I’m Frugal: Here Are My Top 19 Money-Saving Tips That Actually Work
Have you ever been short on money and couldn’t buy what you needed? I remember when I had to buy medications for my sick aunt. At the time, my family and I were struggling financially, and my parents couldn’t help. So I used up my savings to help her.
It made me feel helpless and powerless. I didn’t ever want to be in the position that I couldn’t afford necessities for me or my family. To really work toward this, I leaned into a frugal lifestyle that I intend to maintain for the rest of my life.
It’s not easy to make a complete lifestyle change, but everyone has to start somewhere. If you’re up for the challenge, I’ve collected my best money-saving tips to help you achieve a more frugal life. Here are some realistic ways to survive today’s tough economy.
1. Track Every Expense
Know where every cent goes. The majority of the people don’t notice where they spend their money. Track your expenses and analyze how you spend your money will give you incredible insights.
Organize your expenses into categories and prioritize them based on your needs. When I first did that, I was shocked how much money I spent on eating out and clothes. But that’s why I track my money to this day, to see my spending patterns and decide if I spend my money aligned with my priorities.
2. Avoid Impulsive Purchases
It’s so easy to buy things online, you just click a button and it appears on the your doorstep the next day. To prevent impulsive purchases, I like to follow the 72-hour rule. How does it work? Write down what you want to buy and give yourself 72 hours to think it over. If you still want it after that time, go ahead and purchase it.
To prevent impulse purchases all together, consider deleting your shopping apps to avoid temptation. If you see trending items on social media, resist the urge by continuing to scroll past them.
3. Stick to a Budget
Create a budget that helps you avoid overspending by following the 50-30-20 budgeting rule. Allocate 50% of your income to necessities, 30% to wants, and save 20% in your personal savings account.
If the 50-30-20 rule feels challenging initially, consider starting with a lower savings percentage for the first few months. Not everybody has the luxury of only allocating 50% of your income to necessities, for example. Gradually adjust your budget as you become more comfortable with managing your spending.
4. Learn the Value of “No”
Investing in experiences can be valuable, but you don’t always have to accept every invite from friends and family. Unless you really want to go to the concert, vacation, or restaurant, consider saying no. Ask yourself if the money you’ll spend is worth the experience.
Saying no is a form of self-care, or consider suggesting activities that don’t cost as much money. Like having a picnic in the park or having a cocktail night at home. You don’t have to decline every invitation, but be selective about which ones you accept. This approach will help you avoid overspending and potential regrets later on.
5. Minimize Spending
Minimize spending by keeping your expenses in line with your income. Make choices that reduce costs, such as biking instead of driving if it’s doable for your situation. I am lucky enough to live in a very bike-friendly town with great public transport, so I don’t even own a car.
Besides that, consider downgrading your cellphone plan to a more affordable one. If you love shopping for clothes and shoes, you don’t have to give up that joy. Just limit your purchases or give yourself a set budget for that, so that your monthly spending doesn’t hurt your bank account.
6. Set Realistic Financial Goals
Set both long-term and short-term financial goals that are straightforward, realistic, and timely. Clear goals make you more motivated to achieve them.
White down your goals to solidify your commitment to achieving them. You want to be careful not to set unrealistic goals, however, as that can demotivate you and make you want to give up on your goals altogether. Be specific, especially with timelines, to clarify your objectives and have a clear path to reach them.
7. Buy Second-Hand
Second-hand purchases can be a great option, especially for families. Buying new clothes for kids can be impractical when they quickly outgrow them. Also for yourself, second-hand clothes are often much cheaper, allowing you to save money.
You probably don’t need to buy as many clothes as you think you do. When I started my journey toward a more frugal life, I didn’t buy clothes for 6 months. This turned into a year, which turned into two years. At a certain point you will need new things, but doing a similar challenge will show how little clothes you need. Try it for a month, and see how you feel.
8. Automatically Transfer to Your Savings Account
Every penny you save from living frugally should be automatically deposited into your savings account. While using a traditional piggy bank is nostalgic, it’s more practical to open a savings account.
With a savings account, you can set up automatic transfers from your checking account. Every time you receive your salary, a set percentage of that should go toward your savings or investments. This is convenient and allows your savings to grow without needing to think about it.
9. Choose Baskets Over Carts
Whenever possible, opt for a basket instead of a cart when shopping at the grocery store. While it requires more effort, it also helps you limit your purchases.
With a cart, it’s tempting to grab items and toss them in until the cart is full. This isn’t as likely with a basket that you have to carry to the counter. It fills up much quicker and you need to think about what you actually need. Of course, this isn’t always practical for families, but think about it if you just run into the store to grab a quick ingredient from the recipe you forgot.
10. Cancel Unnecessary Recurring Subscriptions
Cancel all unnecessary monthly subscriptions. If you love watching Netflix but rarely watch cable TV, why keep paying for it?
Assess all your current subscriptions, from TV and cable to online accounts. Get rid of the ones you haven’t used in the past two weeks. You’ll be surprised at how much this can reduce your monthly expenses.
11. Always Stick to Your Grocery List
When you go on a grocery run, make a list of the items you need to buy. Be thorough when making this list because you will need to limit your purchases to what’s written on it.
Strictly sticking to your grocery list will help you control your spending. It will also make you more mindful of your planning skills and where your money is going. I still buy a good deal if it’s a product we use anyway, but I won’t get a product just because it’s discounted or looks nice.
12. Skip the Fancy Gyms
Do you like working out? Skip fancy gyms and consider home workouts instead.
If you like using specific machines and see yourself using them for a long time, consider buying them as an investment. You might not get the sophisticated ones found in the gym, but basic models work just as well.
13. Visit Your Local Library
If you’re a bookworm who loves getting lost in a good story, check out your local library. Instead of purchasing books online or buying hard copies, you can borrow them from the library.
Besides books, you can also borrow movies and use the library’s computers. The key is to register and get yourself a library card. Compared to a $20 book every week, it’s much better to use the library for a wider selection and money saved.
14. Save Unexpected Income
If any unexpected additional income comes your way, don’t think about what to buy or where to spend it. Instead, save every dime. It’s easy to get excited about extra income or bonuses, but stay disciplined with your finances.
Whether it’s from side hustles or a cash gift from relatives, save it if you don’t have any pressing expenses. If you have no emergency fund yet, with three to six months of living expenses, that should be priority number one.
15. Choose Generic Brands
Branded items in grocery stores aren’t necessarily better in quality. Opt for generic brands when shopping. While it might involve some trial and error, you can start by checking which store-brand items have good reviews.
Many store-brand products are made in the same facilities as name-brand ones, meaning they are just as tasty but for a lower cost. For the occasional brand where you like the branded version better, feel free to go for that instead if it’s worth the additional cost for you.
16. Cook at Home
Americans spend an average of $2,500 every year dining out. Don’t be one of those people who regret spending money on restaurants when you can cook at home.
On workdays, wake up a little earlier and pack your lunch. If you can’t wake up early every day, make a big batch once a week and store it in the fridge. Do the same for your cooking in the evening, and this will significantly reduce your food expenses and time spent cooking.
17. Sell Things You Don’t Need
Before you start this new lifestyle, follow Marie Kondo’s advice and get rid of things that no longer spark joy. Organize all your belongings into categories: things to keep, donate, throw away, and sell.
Once you’ve gathered items to sell, clean them up and make them presentable. Hold a garage sale or post your items on online platforms like eBay and Facebook Marketplace to reach more buyers. This way, you can declutter your home and earn money at the same time.
18. Install and Use Cash-Back Apps
Cash-back apps may seem to good to be true, but they work. By offering discounts and cashback rewards, apps like ShopBack and Swagbucks have gained popularity for their effectiveness in helping users save while they shop.
With these apps, you just need to register on the platform and use it to purchase the items you need. The app will show you which items offer cashback and how much you’ll get from them. After each transaction, the cashback will be automatically added to your in-app wallet. This works for both online and in-store purchases.
19. Pay Off Your Credit Cards
One of the best things I’ve done for myself is paying off my credit cards monthly. Every month I sit down, go through all the charges, and pay off my balance.
With the 20%+ credit card interest rates, you want to avoid carrying a balance. Paying off your balance is a great way to stay on top of your finances, don’t spend more than you earn, and avoid high-interest debt.
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