15 Frugal Living Tips to Help You Save Money Every Day

The fact that you’re reading this article proves you’re looking for ways and means to save money on your daily, weekly, and monthly expenses. Saving money has become imperative due to the soaring cost of living combined with stagnant salaries and wages or even profits from own business. If you want to cut costs and build a strong financial future, practicing frugal living can be the best approach.

Let’s get this clear: the rising cost of living isn’t caused merely by inflation. There are other factors too that send our living costs skyrocketing. A major reason is our growing wants and demands after meeting all our needs.

Furthermore, the needs of modern persons aren’t confined to mere basics such as food, clothing, and shelter. Basic needs nowadays also include transportation, communications, and education, to name a few. Add to that basic healthcare and some entertainment. This is why frugal living isn’t just about spending less but making smarter financial decisions to balance needs and wants.

Understandably, the number of needs that we as persons living in modern society have, puts additional strains on all our resources and income. Consequently, we often find the money earned isn’t really sufficient to meet all our needs and wants or even occasional indulgences.

This translates to lower savings and financial stress caused by a shortage of money for all our expenses. Households with kids and teenagers face greater financial problems than singles. Similarly, seniors also require extra money for healthcare, during those golden years when all active sources of income aren’t available any longer. By adopting frugal living habits, families and individuals can significantly reduce financial stress and save more money.

Maybe you’re one such person facing such financial problems that seem rather unsurmountable at the moment. If that’s your case, continue reading further. In this article, I will be providing 15 amazing tips to live frugally and save on daily expenses. These tips could help you have a superb bank balance over some time and relieve some of the financial stress that you could now be experiencing.

Let’s begin by understanding the meaning of frugal living.

Comprehending Frugal Living

Unfortunately, most people mistake frugality with miserliness. This is wrong. There’s a vast difference between frugality and miserliness. It’s essential to comprehend these differences to ensure that you continue enjoying an enjoyable and healthy lifestyle. Understanding frugal living correctly helps you balance financial stability without unnecessary deprivation.

1. Characteristics of Miserliness

• Misers are driven by an excessive and often morbid desire to hoard money. They do so by depriving themselves and household members of even the basic needs and expenses. Unlike misers, those who practice frugal living know how to save wisely without compromising essentials.
  
• Usually, miserliness causes persons to hide or conceal income to create an impression of poverty and hence, avoid spending on essentials such as healthcare or education, affecting self of entire households. Frugal living ensures financial security while allowing you to invest in health, education, and personal growth.
  
• Misers lead a miserable and often, socially isolated life, rife with mental agony and physical anguish bordering on torment. Usually, they aren’t satisfied with the hoarded money and suffer an insatiable craving for more. In contrast, frugal living brings peace of mind and helps maintain a comfortable yet cost-effective lifestyle.

2. Characteristics of Frugality

• Frugal persons are financially aware and spend on needs and essentials while cutting down whimsical or fancy expenses. This is why frugal living promotes mindful spending and ensures financial stability over time.
  
• A frugal person doesn’t deprive themselves of life’s pleasures even while reducing or eliminating ostentatious expenditure. They spend judiciously and aren’t given to impulses or rash financial decisions. Living a frugal life means making smarter financial choices, not sacrificing joy.
  
• Frugality, if practiced correctly, could lead to financial well-being and stability while eliminating money-related mental stress and its physical consequences. It could lead to a happier household. Through frugal living, households can enjoy long-term financial security and stress-free financial management.

As you would have seen from the above descriptions, frugality isn’t depriving oneself. Instead, it calls for prudent spending while reducing or even eliminating frivolous expenses. Practicing astute frugality over some time could help achieve several financial goals without any drastic lifestyle changes.

In a nutshell, frugality implies making the right decisions to spend on the right things instead of being impulse-driven or boastful. By mastering frugal living, you can create a sustainable financial future while still enjoying a quality lifestyle.

15 Proven Frugal Living Tips

Using these frugal living tips is very simple and easy. However, you will have to inculcate these in your lifestyle gradually since any abrupt changes could prove counterproductive and you might lose money.

Therefore, I suggest a cautious and calculated approach to using these time-tested and proven frugal living tips. Adopting frugal living habits gradually ensures long-term success in saving money.

1. Learn the 50-30-20 Rule

The 50-30-20 rule was created by Elizabeth Warren, an American Senator and author of “It’s Your Money.” This rule provides a very simple and practical way to divide your income. The 50 percent stands for inevitable expenses or basic needs while the 30 percent signifies money that you could keep aside for fulfilling your desires and wants. The balance of 20 percent is savings.

Therefore, resolve to spend only 50 percent or less on your requirements and paying bills. You could save the balance 50 percent by staying off unnecessary expenses. If needed, you could still borrow from the 30 percent of your income to meet any demands and wants. Frugal living encourages following structured budgeting methods like the 50-30-20 rule for better financial stability.

Also Read:

• How to Save Money from Salary?
• How Living Stingy Helps Achieve Your Financial Goals Faster

2. Draw a Budget

The majority of folks that plan to save money usually fail due to one simple reason: they don’t create a budget or adhere to one they make. Budgeting is one of the best ways to save money helps you apportion your money correctly for various expenses such as food, clothing, mortgage, healthcare, taxation, entertainment and others. You could use an excellent free budgeting app to keep tabs on expenses and find whether you’re spending more on any specific head.

Analyzing your spending patterns helps save money because nobody really enjoys overshooting their stipulated budget. However, once you draw a budget, stick with it fully. Creating and sticking to a budget is a fundamental step in frugal living, ensuring controlled spending.

3. Eliminate Food Wastage

American households waste between 33 percent and 38 percent of all food, including raw ingredients, frozen or canned good,s and cooked food. An average US household of four persons spent $823 per month on food in 2023 and the figure is rising now due to inflation and other factors. This means you’re spending close to $10,000 per year on food. By wasting food, your household and you could be dumping as much as $3,800 per year in the trashcan.

To live frugally, eliminate such food wastage. This can be done by simply buying smaller quantities and cooking only for one meal at a time. Though this takes effort, the results would prove worthwhile. Being a frugal money saver means making smarter choices with your resources, and food frugal practices can significantly help you cut down on waste. Frugal living promotes mindful consumption, helping you reduce food waste and unnecessary spending.

Also Read:

• Preventing Food Wastage to Save and Earn Money
• How To Get Free Food in 20 Simple Ways
• Best Cheap Food to Buy When Broke

4. Buy Generic Products

Buying generic products for household purposes can save a lot of money. Branded goods are invariably priced higher. Often, there’s no difference in the quality of generic stuff and branded ones. This means you would still be able to get the best quality for a much lower price. In some instances, generic goods cost almost half the price of branded ones, due to taxation-related laws.

Look for stores in your area that sell generic goods. Test their quality and you might be pleasantly surprised to find they meet most of your expectations. People spend on brands due to a habit, though it’s not necessary. A key aspect of frugal living is choosing cost-effective alternatives like generic products to save money.

5. Inhouse Brands

Almost every major store in the US, from Kroger to Walmart, Amazon, and 7-Eleven has in-house brands for a lot of products. These products are priced relatively lower than their competitors because stores wish to promote their brands.

In most cases, the quality of these in-house products would be comparable with that of your favorite brand. Try these in-house brands and save money on your shopping and daily life. Frugal living encourages switching to in-house brands for quality products at lower prices.

6. Shopping in Bulk

Shopping in bulk can be cut both ways. If you’re careless, shopping in bulk could result in a lot of wastage. However, if you’re prudent enough, buying in bulk could save you as much as 30 percent on bills. If you’re unsure about using all the bulk shopping in your own household, get some friends or neighbors to share the quantity. If the quality is superb, it’s easy to find a couple of sharers. That way, everyone saves some money on shopping for daily needs and household requirements. Smart bulk shopping is a frugal living strategy that reduces costs while avoiding unnecessary waste.

7. Signup for Freebies

This could come as a surprise. Several American companies give away lots of freebies daily. There are specific websites where you could sign up to get these freebies. Such stuff includes everything from detergents and diapers to pancake premixes and rice, to name a few. Of course, the products you get will depend on your location, age, and other factors.

Usually, such companies ship samples to your address, once you register successfully. In exchange, you’re expected to write a small review of their products. By simply signing up to get freebies and samples, you can slice off a few Dollars on your monthly expenses. Taking advantage of freebies and sample offers is a simple yet effective frugal living hack.

8. Save on Power

Power bills in the USA can wreak havoc on your personal finances. The average power bill per month for a family of four works up to about $150 per month or close to $1,800 per month. Of course, a lot of this depends on your location, types of appliances at home, number of household members and their ages and other factors.

However, studies reveal that US families waste a whopping 35 percent of electricity every year. This averages to about $630 every year. This precious money can be saved simply by switching off lights and appliances when not in use or reducing the wattage of lights. Frugal living includes energy-saving habits that lower utility bills and reduce waste.

9. Using Rideshare

The American Automobile Association (AAA) estimates that motorists spend between $0.50 and $1 per mile to operate a vehicle. Since distances in the US are quite large, you can easily calculate the amount of money spent on driving to work and back. Instead, you can slash this expense considerably by simply using rideshares.

Nowadays, there are several rideshares available for most locations in the country. Sharing a vehicle to commute between home and workplace can save a lot of money every day. Frugal living encourages cost-effective commuting methods like ridesharing to save money on transportation.

 10. Reduce Dining Out

Dining out can be pleasurable and indeed, every person needs it occasionally. However, look at the dining out habits in your household. If you find that you’re spending a lot of money on dining out, reduce the frequency or reserve such dining for special occasions only.

Enjoying occasionally is fine but spending too much on restaurants can eat heavily into your household finances. Discuss this with the family before embarking on any such reductions in dining out frequencies. Food frugal living encourages home-cooked meals over frequent dining out, helping you save more money.

11. Eliminate Useless Subscriptions

Over 90 percent of gym memberships, 95 percent of magazine subscriptions, and lots more go waste every year. This happens because we subscribe or take memberships with good intentions but stop using them almost as soon as we get busy with routine. Most of these subscriptions are auto-renewed.

If you’re subscribing to any such memberships and services, review them carefully and disconnect. In some cases, you might get lucky to recover some costs of part of the unused packages. Or, at least you would have stemmed future losses. Frugal living teaches you to cancel unnecessary subscriptions and only pay for services you truly use.

 12. Lower Liquor Spends

Most American households spend an average of $583 per year on alcohol. This isn’t a wasteful expense considering wine, beers, and other such drinks. However, there’s enough scope to save some money you spend on liquor every month. Understandably, this would depend a lot on your lifestyle and the number of members in the household.

Buy liquor from stores known for discounts on the same brands or buy in bulk to save higher retail prices. Frugal living helps you cut down on non-essential expenses like liquor, without giving up occasional enjoyment.

13. Watch Credit Card Bills

Credit card bills left partially unpaid or partly paid, can add up to a grand figure and let credit get out of your control. A lot of American households are grappling with high credit card bills. Moreover, an average American adult owns at least two credit cards.

While a credit card isn’t bad and spending is justifiable, letting bills accumulate isn’t good for your finances. Unpaid credit card loans attract heavy interest and these could rob you of any financial dreams. Smart frugal living includes managing credit wisely, avoiding unnecessary debts, and paying bills on time.

Also Read:

• Top 5 Ways to Restructure and Repay Your Credit Card Debt Quickly
• How To Use a Credit Card? 12 Tips for First Time Users
• How Many Credit Cards Should You Have?

14. Buy From Markets

Buying fresh produce from farmer's markets and fisherfolk can often prove cheaper than buying fruits, vegetables, and fish from stores. However, this can prove a bit confusing if you’re looking for organic stuff.

Generally, organic produce is pricey. Yet, at some farmer's markets, you could get a good deal. Usually, you will have to buy large quantities. This is fine as long as you have a sharer for the large, bulk quantity. Frugal living encourages shopping from local markets, ensuring fresh produce at budget-friendly prices.

15. Maintain Superb Health

You might wonder about the relationship between frugal living and maintaining superb health. Both are intricately intertwined. In the US, out-of-pocket medical expenses, meaning those your health plan will not cover, stand at an astounding $1,450 per year.

More if you’re a senior or have a chronic ailment not covered by health plans. You can eliminate or reduce such out-of-pocket expenses on medical treatment and therapies simply by maintaining good physical and mental health. A core part of frugal living is staying healthy, reducing medical expenses, and avoiding preventable health costs.

Wrap Up

Using these 15 simple tips could help you to save a lot of money and live frugally. As I mentioned earlier, frugal living isn’t about giving up the comforts and pleasures of life. Instead, it's all about prudent spending and enjoying or even upgrading your lifestyle. With these simple tips and tweaks, you can easily live frugally and look forward to a happy financial future.