Frugal Living Comprehensive Guide: 37 Ways to Find Serious Savings - NerdWallet (2024)

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Frugal living isn’t about being cheap; it’s about being resourceful.

It’s finding ways to save where you can — whether via coupons, freebies or DIY hacks — so you can focus your money and attention on the things you value, whether that’s saving for a comfortable retirement, traveling or living a debt-free life.

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Frugal food tips

Cooking, and even growing, your own food can help you stretch your budget. And simple tricks like splitting entrees or hitting happy-hour specials can help you dine out on a dime.

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  • Plan your meals in advance. Last-minute eating decisions often lead to more expensive "I'm hungry now" splurges.

  • Opt for less expensive cuts of meat. Make economical substitutions and search online for "meatless recipes" or "ways to use less meat."

  • Buy store brands and generic labels. Generics can be comparable in quality to brand names and cost much less.

  • Compare unit prices, such as the price per ounce or pound. These are often shown on the price labels on grocery store shelves, or you can use a mobile app to calculate. Then you can determine the true savings and not fall for a "discount" pricing tactic that might be misleading.

  • Eat out less. Trim home meal deliveries, too. For inspiration, check last month's spending on restaurants and food delivery services. They can add up quickly.

  • Keep an eye on your pantry and use up stockpiled supplies before they expire.

  • Buy a water filter or filtered pitcher rather than bottled water. That means fewer plastic bottles in the environment and more money in your savings account.

  • Grow your own herbs and vegetables. It gets you outside and active, and is as close as "farm to table" as it gets.

  • Learn more ways to save money on groceries.

Coupons, deals and freebies are your friends. You can use them to save money on things you were going to buy anyway — a tenet of frugal living. But use them mindfully, rather than as an excuse to spend on something you don’t actually need.

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  • Stick to a list and take other steps to avoid impulse buying. Spur-of-the-moment purchases can be expensive and are often regretted later.

  • Hit up thrift and consignment stores. It's often surprising the quality — and the name brands — you'll find on sale for pennies on the dollar.

  • Browse in-person and online garage and rummage sales.

  • Join a local clothing swap or monitor buy-sell-trade groups in your area on social media.

  • Download a free coupon app. The days of clipping paper discounts are long gone. Now your phone will use your location to identify deals near you.

  • Similarly, use a browser extension to find deals when shopping online.

  • Stock up on nonperishable items when they're on sale — or snag bulk discounts at a wholesale club.

  • Consider a once-a-month no-spend weekend. Hunting down free-entry festivals and not-far-from-your-neighborhood events is half the fun.

  • Take the Amazon app as well as any other shopping apps you use often off your phone. Eliminating browse-and-buy habits that you might slip into during your spare time will encourage more intentional spending.

  • Know the best month to buy what you're looking for. Favorable product pricing really can follow seasonal trends.

  • Buy clothes at the end of — or out of — the season.

  • Find more shopping and couponing tips.

Before you build a budget

NerdWallet breaks down your spending and shows you ways to save.

SEE YOUR SPENDING

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Frugal entertainment tips

Free, fun things to do are all around. Date night? See a free concert or pack a picnic and head to the park. Family outing? Go for a bike ride, volunteer together or check out a museum that offers free admission.

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  • Take advantage of free days at museums and national parks. Some state parks also feature times when visitor fees are waived.

  • Have a family game night. Some libraries offer board games and video games you can check out, so you can try something new without buying it outright.

  • Check out books, movies, magazines and DVDs from your local library.

  • Consider creating a parents-night-out swap with trusted friends, where you take turns babysitting each other's kids.

  • Use credit card rewards to score free flights, car rentals and hotel stays.

  • Find more free or cheap activities.

Frugal DIY project tips

You typically have two options when you need a product: buy it or make it yourself. Although heading to the store (or a shopping app) is convenient, DIY is often cheaper. But that does require another type of investment — time.

A little craftiness can also make the items you own last longer. Free online tutorials and community classes can teach you to mend everything from clothing to small appliances.

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  • Create your own beauty products, like deodorant, face masks and dry shampoo. You can find many recipes online that use simple pantry staples, such as honey and raw sugar for a lip scrub or baking soda and cornstarch for dry shampoo.

  • Look for a local tool "lending library" or a place to rent tools and equipment, rather than buying something you need only rarely.

  • Make household cleaning products, such as stain remover, window cleaner and laundry detergent, at home. Use your judgment, though, and follow common rules like never mixing bleach with other cleaners such as ammonia.

  • Pull out a needle and thread to repair and tailor your clothing.

  • Barter services with neighbors and friends. For example, you mow their lawn and they fix your plumbing.

Frugal home expenses tips

Before you call the handyman, consult YouTube. There, you can learn how to do tasks as varied as fixing a leaky faucet or remodeling your bathroom. Getting frugal at home can also mean examining your monthly bills for ways to save on electricity, water, cable and even your cell phone.

The more you save on those expenses, the more you can spend on (or save for) what's important to you.

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  • Save on your cell phone bill by asking your carrier for a better deal on a regular basis. Then shop the competition before recommitting to be sure your new renegotiated package is still your best choice.

  • Review the streaming services you pay for to see if you could cut some or choose more economical plans. Look for any discounts you may qualify for, such as a student rate, AAA or senior discount, etc.

  • Get free TV with a digital antenna.

  • Adjust your thermostat and layer up or dress down.

  • Wash your own car.

  • Use gas apps to save on fuel.

  • Try economical updates to your house, such as refreshing your cabinets with new paint and hardware, rather than committing to costly remodeling.

  • Avoid lifestyle creep. That's when your income gradually increases — but so does your spending. If you get a raise, divert it to savings with direct deposit or a scheduled automatic transfer. Think about using windfalls like a tax refund for savings or debt paydown.

  • Discover more ways to save on home expenses.

If you want to start getting a handle on your spending, NerdWallet has compiled the best expense tracking apps based on ratings and popularity among users.

If your situation is even more serious, use our "how to get help paying bills" tool, for go-to resources in various categories. Choose the type of bill you're struggling to pay and find available options for immediate assistance.

Frugal Living Comprehensive Guide: 37 Ways to Find Serious Savings - NerdWallet (2024)

FAQs

What is the 70% rule for saving? ›

The 70% rule for retirement savings says that you can estimate your future retirement spending by multiplying your post-tax income by 70%. For example, if your income is currently $72,000 per year after taxes, your future annual retirement spending would be around $50,400, or $4,200 per month.

What is the savings 30 rule? ›

The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).

Is $20,000 a good amount of savings? ›

Having $20,000 in a savings account is a good starting point if you want to create a sizable emergency fund. When the occasional rainy day comes along, you'll be financially prepared for it. Of course, $20,000 may only go so far if you find yourself in an extreme situation.

What is the 30 day rule? ›

The premise of the 30-day savings rule is straightforward: When faced with the temptation of an impulse purchase, wait 30 days before committing to the buy. During this time, take the opportunity to evaluate the necessity and impact of the purchase on your overall financial goals.

What is Warren Buffett 70 30 rule? ›

A 70/30 portfolio is an investment portfolio where 70% of investment capital is allocated to stocks and 30% to fixed-income securities, primarily bonds.

What is the $1000 a month rule for retirement? ›

One example is the $1,000/month rule. Created by Wes Moss, a Certified Financial Planner, this strategy helps individuals visualize how much savings they should have in retirement. According to Moss, you should plan to have $240,000 saved for every $1,000 of disposable income in retirement.

What is the 80 20 30 rule for savings? ›

It is a simplified version of the 50/30/20 budget. The rule requires that you divide after-tax income into two categories: savings and everything else. As long as 20% of your income is used to pay yourself first, you're free to spend the remaining 80% on needs and wants.

How much savings should I have at 50? ›

By age 50, you'll want to have around six times your salary saved. If you're behind on saving in your 40s and 50s, aim to pay down your debt to free up funds each month. Also, be sure to take advantage of retirement plans and high-interest savings accounts.

What is the 60 20 20 rule for savings? ›

If you have a large amount of debt that you need to pay off, you can modify your percentage-based budget and follow the 60/20/20 rule. Put 60% of your income towards your needs (including debts), 20% towards your wants, and 20% towards your savings.

How many people have $20,000 in savings? ›

Other answers revealed that 15 percent had between $1,000 to $5,000, 10 percent with savings of $5,000 to $10,000, 13 percent boasted $10,000 to $20,000 of cash in their bank accounts while 20 percent had more than $20,000.

How much money does an 80 year old need? ›

Financial planners often recommend replacing about 80% of your pre-retirement income to sustain the same lifestyle after you retire. This means that, if you earn $100,000 per year, you'd aim for at least $80,000 of income (in today's dollars) in retirement.

How much cash is too much in savings? ›

How much is too much savings? Keeping too much of your money in savings could mean missing out on the chance to earn higher returns elsewhere. It's also important to keep FDIC limits in mind. Anything over $250,000 in savings may not be protected in the rare event that your bank fails.

What is the 3 month rule? ›

The three month dating rule is a trial period that allows couples to shift from the honeymoon phase of dating to an integrated love phase. "What I mean by that is usually a few months into dating, we start to see some of the quirks, or maybe we start to notice things that we find annoying or irritating," Pharaon says.

How should a beginner start saving money? ›

5 simple steps to start saving
  1. Set one specific goal. Rather than socking away money into a savings account, set specific goals for your savings. ...
  2. Budget for savings. Just because you decide to save doesn't mean it's going to happen. ...
  3. Make saving automatic. ...
  4. Keep separate accounts. ...
  5. Monitor & watch it grow.

What are the 90 days rule? ›

What is the 90-day rule? The 90-day rule refers to a presumption that a nonimmigrant visa holder made a willful misrepresentation at admission or application for a nonimmigrant visa when that nonimmigrant enters the U.S. and within 90 days engages in conduct that is not allowed with their nonimmigrant status.

How does the 70 rule work? ›

Basically, the rule says real estate investors should pay no more than 70% of a property's after-repair value (ARV) minus the cost of the repairs necessary to renovate the home. The ARV of a property is the amount a home could sell for after flippers renovate it.

What is the rule of 70 in simple terms? ›

The rule of 70 is used to determine the number of years it takes for a variable to double by dividing the number 70 by the variable's growth rate.

What is the rule of 70 and how do you use it? ›

The Rule of 70 is a calculation that determines how many years it takes for an investment to double in value based on a constant rate of return. Investors use this metric to evaluate various investments, including mutual fund returns and the growth rate for a retirement portfolio.

What is Rule 72 in savings? ›

The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. In this case, 18 years.

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