Feeling tired about having zero savings left in your bank account at the end of the month? In this article, I’ll go over the cheapest ways to live and be frugal. The tips I’ll touch on in this article have saved me thousands of dollars over the past four years. In addition to saving money, by engaging in the simpler things instead of spending money, I’ve become more appreciative of what I already have and have reduced my decision fatigue surrounding everyday purchases.
Read on to learn about the cheapest ways to live.
How Applying the Cheapest Ways to Live Benefits You
Before I get into the top ways to live cheap, why should you undertake these steps? Aside from saving money, there are several reasons why you should try out these frugal living tips:
Free Up Savings for Other Financial Goals
The first and most obvious tip: when you live cheap, you’ll save money! That’s great and all, but you shouldn’t be blindly saving money. Instead, you should have an end goal in mind. Where is the money you’ve saved going to be redirected to? If you’re feeling stuck, here are some ideas:
Remember: I am not a financial professional. Before making a major decision such as opening a new investment account or changing your financial strategy, be sure to consult a financial planner or other professional.
- Paying down or paying off student loan, credit card or mortgage debt
- Building or stocking up your emergency savings account
- Saving for a short-term goal such as a family vacation or new phone
- Investing in your or your child’s education or a retirement account
Try Out New Recipes
No list of the cheapest ways to live is complete without tips on frugal meal planning, grocery shopping and cooking. When you reevaluate how much money you spend on groceries and what you cook, you’ll be forced to get creative. Instead of going for that package of salmon, why not try a plant-based meat alternative and experiment with spices?
Get Creative with Entertainment Options
Living super cheap means that you’ll need to cut back on or cut out entertainment expenses. Instead of going out to the movies or for cocktails at the local haunt, try out cheaper ways to have fun. Anything from a craft night in, creating and stocking a capsule wardrobe through running a clothing swap, doing a movie night in or another fun activity is a great way to try something new.
Have Fun Trying Out Alternative Living Options
In addition to having fun trying out different frugal ways to have fun, a major way you can live cheap is re-evaluating your housing situation. When you do short term or long-term housesitting, you’ll have the chance to live in properties you otherwise would never have the chance to live in. Living in a villa on the beach for three months in exchange for casual tasks such as gardening and tending to pets? Sounds like a deal to me!
The Best and Cheapest Ways to Live
Without further ado, here are the top cheapest ways to live. Start with one or two practices and slowly integrate more into your daily lifestyle. Let’s get into it.
Getting Clothes for Free is One of the Best Cheapest Ways to Live
Clothing is a huge expense for everyone. In 2022, the average American spent $1945 USD on apparel. That’s an average of just over $162 a month! While this may not seem like a huge sum, why not try and reduce this expense? There are many different ways to get clothing for cheap or for free. Here are my top two ways to get clothing on the cheap:
Always Go to the Thrift Store First
Before you go to the mall, check out your local secondhand shops first! Many thrift stores carry brand name clothing at a fraction of the cost of retail. While buying brand name isn’t always necessary, more expensive clothing is often higher quality. This means that in the long run, you’ll end up spending less. How? The cost per wear is lower. Think about it. If you buy a cheap pair of $30 shoes that wear out every year, over the course of 5 years, you’ll have spent a total of $150 replacing the shoes. On the other hand, if you bite the bullet and invest in a pair of quality $100 shoes, you’ll have saved $100 in 5 years.
In addition to saving cash, you’re saving time. You’ll only have to visit the store once instead of five times. Plus, higher quality clothing and shoes simply look better. Your wallet and ego will thank you!
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Arrange or Attend a Clothing Swap
If you’re feeling up to it, a clothing swap is a fun way to get rid of old clothing you don’t wear anymore and find new digs for free (with the exception of transportation costs and giving up your old belongings). Set up an event on Facebook Marketplace or see about putting up flyers at your local community center. Attending a clothing swap is also a great way to meet new people while stocking up a capsule wardrobe or finding some specialty pieces to jazz up your closet. Ever heard of the phrase ‘Your network is your net worth’? When you meet new people, you’ll have an opportunity to chat with them and learn about what they’re all about. Swap stories about family, travel and work. Maybe your connection will parlay into friendship or a new job or side hustle opportunity! You never know.
Exchange Clothing with Family or Friends
Not feeling up to creating and running a community event? No worries… keep it within your family or friend group. Set up a time where your friends and family visit your home for a couple of hours. Make it a bigger affair with a barbeque and snacks. Why not add in some games, too?
Planning Meals, Shopping and Cooking Frugal
Another one of the top cheapest ways to live is doing a serious reevaluation and adjustment of how you plan for, shop and prepare your breakfasts, lunches and dinners. While grocery shopping is a fixed and non-negotiable aspect of our lives, it’s a place where many of us tend to overspend. Without meal planning and bringing a list to the store, it’s easy to just throw that extra bag of chips into your cart. Over time, it’s easy to spend a lot more than you originally intended. Here’s a step-by-step process on how to go about frugal grocery shopping and cooking:
Step 1: Use What You Already Have
It’s exciting to plan meals and go straight to the grocery store. Hold on a minute, though! If you’re truly looking to be frugal, you should use what you already have. Check your pantry, fridge and freezer to find any leftovers you have that can be put to good use. Next, go through your cupboards and freezer. Dig out those frozen vegetables you haven’t touched yet and find a recipe to use them with. Each year, Americans waste between 30 to 40 percent of the total food supply. Fight food waste by using what you already have! In addition to contributing to sustainability, you’ll save money and time by not having to shop for as many ingredients at the store.
Another quick and easy way to use what you already have: keep your shelves organized by expiry date. Pull the oldest items that are closest to their expiry date and ensure they’re at the front of your cupboards, fridge, freezer and other storage units. Place the newest items at the back. This way, you won’t spend time digging through your cupboards and checking the expiry date for each item.
Step 2: Always Meal Plan
“Fail to plan, plan to fail!” When you don’t have a course of action for what you’re going to eat in the upcoming days, it’s a lot easier to get off track with your goals. Think about it. At the end of a long day of work and tending to other personal responsibilities, it’s easy to hit the ‘Order’ button on your favorite delivery app or swing by the local Chinese takeout joint. While there’s nothing wrong with a treat or two every once in a while, $30, $50 or more twice a week or more can really add up.
Creating a meal plan will prevent impulsive choices. Remember: just because you’re meal planning doesn’t mean you can’t cook special dishes that you love. As an alternative to your weekly order of pad thai and spring rolls, make your own. Search for a copycat of your favorite takeout dish online such as this one. Have fun researching and finding a new favorite to cook up!
Step 3: Compare Prices and Hit Up the Stores
After meal planning, it’s time to head to the grocery store. Before you go, be sure to use an app like Flipp to compare the prices of specific items at different grocery stores. Those who have a vehicle can take advantage of different prices at grocery stores within a couple miles of each other.
Step 4: Undertake Meal Prepping for the Week
After you’ve gathered your ingredients, set aside a few hours on a specific day of the week to meal prep. When you choose the same time of day or week, you’ll be a lot more likely to keep on track with good habits. Invest in some quality food storage containers and cutlery that will last.
Housesitting
Rent or mortgage and other expenses take up a huge portion of everyone’s income. In 2022, the average household spent $2025 per month on housing expenses. While housing is a nonnegotiable expense, there are ways to cut down on costs.
Housesitting is one of the easiest ways to get started with reducing your living costs, at least on a temporary basis. Housesitting falls into two categories: short term and long term. Short term house sitting generally means you’ll watch someone’s home for less than six months at a time. Long term house sitting, when someone watches someone’s home for 6 months or longer, is a popular way to live in new places, take care of animals and plans and save money on housing expenses.
What Types of Duties are Housesitters Responsible For?
When housesitting, you’ll be responsible for one or several different duties. These duties and chores may range from checking the mail, feeding a cat, walking the dog, watering plants, ensuring the house is secure and more.
How Do I Get Started with Housesitting?
Get started with house sitting by setting up an account on a platform such as Trusted Housesitters or a similar platform. If you’re new to house sitting, get some practice watching a neighbor or friend’s home. Ask them to create an account on Trusted Housesitters. After you’ve finished your duties, ask them to leave a review. After you’ve received a few positive reviews, your profile will look a lot stronger to strangers.
While house sitting isn’t for everyone, it’s a money-saving option you should strongly consider and one of the top cheapest ways to live!
Engaging in Simple Pleasures
Frugal living ideas and strategies aren’t just limited to cutting costs. Aside from practical measures such as adjusting your grocery shopping, dining and housing habits, becoming more mindful of your daily activities can help you live frugal without feeling you’re cutting corners. In today’s modern society, we are bombarded with consumerism. According to the modern world, spending is the way to achieve true happiness. However, there are many ways to stay happy and enjoy life while spending little to no money.
On a weekday evening, take some time to write down all the things and experiences that make you happy. Start with small things such as the smell of your fresh cup of coffee in the morning, the sunlight pouring through the blinds or the sound of your son’s laughter. After you’ve compiled your list, choose one simple pleasure to intentionally enjoy in the upcoming week. Each week, try focusing on one new simple pleasure. Before you know it, your life will be full of activities and experiences that cost little to nothing!
Trying a Low Spend or No Spend Challenge
The final tip on this list of the cheapest ways to live: a low spend or no spend challenge. A low spend challenge means that you’ll be significantly reducing spending on non-essential purchases for one or more categories in your life such as takeout or clothing. Start with a low spend challenge for one month. Cut out spending by 70% or so. After you’ve done a low spend challenge, why not do a no spend month where you cut out all non-essential spending for one month?
In my experience, a low buy month has not only helped me save over $2000 on stuff I don’t need, but it’s made me much happier. When I can’t spend money on my favorite takeout dish, I’ve learned how to shop for and cook new dishes. While I haven’t loved every single dish I’ve cooked, it’s allowed me to try a bunch of new foods.
Cheap vs. Frugal When Practicing Different Cheapest Ways to Live
While I’ve covered many cheap ways to live, it’s important to avoid taking your frugal practices too far. There is a difference between being cheap vs frugal. A frugal person integrates ways to live cheap without hurting others, themselves or their reputation. For example, a cheap person may skip out on all social events, even if it means they hurt relationships in the long run. On the other hand, a frugal person will find ways to save money without cutting corners. This might mean minimizing the number of times spent dining at restaurants, doing dinner parties at home and finding restaurants with lunch or dinner specials. A frugal person is smart with their money, while a cheap person fears spending any money at all. The difference between cheap and frugal is subtle yet distinct!
A Final Word on the Cheapest Ways to Live
I hope that this guide to the cheapest ways to live will help you save money for your future, become more appreciative of what you already have and become more focused on your family and friends. Try out one or two different strategies. After you’ve mastered budget cooking, move on to house sitting or another frugal living hack. Enjoy living frugal!
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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.
