41 Frugal Living Tips To Save a Ton of Money in 2024
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Are you searching for frugal living tips to improve your financial standing and free up more money for saving and investment? If so, you’ve come to the right place.
Most people associate frugality with living cheaply. However, embracing minimalism means living within your means without compromising your life’s quality.
There are easier ways to save money without depriving yourself of life’s pleasures or sacrificing quality. That’s why I’m sharing insights into mindful spending, maximizing value, and minimizing cash wastage.
What Is Frugal Living?
Many people cringe at “frugal” because they believe it’s synonymous with cheap. Most think you must stop spending and save money to build wealth.
But how will building wealth benefit you if you develop poor physical or mental health along the way?
Frugal living means spending your money mindfully and smartly to improve living standards while minimizing waste and saving money.
It’s more about making the most of your money than trying to reduce expenses below your living standards.
For instance, purchasing a coffee maker instead of spending $10 at your favorite cafe every morning saves you money in the long run and ensures you consume good-quality coffee.
What Is the Difference Between Frugal and Cheap?
Frugal and cheap are usually used interchangeably, but the two are different. Being cheap means focusing on cutting costs without considering anything else.
On the other hand, being frugal is more about being smart with your money than reducing your expenses. Cost is a consideration in frugality, but it isn’t the only one.
Cheap people are likely to sacrifice quality to save money, while frugal people always choose quality.
For instance, if presented with two dresses, one more expensive than the other, a cheap person is likely to choose the cheaper option even though the alternative is more likely to last longer.
Is It Good To Be Frugal?
The benefits of being economical and keeping an eye on your money are endless. The most common is saving more money, but it can also improve your mental health in the long run.
Some other upsides of living a thrifty life include:
- Low stress
- Financial stability
- Less debt
- More control over your finances
- Less clutter
- A sustainable lifestyle
- Reduced waste
- Financial flexibility
There’s a fine line between being frugal and being cheap. You must take care not to become a penny-pincher as you keep an eye on your finances.
Frugal Living Tips To Save Money on Food and Groceries
The average American household spends a lot of money on food, making it a great place to start monitoring your finances.
According to the Bureau of Labor and Statistics, the average consumer in the US spent about $6,081 monthly on food alone.
Here are some practical ways to save money on groceries and food without compromising quality:
1. Cook at Home
Avoiding take-out is among the best ways to reduce your expenditure on food. Furthermore, home-cooked meals are healthier and, in most cases, tastier than take-out.
You don’t have to be a chef to make good meals. I simply mean that preparing your meals allows you to choose your ingredients and prepare meals to your taste.
While it can be time-consuming, the cost-benefit of cooking from scratch is immense.
Think about it: if you usually use $15 for lunch daily, carrying a packed lunch to work or school will save you about $450 monthly and $5,400 annually!
2. Buy Multipurpose Ingredients
The most significant advantage of purchasing multipurpose ingredients is saving money. You can use these ingredients in several recipes and buy them in bulk for less.
Plus, multipurpose ingredients allow you to diversify your meals and get creative without using too many things.
Eggs are a good example. You can boil them for breakfast, add them to your dessert, or fry them for dinner.
3. Grow Your Food
Having a vegetable garden is not only cost-saving but also therapeutic. This is for you if you enjoy getting your hands dirty.
Having fresh fruits, vegetables, and spices in your kitchen garden saves you a lot of cash while contributing to your overall health in the long run.
4. Purchase In-Season Groceries
Have you bought a can of fruits for $10 and then saw the same can go for half the price after a week? This is the benefit of buying groceries while they’re in season.
The basic law of supply and demand. High supply translates to lower prices, while low supply translates to higher prices.
For instance, buying watermelons in the summer is way cheaper than at other times of the year.
5. Buy Groceries in Bulk
You’ll get better discounts when you purchase groceries in bulk. However, it beats logic to buy in bulk only to let the items go to waste.
That said, only purchase groceries and food items in bulk when necessary. Always check expiry dates and indicate them on your Ziploc bags to avoid consuming expired items or disposing fresh items.
Invest in a freezer and storage containers to prevent your groceries from going bad ahead of time.
Buying in bulk also helps save money on seasonal items. For instance, by purchasing fruits and freezing them at the end of summer, you can enjoy their freshness all year round!
6. Don’t Skip Breakfast
Most people believe skipping breakfast is a recipe for greatness and good health. But how does it affect your pocket?
You may go all out and buy an expensive lunch to compensate for the missed meal. Investing in a good breakfast helps you save big on the next meal.
For instance, you can have a bowl of oatmeal in the morning and fruit for lunch.
7. Reduce Food Waste
Sadly, most households dispose of leftovers without considering how that affects their financial spending.
Repurposing leftovers is a practical way to reduce waste. Packing leftovers from dinner for lunch at work is a great idea.
If you cringe at eating leftovers, cooking in small batches is a more sustainable option to reduce waste. This way, you can consume everything in one sitting.
8. Prep Your Meals In Advance
Do you ever come from work after a long day and are too tired to cook? Or do you sometimes have trouble figuring out what to prepare?
I’ve been in this situation, and meal-prepping works for me! Preparing your meals in advance gives you more control over what you eat while preventing impulse buying when you don’t know what to cook.
It also saves time since you only need to heat food, not cook it from scratch. Simply create a meal plan and plan out your meals at the beginning of each week, and be intentional about making this work.
Frugal Living Tips To Save Money When Shopping
Practicing mindful spending helps you save money when shopping.
Impulse buying is the most common way of wasting money when shopping. And in most cases, you won’t use the item you buy impulsively as much as you thought.
Sometimes, buying the items for less is better than cutting things out of your shopping list. Let’s dive right into several tips on saving money when shopping:
9. Have a Budget and Shopping List
Having a budget and shopping list helps you know exactly what you want. You’re more likely to pick random items when you don’t have a list to guide you.
Having a budget doesn’t mean depriving yourself of luxuries. Studies show that you’re more likely to stick to your budget if you include the fun stuff.
Add a few snacks to your list to avoid impulse buying adversely affecting your finances. Saving money can be fun, too!
10. Invest In a Capsule Wardrobe
Building a capsule wardrobe may take time, but it’s worth it in the long run. A capsule wardrobe consists of timeless pieces like white t-shirts, trench coats, and straight-leg jeans.
Such a wardrobe keeps you from jumping from trend to trend, which might be expensive in the long run. It also helps you reduce clutter since each purchase is thought through.
Don’t compromise on quality since you need long-lasting pieces for your capsule wardrobe to make sense.
11. Skip Convenience Purchases
You’re paying extra for convenience when you buy pre-cut fruits or cookies in a jar instead of a bag.
If you’re looking to adopt a frugal lifestyle, consider reducing your convenience spending. Cutting up fruits takes a few minutes, and storing cookies in a Ziploc bag costs nothing.
12. Use Cashback Apps
Cashback apps are a practical way to enjoy discounts without reducing the size of your shopping list.
These apps generally require you to upload your shopping receipts to earn cashback. You can also link your debit and credit cards for seamless saving.
Here are some of the best reward apps that pay you to shop:
- Drop: Besides shopping, the Drop app lets you earn additional income by playing games, completing surveys, and referring your friends.
- Pogo: This cashback app pays you to shop, eat out, share your location, and complete surveys.
- Upside: Sign up on Upside to earn cashback at restaurants, gas stations, and grocery stores.
- Fetch Rewards: This company partners with brands like Kleenex, L’Oreal, and DoorDash to reward you with cashback on your spending.
- Rakuten: Still considering cashback apps to save money? Rakuten partners with over 3,500 brands to make this possible. Earn $30 when you sign up.
- Ibotta: Ibotta’s location feature notifies you of cashback offers in your area.
- Shopkick: Another app that pays you to shop.
The best thing about cashback is you can stack several apps to maximize your savings. Plus, they facilitate cashback on online shopping, making it the perfect opportunity to save on gas.
13. Invest Your Spare Change
Rounding up your spare change is another clever way to save money on shopping. For instance, if you buy something for $4.80, round up the amount to $5 and save the extra $0.20.
Keeping track of your expenditure this way may take time and effort. That’s where Acorns comes in.
The platform automatically rounds up your spare change and invests in stocks once your savings accumulate to $5. Simply sign up and link your bank account to start your savings journey.
And if you make a successful recurring investment of $5, you’ll earn a $20 sign-up bonus.
14. Buy Generic Brands
Most companies package their items in two ways: to appeal to those who value brand names and those on a budget. In most cases, brand-name products aren’t superior to generic items.
You can save up to 50% by switching from brand names to generic brands. However, don’t rush things. Try several store brands to determine quality.
While saving money is important, I recommend using brand names if the generic ones are poor quality.
15. Buy Second-Hand
Think second-hand when purchasing goods like books, furniture, clothing, sneakers, and electronics.
This is a practical way to enjoy brand-name products without paying extra. You can save up to 50% on lucrative discounts.
Besides saving money, purchasing secondhand items reduces the carbon footprint of a product. Plus, you also get unique items compared to when you buy new.
16. Don’t Linger In the Store
Shopping should be an in-and-out business. The more time you spend in the store, the more likely you’ll purchase unnecessary items.
Organize your shopping list into different categories. For example, dairy and fruits, to navigate the store quickly.
17. Buy Reusables
How often do you replace paper towels, plastic shopping bags, and disposable straws? I bet you do it often. I used to do that, too, before I discovered frugal living.
Reusable items save money in the long run while reducing environmental impact. Consider replacing paper towels with microfiber cloths and plastic bags with reusable shopping bags.
Frugal Living Tips To Save Money on Housing
Still looking for ways to cut down on expenses? Here are some fantastic ways to save money on housing:
18. Downsize Your Living Space
If you live in a house that’s too big for your family, downsizing might be a practical way to save money.
Moving to a smaller and cheaper house is one option. Also, remember that property costs vary by state and region. You can further maximize your money by moving to an area with lower costs.
Moving can sometimes be scary, especially if you have kids and a spouse to consider as you decide.
Don’t worry. Moving houses or states isn’t the only viable option. Consider freeing up space and renting it out for storage on Neighbor or overnight stays on Airbnb.
19. Find a Roommate
What if you don’t have a family and want to free up more cash for vacations, savings, or to pay off your student loans?
Finding a roommate is an excellent way to cut back on housing costs. Sharing rent, groceries, and cleaning supplies can save you over 50% of your expenditure.
It helps if the person is a friend or family. However, if that’s not an option, consider finding a roommate on sites like RoomieMatch, Craigslist, or Roomster.
You can also rent your extra room on Airbnb if the long-term commitment with a stranger frightens you.
20. DIY Repairs
There’s nothing you can’t do in this age of social media. Experts are leveraging social media platforms like Pinterest, Instagram, and YouTube to share knowledge on how to do it yourself.
Becoming your own plumber, mechanic, or gardener may be just what you need to free up more cash. Plus, with more experience, you can leverage your skills to make extra money.
However, you must proceed cautiously, as trying to repair something without sufficient knowledge may cost you more money.
21. Furnish on a Budget
I used to scroll through reels, wondering how people furnished their houses aesthetically without breaking the bank.
You can imagine my surprise when I learned you can find free furniture on Facebook Marketplace.
People always sell their stuff at throw-away prices or give them out for free to declutter or upgrade their space.
Scouting thrift shops, Craigslist, and garage sales is a nice way to find high-quality furnishings on a budget. You don’t have to look for free stuff, just items worth the price.
A major upside of thrifting is you get unique items you wouldn’t have discovered if you bought something new.
22. Rent Rather Than Buying a House
Owning a home is every American’s goal, but sometimes renting is a better solution to improve your financial standing.
One advantage of renting property is you don’t cover any maintenance or repair costs. If you’re a homeowner, you’d be responsible for renovations.
You can access amenities like pools and fitness centers by renting a property, which may be too expensive to acquire as a homeowner.
Another advantage of renting is evading property taxes, which pose a heavy burden on the average property owner in the US.
23. Repair Instead of Replacing
Replacing is the first thought that comes to my mind when something in my home stops working.
It took me some time to realize that repairing something may cost up to 70% less than buying a new item, especially with household appliances.
You don’t need to do it yourself; simply find an expert to do it for you. However, repairing isn’t always the best option. Always consider both sides to find the best one.
Frugal Living Tips To Save Money on Utilities
Here are some practical ways to reduce energy consumption and reduce your monthly utility bills:
24. Reduce Your Electricity Usage
Making your home energy-efficient helps save money in the long run. You can reduce your electricity bill by:
- Using LED light bulbs
- Using energy-efficient appliances
- Turning off lights when not in use
- Using energy-saving bulbs
- Using natural light during the day
You can decide to power your home with 100% renewable energy, even if you’re renting. With Acardia, you can achieve this without any commitments or installations. Plus, you get a $10 bill credit upon sign up.
25. Don’t Run Your Washing Machine or Dish Washer Unless It’s Full
Running your washing machine or dishwasher before it’s full wastes both water and energy. Waiting an extra day to clean everything at once won’t hurt.
You can also conserve power by handwashing your clothes and dishes when you can.
26. Reduce Your Water Bill
Water is among the few things that sustain human life. As they say, water is life. However, wasting water may increase your utility bills by a wide margin.
If you aim to live a frugal life, consider lowering your water bills by implementing the following:
- Use an energy-efficient water heater
- Repair leaks as soon as they occur
- Take shorter showers
- Utilize drip irrigation instead of sprinklers
- Harvest rainwater for use in outdoor activities like cleaning the car
27. Take Advantage of Off-Peak Electricity Rates
Like every other commodity in the market, electricity is subject to the law of supply. Most companies charge more during peak hours, like during the day and peak seasons, like summer.
Waiting for off-peak hours to run appliances like your washing machine or dishwasher is an excellent idea if you want to enjoy lower rates.
28. Clean Your Air Filters Regularly
As the name suggests, air filters typically filter air to remove debris. Cleaning or replacing your air filters regularly helps maintain a consistent airflow to and from the HVAC system.
But how does it affect your finances? Neglected air filters may become clogged with debris from uncleaned air.
Once that happens, the HVAC system works harder and consumes more energy, leading to higher energy consumption and utility bills.
Frugal Living Tips To Save Money on Entertainment and Gifts
As discussed in the article, choosing a frugal lifestyle doesn’t mean abandoning all forms of entertainment.
Thriftiness is concerned with your overall well-being, including good quality entertainment.
However, sometimes, we tend to go overboard and spend too much money while alternative ways exist to save money.
29. Switch to Cheaper Hobbies
Hobbies like attending every concert in your city, eating out twice every week, or paying entry fees to a sports field may be expensive in the long run.
Plenty of alternatives provide the same fulfillment at a lower cost. For instance, using YouTube for at-home workouts is cheaper than having a gym membership.
You can also pick up hobbies you can monetize. For instance, consider getting into flipping, photography, or blogging.
30. Cut Cable
Paying for cable TV is expensive in the long run, especially if you don’t watch as much. Imagine paying over $200 monthly for something you don’t use.
Streaming services like Netflix and Hulu are cheaper alternatives. Honestly, I don’t think the cost of cable TV being higher than that of essential utilities combined makes any sense.
31. Make DIY Gifts
They say the way to a person’s heart is through the stomach, but in my opinion, gifting is a universal love language that speaks volumes.
But do you have to break the bank to get a loved one the perfect gift? Everyone who understands gifting knows it’s never about the gift but the intention and thoughtfulness behind it.
A more frugal way to approach gifting is by making DIY gifts. Instead of spending over $1000 on a gift, watch a free video on YouTube or Pinterest to learn how to make the gift from scratch.
Besides the cost-saving benefit, making something from scratch adds a personal touch.
32. Utilize Community Facilities
Most communities have free amenities like basketball courts, parks, and tennis courts.
The next time you want to play a game with your friends, consider going to these places instead of paying entry fees in a private facility.
There are also free lessons within communities where you can learn anything from cooking to dancing. You can learn these skills for free and then monetize them later on.
If you’re a fitness fanatic, a community fitness center will likely have lower rates than paying for a private gym membership.
33. Cancel Unused Subscriptions
Another way to save money on entertainment is by canceling subscriptions you no longer use. Start by listing all your subscriptions and arrange them according to preference.
From there, you’ll be able to identify those you no longer use and those that aren’t sparking joy and excitement in you anymore.
Sharing streaming accounts with friends or subscribing to a family plan can also help you save money. I save 50% of the cost of Netflix because I share my account with a friend.
34. Take Advantage of Group Discounts
Whether taking a trip, watching a movie, or attending a concert, group purchasing is a nice way to save money.
Most events usually have group discounts you can take advantage of. And even if they don’t offer them, a bit of negotiation may save you a few dollars.
Frugal Tips To Save Money on Banking and Finance
Here are some practices to adopt to live frugally and maximize your money:
35. Automate Your Savings
Sometimes, we get so caught up in life that we forget to pay ourselves first when the paycheck comes in.
One way around this is automating your savings. This means setting a specific account to be deducted from your bank account towards your savings at a frequency of your choice.
You can organize this with your bank, employer, or a savings app like Acorns.
36. Automate Bills To Avoid Lateness Penalties
Automating your bills has several advantages. Firstly, you avoid penalties by paying your bills on time.
Another advantage is improving your credit score. This gives you access to favorable interest rates on credit cards and loans.
Automating your bills also saves you from interruption of services, which may affect your productivity.
37. Opt for Online Banking
Unlike conventional brick-and-mortar banks, online banks usually have lower overhead costs, translating to lower fees and interest rates.
Since transactions occur online, online banks save you the trouble of visiting physical branches for every transaction. This helps you save on gas and time.
38. Compare Different Banks
Choosing a bank is a tough situation that can impact your financial life in the long run. It’s wise to compare different institutions to find the one that best aligns with your needs.
Also, consider interest rates on savings accounts, loan terms, and overall fees.
Other Frugal Living Tips To Save Money
Here are some additional frugal living tips to save money:
39. Declutter Your Home
Decluttering your home enhances your overall well-being by creating more space for other things. It’s also a nice way to make extra cash.
The best thing about this is you can sell virtually anything from clothes to used furniture and toys.
Simply take clear photos of your items and list them on marketplaces like Facebook, eBay, or Mercari. You can also organize a yard sale if there’s a lot of clutter or you want to evade shipping fees.
Read my guide on the best items to flip.
40. Use Free Money Hacks
While it may sound too good to be true, there are many ways to earn free money. Some of the best options include using rebate apps like Ibotta, earning sign-up bonuses, and completing surveys.
Some of the best online survey apps that pay well include:
Other sites like JustPlay and Mistplay reward you with gift cards and PayPal money for playing games.
Leveraging these side hustle ideas is an excellent way to increase your income and improve your life.
41. Host Potlucks
Most of us like meeting with friends over dinner at a restaurant or coffee at our favorite cafes. However, eating out more than we should may affect our finances and health in the long run.
The next time you plan to hang out with friends, consider hosting a potluck where everyone brings a home-cooked dish. This way, you unwind and bond over a healthy and cost-effective meal.
Frequently Asked Questions
How Do You Practice Extreme Frugality?
There are several ways of practicing frugality, including:
- Creating and sticking to a budget
- Cooking at home
- Making DIY gifts
- Buying second-hand items
- Purchasing multipurpose ingredients
Is Frugal Living Worth It?
Frugal living is worth it since it focuses on cutting back on expenses while improving your quality of life.
Whether you want to clear a debt, save for a trip, or set up an emergency fund, thriftiness is a great option.
However, avoid getting carried away and crossing over to being a cheapskate.
Final Thoughts
You shouldn’t try to implement all these frugal living tips at once. Plus, not all will work for you.
Look at every option to find the ones that best suit your needs. And as you try to adopt a frugal lifestyle, remember that cutting costs isn’t the only concern.
You shouldn’t compromise the quality of your life just to save a few bucks. Besides, you can live cheaply without appearing poor.
