Is money tight? If so, you aren’t alone – millions of others struggle with this as well. The good news is that you can control your spending and saving habits through living cheap. In this article, I’ll go over the best cheap ways to live that you can integrate into your life. Enjoy lower-cost alternatives without feeling you’re sacrificing the quality of your life, free up cash to take financial risks and take care of future you.
Read on to learn about the top cheap ways to live.
Understanding the Importance of Practicing Cheap Ways to Live
Why Integrate Cheap Ways to Live Into Your Daily Routine?
Frugal living is important. Why? Even if you’re a person with a decent income, there are many benefits to living frugal. Let’s get into the top reasons why below:
Achieving Financial Goals
The number one reason you should consider frugal living: taking care of future you. Whether you like to think about it or not, life marches on. One day, you won’t be able to work anymore, but you’ll still need to pay for expenses. While you may live in a country where you receive retirement security payments through the government, it’s important you don’t entirely rely on that as a source of income. There are three main reasons why:
- It’s not enough money to live on. In many places such as the US and Canada, you receive a pension that will only cover a third or less of your living expenses.
- Federal and state pensions could decline in the future and you cannot control how much money your government decides to allocate towards everyone in the future.
- Your health may decline and you’ll need additional funds to pay for your medical expenses.
For more information regarding why it’s important to set aside your own assets for retirement, refer to this article by Investment Sense.
Freeing up Money to Take Financial Risks
In addition to living life on the cheap helping you achieve long-term financial goals, extra cash provides a security blanket. Once you’ve funded an emergency savings account and have a regular plan to invest for short and long-term goals, you can think about creating another financial cushion to fund your dreams. For example, after I paid off my debt, funded an emergency plan and created a long-term investing strategy, I regularly contributed to a ‘move abroad’ fund. Thanks to my frugal living plan and separate bank account I contributed to regularly, I was able to quit my job in Canada and fund several months of travel and a relocation to Southeast Asia!
Feeling a Sense of Satisfaction from Enjoying Life on the Cheap
When you find and practice cheap ways to live, you’ll feel good. Why? When you buy something or take part in an experience that’s a fraction of what you’ve paid in the past, you’ll feel a sense of accomplishment. Frugal living takes work – it’s a lot easier to just buy whatever product or service you need without looking at the cost, calculating if it fits in your budget and researching better alternatives that provide more optimal long-term value.
Learning to Live on Less When Times Are Tough
When you’re used to living on less and commit to buying less stuff, you’ll feel less of a shock if you suddenly lose your job or if your income is reduced. When you aren’t stressed out about money, you’ll be able to focus on other things such as tending to family, upgrading your skills and maybe even taking on a side hustle or job.
Clarifying the Difference Between Cheap Living and Being Cheap
One very important note: living on the cheap is completely different than being cheap. Living on the cheap means being frugal – smart with your finances. Frugal people consider the long-term value of what they’re buying. For example, a frugal person is happy to buy a higher quality set of pots and pans costing $100 that will last them 10 years as opposed to a cheap version at a discount store that will wear out in 2 years and costs $50. Why? That person knows they’ll need to replace the item 4 or 5 times over the course of 2 years.
How to Successfully Frame Your Mindset to Embrace Cheap Ways to Live
Make Adjustments to Your Saving and Spending Habits
The number one way to be frugal is the most obvious one: make immediate adjustments to your budget. Take some time to pull out your bank statements. Grab a notebook and pen. Write down every single expense and transaction you made over the last month. If you’re feeling up to it, do this activity for the past 3 months – it’ll give you a more accurate picture of your long-term spending habits.
Be Flexible to Alternative, Cheap Ways to Live
Frugality requires flexibility. When you have money and other resources at your disposal, you can just buy whatever is most convenient to you without looking at the price tag. Even if you aren’t broke, being frugal teaches you flexibility as you’ll need to find cheaper ways to do things without cutting corners.
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Get Creative with Cheap Ways to Live
Being frugal and thrifty requires creativity. Instead of buying a dress for a formal event, can you rent one? Can you repurpose an old t-shirt and turn it into a tote bag? Rather than going out for a formal dinner, can you and your friends do a potluck or each bring an appetizer, drink and small meal to share at one of your homes? A little bit of brainstorming different ways you can save money goes a long way.
Part 1: Alternative Living Options
Exploring Alternative Living
Grow up, move out of the home, get your own place. That’s how most people do it – at least, in Western countries. However, did you know that in other parts of the world (such as East Asia), children live with their parents – sometimes even after they’re married? While many people look down on those who live with their parents over the age of 25, there are many benefits to living with family. Even if you can’t live with family, think about other creative ways you can save money. Below, I’ll highlight the top seven ways to cut down on housing costs.
Considerations Before Changing Your Living Situation
While it’s exciting to think about how much money you could save by changing your housing situation, consider a few important factors first. Ask yourself the following questions:
- “If I downgrade from a 2 bedroom condo to a 1 bedroom one, will I still be able to get work done from home?”
- “Will my mental health suffer if I move in with roommates/my family?”
- “Are the potential savings from downgrading or changing my housing situation worth it?”
Alternative Living Options Instead of Getting a Mortgage
Downsizing Your Home
Take an evening to sit down and think about whether or not you really need all that space in your house or condo. Can you downsize from a four-bedroom house to a two-bedroom one? Do you need a two-bedroom condo – or can you get away with just one bedroom?
House Hacking with a Duplex
If you’re in a situation where you can purchase an investment property, consider buying a duplex. Live in one unit and rent out the other half.
Living with Family
While not ideal for many, living with family is a simple way to cut down housing costs by 50% or more. If you’re going to be living with family, offer to pay a portion of the rent that’s fair given the current housing market in your area. At the very least, offer to chip in a little extra for chores and housekeeping.
Finding Roommates
Roommates aren’t for everyone – there’s less privacy and you’ll need to negotiate cleaning schedules, storage allocation and more. However, if you are flexible and open to it, consider getting a roommate. Even having one roommate to split an apartment with can cut your housing expenses down by 30-50%.
Working and Traveling
If you are open to a remote lifestyle, consider trading a few hours of your day for free accommodation. Websites such as Workaway match you with singles, couples and families who need help with daily tasks such as childcare, errands and renovation projects. Even if you don’t want to travel far, consider projects in your town or state.
Taking on House Sitting
In addition to options such as Workaway, consider house sitting. Many people go away on vacation or work assignments for extended periods of time and need someone to watch their pets, water plants, and do other basic housekeeping tasks. You’ll take on basic tasks for them and will get a free place to stay! Sign up on a platform such as TrustedHousesitters. If you’re new to house sitting, watch friends’ homes and get positive reviews from them.
Part 2: Cheap and Frugal Shopping Tips
Plan Your Shopping Ahead of Time
Creating a list and sticking to it when you shop can save you hundreds of dollars Before you go the mall or grocery store, know exactly what you’re going to spend your hard-earned cash on and why.
Avoid Wasteful Spending
Plan ahead of time and avoid wasteful spending. Anything from bringing a reusable water bottle to eating before you go to the grocery store can help you save money. Commit to never buying something unless you’ve consciously budgeted for it.
Value Quality Products and Services that Last
Spending money to save money. It may seem counter-intuitive, but paying more for a quality clothing item or an accountant to do your taxes can pay off big in the long run. Even something as basic as paying for a 10-year passport instead of a 5-year one will save you money in the long run – that is, if you travel enough for it to be worth paying for.
Take some time to write down every single product or service you need to buy in the next month. Ask yourself:
“Am I getting the most value out of the current shop or store I get this product at?”
If the answer is “no,” consider shopping around and finding a higher-quality service provider.
Choose Inexpensive, Quality Self Care Routines
According to Statista, the global self-care market is projected to reach approximately $1.67 trillion by 2025. Many argue that self-care is overrated. I disagree. When you take care of your mental health and integrate a simple weekly ritual into your routine, you’ll feel good about yourself. Personally, my biweekly treatment at the nail salon and twice-weekly face mask routine keep me energized and ready to take on my daily tasks – including practicing frugal living.
Check your local drugstore and grocery store for any products that are on sale. If you can afford it, stock up on items that are on sale.
Part 3: Other Creative, Frugal Ways to Live
Commit to Low-Cost or Free Educational Opportunities
When you think about living on the cheap, I’m sure you think about saving money. That’s a major part of it, but so is finding ways to increase your income! One major way for you to increase your income: gain in-demand skills that command a higher hourly rate of pay, contract fee or salary.
“But wait! I don’t have any money!” I hear you say. Guess what? There are so many ways to upgrade your skills without shelling out thousands of dollars. Many platforms such as Udemy allow you to take courses for well under $100. I’m currently taking a Vietnamese language course that was on sale for only $15! Set your email alerts up and check Udemy, Coursera and other platforms for low-cost or free courses in coding, technical writing and other in-demand skills.
Choose Experiences Over Physical Things
In my opinion, experiences are better than physical possessions. When you get older, you won’t remember that expensive perfume bottle your mom gifted you – instead, you’ll remember those times spent laughing with family on the back porch at your grandparents’ home in the summer, enjoying coffee and snacks.
Take some time to think about 3-5 simple pleasures or experiences you can engage in rather than spending money. Cheap ways to live aren’t limited to cutting costs: think about a low-cost activity you can do. For example, instead of going out for dinner, plan and shop for a picnic lunch.
Additional Resources on Cheap Ways to Live
- Being Frugal and Thrifty article by Frugal Fun Finance
- Being Cheap vs. Being Frugal article by Frugal Fun Finance
- Signs of a Cheap Person and How to Avoid Being One article by Frugal Fun Finance
- Frugal Living Comprehensive Guide by NerdWallet
- The Cheapskate Guide: 50 Tips for Frugal Living by Zenhabits
- Extremely Frugal Ways to Live article by Little House Living
A Final Word on Cheap Ways to Live
There are many different creative, cheap ways to live that will help you get ahead with your finances, appreciate what you already have and help you enjoy life’s simple pleasures. Even a couple new, positive financial habits will help you in the long run. Have fun finding fun ways to live cheap!
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Janita is a frugal living expert and owner of Frugal Fun Finance. With over five years of personal experience finding and trying out the best ways to make and save more money, she's eager to share her knowledge. Janita's strategies have helped her save thousands of dollars for funding investments and traveling to over 20 countries.
Janita completed training in personal finance at The University of Western Ontario and McGill University, two prestigious Canadian universities. Her expertise has been shared on GoBankingRates, Yahoo Finance, and NASDAQ.com.
