My spouse and I use paper towels as napkins and split them in half so they last longer. It’s a habit we kept even when our household income hit six figures.
Eating out often starts with an appetizer at a bar during happy hour, and occasionally we pay with discounted gift cards. We opt for inexpensive new furniture or high-quality preowned pieces to keep expenses down.
What do we give up because we live frugally? Very little.
Paper towels serve perfectly well as napkins, it’s more enjoyable to sit at the bar in many restaurants, inexpensive couches can be comfortable, and a new table or bookcase becomes “used” the moment you’ve owned it a day.
So what do we gain by being “stingy”?
We’re debt-free. Even our house is paid off.
Our savings and low living costs allow us to comfortably weather the loss of any job or business, which reduces stress significantly.
Most importantly, being parsimonious about minor things frees up cash for what matters more — like travel, movies and simply spending more time together.
Put another way, “being cheap” is a path to greater liberty.
How Little Could You Get By On?
Our monthly outlays aren’t as small as they could possibly be, because minimizing expenses isn’t an end in itself.
We still spend a fair share of our earnings, but thanks to frugal practices and tactics, we have the freedom to allocate more of it as we please.
For perspective on how well someone can live on a tiny budget, look at the Wagasky family in Henderson, Nevada.
They manage on an annual income of $14,000 — well below the $23,550 poverty threshold for a family of four.
They possess everything essential, including a 1,400-square-foot home they purchased for $28,000 as a foreclosure. Danielle Wagasky explains how they stretch so little at BlissfulAndDomestic.com.
But why treat the Wagaskys’ situation as merely an exercise in contentment with a tiny paycheck?
Consider instead the flexibility you’d enjoy if you earned the U.S. median household income of $52,250, while meeting all your basic needs with just the first $14,000.
What would you do with the surplus? Your possibilities would expand dramatically.
With that idea in mind, here are some practical routes to achieve that kind of freedom…
Frugal Living Tips, Approaches and Techniques
It’s sensible to hunt for ways to cut spending on everything you buy, but the big ticket items count most. Housing, automobiles and food matter most, so we’ll begin there…
Your Home
If you own your residence, contemplate downsizing to shave thousands off your yearly costs.
If you rent, review ways to reduce your lease costs. Also consider home upgrades that can lower utility bills and save you hundreds annually.
Even better, do as I did and clear your mortgage faster by renting out rooms in your house.
Your Car
If your household has two vehicles, try managing with only one, or consider living without a car altogether if feasible.
If you need a car, at least shop for lower-cost auto insurance and check our guide of 23 tips to save on fuel.
If you’re determined to cut costs, learn basic auto maintenance skills, or at minimum use these tactics to reduce repair bills.
Groceries
There are many ways to lower grocery bills, including coupon strategies and taking advantage of retailers’ price-match policies.
With thoughtful meal planning, inexpensive recipes can be both nutritious and convenient.
Health Care
Don’t blindly accept a proposed medical treatment — getting a second opinion once saved me $6,000.
Explore all alternatives.
You can sometimes obtain dental work for free, and if you have a qualifying condition, you may even earn money by participating in a clinical study.
Travel
We frequently manage vacations under $500 by using top travel credit cards to secure free hotel stays and other perks.
Seek ways to arrange affordable adventure trips and consider free local activities during summer.
You might even monetize travel through hobbies like beachcombing and other side pursuits.
Everything Else
Below are numerous posts to help you save substantially on most purchases:
- 10 Items You Should Buy Used Instead of New
- Save Money at the Bar
- 5 Ways Procrastination Helps You Save Money
- How to Save $400 on a Brand-New King-Size Bed
- Negotiation Strategies for Getting Awesome Deals
- 10 Ways to Save Money on Carpet Cleaning
- 10 Ways to Eat Out for Less
- Use Coupon Codes to Save Big When Shopping Online
- 10 Free and Low-Cost Christmas Gift Ideas
- Budget-Friendly Beer
- Budget-Friendly Wine
- 101 Ways to Get Free Stuff
After applying a handful of these cost-cutting tactics, you’ll free up cash to spend on…
That’s where the freedom element appears. The choice is yours!
Alex Mercer is the author of “101 Unusual Ways to Make Money” and founder of EveryWayToMakeMoney.com. He’s worked as a repo agent, walking-stick maker, search engine rater, house renovator, tram operator, process server, mock juror and casino dealer, but among more than 100 ways he’s earned money, writing remains his favorite (so far).
