve chopping many vegetables. You can save countless minutes by using a food processor to slice, shred, and dice your ingredients instead of doing it by hand.

Pack your lunch

According to the Bureau of Labor Statistics, the average household spends approximately $3,459 on food outside of the home each year. That’s $288 per month! Buying lunch a few times a week may seem harmless in the moment, but you can save quite a bit of money just by packing your lunch! It can save you an average of $4.70 per day to prepare your own lunches. Over the course of a year, you could save $1,222 if instead of eating out for lunch each day, you began packing your lunch.

There are many other benefits to preparing lunches at home. According to David Levitsky, a professor of nutrition and psychology at Cornell University in Ithaca, N.Y., preparing your own meals at home cuts your calorie consumption by 20-35%. Additional benefits include knowing exactly what is in your food, having more time to actually enjoy lunch, since you’re not waiting in line for it; and less likelihood to cave into temptation.

Buy gently used items

Shopping used is one of the most timeless frugal living tips, whether it’s about buying a used car, used furniture, or used clothes. From designer clothes to luxury cars, you can buy high-quality goods at a reduced rate simply by opting for secondhand items. Almost everything is cheaper when it’s not new, and you can often find used options that work just as well.

When you have the option to buy something used, do it. You can save a significant amount of money with gently used, good quality items. Check around your local thrift stores and online marketplaces to find the item you need at a much better price.

Buy in bulk

Buying frequently used items in bulk, such as toilet paper, paper towels, soap, and some food items is one of the frugal tips that can save you money on your grocery bill. It can be particularly cost-effective to buy beans, lentils, tomatoes, rice, pasta, cooking oil, and meat in bulk. The price per unit is usually lower when you buy in larger portions, and you can make fewer trips to the store, too. Remember, if you purchase perishable food items in bulk, then cook in bulk and freeze to prevent waste.

Get cashback on everyday purchases

Whenever cashback is available, you should always claim it. Many bank accounts and credit cards offer cashback when making purchases, and many purchases offer cashback if certain criteria are met.

If you can claim cashback, then you should always make sure to do so. Amounts may sometimes be small but over a year can add up to a large amount. We have just used around $200 cashback offered by one of our credit cards that we use to do everyday purchases.

Return things you don’t need

Often we buy more than we need. Take a look at your recent purchases. Is there anything that you absolutely don’t need but bought without prior planning? Make a trip back to the store or ship that item back and get your money back. You can even return groceries. Groceries will take back spoilt food and non-perishable items.

I have done this several times and saved a good amount of money from being wasted.

Downsize your home

One of the best frugal living tips is downsizing your home or buying less house. How much of your house do you actually use? When you buy or rent a house that is bigger than you need, it could be costing you money that you really don’t need to spend.

By living in a too-large-for-you kind of home, you end up wasting tons of money on larger monthly payments, higher maintenance costs, higher utility bills, and lots of unnecessary ‘stuff’ to fill up the extra empty space that you could, otherwise, save and spend on something that add more value to your life .

Declutter your stuff

Declutter the stuff in your home that you don’t need or use, and let go of them for the sake of your financial future. That vintage chair your grandma gave you? Sell it. That paintings you found at an antique shop? Sell it. You would be surprised at how much clutter you have in your home (that you don’t even use or care about). And the cash you can make on those things can be the difference between living paycheck to paycheck or not.

By getting rid of items you no longer use or have a need for, you will have more space for the things that will add value to you and your family. You might also find things you forgot you had, and reduce buying duplicate items because in an organized home you can easily *find* what you’re looking for.

Refinance your loans

An easy and practical way to save money on your debt is to refinance your loans for a lower interest rate. It can make a big difference in your finances!

Make a list of your debts and see if you can refinance them. If you refinance the loan and the monthly payment is now lower, keep making the same payments as you were before. You’ll pay off the debt faster and pay less interest total. If you start making lower payments, you might end up actually paying more in interest than if you hadn’t refinanced your loan.

Shop around for the best insurance

Insurance is expensive, no matter what kind of insurance you are talking about. Car insurance, health insurance, home insurance, life insurance, etc. most likely eat up a good chunk of your money from your budget. Don’t get comfortable paying more money than you are supposed to – simply because you are used to it.

It’s critical to choose the best plans for your life and your budget. Once you have a better understanding of what insurance you need, shop around and find the best rates. Make sure you are getting the best deal available in the market. Shopping around can save you thousands of dollars.

Compare prices

Most people rarely switch brands and companies unless they have a good reason. This makes it easy to shop, but also easy to pay more than you realize.

Every few months go over your bills for internet, cable service, cell phones, and insurance providers. Compare prices with what other companies are offering, and see if you can find a better deal. You might be surprised at how much money you can save each month just by switching. You can also call your current provider, tell them what rate you have been offered, and then ask them to match it. Many will give you that same price to keep you with them if you are a long-time customer.

You should also start comparing brands for groceries and household items. Look at the quantities and make sure you’re not paying the same for a smaller amount. This requires some investigative skills, so dig deep.

Automate your payments and savings

After setting up your financial goals, it is important to automate those goals. Otherwise, you may easily fall back into the habit of overspending. A good place to start is by automating your retirement savings through your employer if they offer 401k and match some of your contribution. Next, consider automatic payments for all of your bills. Run through your finances to find new ways to automate your savings.

Avoid credit card debt

Credit card interest is expensive, and it can be easy to rack up unnecessary debt pretty fast with credit cards if you’re not mindful of your spending habits. Use cash instead whenever possible.

If you’re using a credit card to claim cashback on your purchases, it’s essential that you pay your balance off in full every month. If you’re unable to pay it in full each month, it’s best not to use it. One of the key frugal living tips is avoiding credit card debt because you can save a lot of money on interest, and sleep better at night.

Evaluate your subscriptions and memberships

Many people pay for multiple subscriptions they don’t need or use regularly like Netflix, Hulu, Spotify, Amazon Prime, magazines and newspapers. Most of the times, the same exact articles or publications are available online for free. You can read them right now and you don’t have to pay anything for that. So why are you wasting your hard earned money on that?

Also, if you have a gym membership that goes unused, cancel it and stop wasting money. Take the time to comb through your subscriptions and memberships, and decide which ones are worth keeping. To avoid wasting money on subscriptions and memberships that no longer provide value, go through your credit card statement to see what you are actually spending. If you see a recurring cost, ask yourself whether you really need that or you would be better off saving the money.

Ditch the cable

Wasting money on expensive or premium cable services that you don’t even use much? Depending on what cable package you have, this is one of the frugal living tips that can lead to significant savings. With all of the streaming service options, it makes a lot of sense to cancel your cable.

In the day and age of Hulu, Amazon Fire stick and Netflix, you can save hundreds of dollars each year that you are otherwise wasting on premium cable bills. Most live TV shows are available online within a day or two of their release. So, you won’t miss anything at all by cancelling your cable service.

Enjoy free entertainment

One of the best frugal living tips is having fun for free. Second-rate entertainment can be a big money waster. 23.10% of Americans waste money on entertainment. Instead of wasting your money on movies in theater or expensive games, try to find fun things to do that are free or won’t cost you much money.

There are a ton of free fun things to do, and our ‘Mother Nature’ offers a lot of entertainment free of charge. Take advantage of that and save money. Go hiking, go bike riding, play outside, build a bonfire with your friends, enjoy watching the sunset with your family, have a picnic in nearby park etc.

Check out your local library

A library is an amazing place full of free entertainment. Of course, they have a wide selection of books. However, most libraries also have extensive collections of movies, magazines, and and other free fun activities.

If you haven’t signed up for a library card in your area, then please do. You might be able to sign up online, and you can access your local library’s selection of books (including audiobooks) via apps like Libby and Overdrive. You’ll be surprised at the sheer amount of resources available to you for free.

Lower your cell-phone bills

If your monthly cell-phone bill competes with your monthly grocery budget, it’s time to find ways to cut back.

Save money on your cell phone service by getting rid of extras like costly data plans, phone insurance and useless warranties. And don’t be afraid to completely switch your provider for a better deal! It might require a little persistence and research, but the savings are worth it.

Enjoy home-made coffee

Millennials spend over $2,000 a year on coffee! That’s a lot! I’m not saying cut out your favorite coffee completely, but reducing the amount of money you spend can quickly add up.

Instead of spending $5 on that daily latte, you can save money by just making your coffee at home. Even if you average $20 a week on lattes to go, that’s still a whopping $1,040 a year that could otherwise be saved!

It’s hard to cut your favorite Starbucks coffee, and I get it. But you can purchase different flavors of coffee and creamer and have your cup of joe at home, and put that cash in the bank for something that will add value to your life. This is one of the frugal living tips that can save you a bundle of money over the years!

Grow your own vegetables

One of the benefits of growing your own vegetables is a reduced monthly food bill. You can grow organic vegetables for a fraction of the cost in the stores. Whether you live in an apartment or have a house with a yard, you can grow some of your own vegetables and herbs to save money.

Not only is growing your own vegetables one of the more unique frugal living tips, but it’s good for your health, too! When you pick vegetables right from your garden, the vitamin content will be at its highest. Also, you are reducing the risk of eating vegetables that contain harmful chemicals because you know exactly what you’re eating.

Stop impulse buying

Impulse buying is an unplanned decision to buy a product or service, made just before a purchase. This one is focused on instant gratification. This can destroy your budget because you will spend money without a plan and without thinking. This can result in overspending and not having enough money to pay the bills.

Impulse buying has never been easier, thanks to e-commerce. You can find anything and everything at the touch of a button, and before you know it, those late-night shopping sprees cost you hundreds to thousands of dollars. Learning how to stop impulse purchases is one of the most crucial frugal living tips to help you save money.

Don’t buy name brand products

People waste so much money on famous or luxury name brand items, only to impress the wrong crowds. One simple thing many people fail to understand: any car will take you from place ‘A’ to ‘B’; any purse will hold your personal belongings; any pair of sunglasses will protect your eyes from the sun just fine; any cloth will cover your body and keep you warm; and any wrist watch will tell you the exact time you need to know.

If you’re paying hefty prices just for the luxury brand names labeled on these products, mainly to impress others, you’re wasting your money instead of saving.

Every time you go shopping, substitute one brand item for the store brand. Generic brands of medicine, staple food items (like rice and beans), cleaning supplies and paper products cost far less than their brand-name, marked-up friends, and they work just as well, too. This is a simple frugal tip to figure out which cheaper brands you can live with.

Use regular gas

If you’re buying premium gas for a car that does not require it, experts agree that you’re most certainly wasting your cash. Because premium fuel costs as much as 25 percent more than regular, the increased performance may not be worth it, AAA said.

Your car runs fine with regular gas. Only use premium if your car requires it. Today’s engines are designed to protect themselves so even when an owner’s manual recommends premium, the car typically runs fine with regular gas.

Wash your clothes in cold water

Washing your clothes in cold water actually makes your clothes last longer (source). This is because cold water preserves the dyes and does not shrink your clothes. Delicate fabrics (lace and silk) and dark, colorful fabrics actually do best in cold water.

I run almost all my laundry through a cold cycle except for towels and pillow cases. For everyday washing, a cold cycle should be just fine. By not heating the water in your washing machine, you may reduce your energy costs with every load. An estimated 75 to 90 percent of all the energy your washer uses goes to warming up the water, so switching to colder water can lower your gas or electric bill.

Line dry your clothes whenever possible

Line drying your clothes is one of the common frugal living tips used by many people worldwide. This will save you money on electricity and dryer sheets – plus not having a dryer can save you space if you only have a small laundry room like many people do.

We have a clothesline in the backyard for when the weather is good, and an over-the-door drying rack for when we need to dry things inside.

Find ways to make extra money

The best way to start saving money is to increase your income so you have some extra money to save. This is often the only answer for people wondering how to save money when they are already frugal. With a modest boost to your income, you can save more money for the things that matter to you or you can use the money to pay off debt and be stress-free.

There is no shortage of side hustle options to earn some extra money. Consider starting one that fits into your lifestyle. It is important to find something that interests you. Otherwise, it can be difficult to find the energy to work after a long shift at your day job.

Frugal traveling

One of the best frugal living tips is to travel frugally. You can save a good chunk of cash by traveling places during their “off-season” and still have a wonderful vacation. You can also save while traveling by cutting down on eating out and opting for a place with a kitchen so you can make some or all of your own meals.

We love to travel, and while on vacations we hardly eat at restaurants. We cook and prepare almost all our meals, and that saves us tons of money and allows us to travel frequently on a budget. Also, things such as purchasing discounted airline tickets or fares can save hundreds of dollars, too.

Try a no spend month challenge

Sometimes it’s easier to stick to something if it’s in the form of a challenge. If you’re not sure where your money is going, why not try to do a no spend month? A no spend month is a month where you spend no extra money on wants or needs.

In a no spend month, you will still pay all your regular bills and budget for needed groceries, gas, and other essentials. The idea is to stay away from the stores, reduce your spending, and save as much money as possible to help pay off your debt or add to your savings.

Being frugal won’t make you rich (unless you have a high-paying job) but it can certainly help towards it! By following these frugal living tips, you can be wealthier.

Living frugally means you are managing your money to a high degree with the goal of being debt-free and having financial freedom. It doesn’t mean you have to deny yourself from enjoying life. Thanks to financial freedom you can travel, retire earlier, or take part in any other activity that makes you happy.