Being able to pay off your debt, pay down your first house deposit, or travel to your favorite destination seems unachievable, especially when living from paycheck to paycheck. Interestingly, you may be surprised that you can achieve all your financial goals if you eliminate or reduce some of your expenses. The good news is that you can still live cheaply and enjoy life simultaneously.
Here are the 13 greatest tips for living as cheaply as possible.
Use a Budget to Track Your Spending and Cut Down on Unnecessary Expenses
Living cheaply doesn’t necessarily mean getting rid of all expenses, but learning to use the available resources to live within your means. A budget lets you track your spending and set limits for each expense. Working with a budget also establishes areas where you may be overspending or underspending, making it easier to adjust accordingly.
Read More: How To Use the Cash Envelope System To Budget Your Money Effectively
Shop for Groceries and Plan Your Meals Weekly
Food is most households’ third most significant expense after housing and transportation. You can cut down on grocery shopping by visiting the local farmer’s market and stocking up when groceries are at their lowest prices in stores.
Using coupons and discount codes online is a great way to stretch your dollar. Simply load up coupons before you go shopping. Sites like coupons, co, checkout 51, and Ibotta are excellent apps that offer cash back on specific purchases. Shopping for groceries and having a weekly meal plan will help you reduce food waste and save money.
Shop at Thrift and Second Hand Stores First
You can stretch your dollars by purchasing used items before buying new ones. While there are items you’d prefer to buy new, it makes sense to purchase second-hand in some categories. Shop at online marketplaces, consignment shops, or thrift stores. Most places offer great discounts on clothing, furniture, electronics, toys, etc.
Embrace a Minimalist Lifestyle
Adopting a minimalist lifestyle allows you to focus on utilizing only what you need. You can implement a minimalist lifestyle by decluttering your physical space, transitioning to a capsule wardrobe, and being mindful of your purchases by determining whether the item bought fits your life and is necessary.
Embracing a minimalistic lifestyle may relieve anxiety and save you money as you avoid making unnecessary purchases.
Avoid Shopping Without a Purpose
Refrain from the urge to go shopping just to go out. Focus on shopping with a purpose by planning your shopping trip with a list and budget in mind. You also need to determine your priorities. Decide whether you’re okay settling for a deal or you would rather pay more for a quality product that lasts long.
Shopping with a purpose saves you money and allows you to live as cheaply as possible.
Practice the 30-Day Rule to Curb Impulse Purchases.
The 30-day rule stipulates that you can only purchase something you find exciting or on sale once the period ends. That excludes necessities. You can include other items on your wish list and wait until the period has lapsed to determine if you still need the item. You’ll often find that the urge to own the item disappears after this period, which helps you save money.
Use Cash More Often
Cash payments ensure fewer impulse purchases and allow you to stick to a budget or list. That could save you hundreds of dollars monthly as you don’t have the convenience of overspending like you would with a credit card.
Using cash also helps keep your debt in check and avoid additional fees associated with credit cards, like balance transfer fees, annual fees, or late payment fees.
Consider Alternative Modes of Transportation
Paying for parking fees, gas, and maintenance regularly can be expensive. Consider commuting by bike to save gas. You could also arrange a carpool with your friends or take public transportation to work.
Choose Low-Cost Experiences With Friends and Family
Hosting your friends for dinner at a restaurant weekly or going on expensive staycations may be unsustainable if you’re struggling financially. Find free and fun activities to do with your friends and family to save money.
Hosting a board game night, playing video games, exploring the local library, baking, hosting dinners at home, hiking, having a park picnic, and attending a free music concert are low-cost experiences you could enjoy with your friends.
Travel During Shoulder Season
Being strategic when traveling can help you cut costs and enjoy your life. Traveling during the shoulder season is affordable and allows you to deal with fewer crowds, making your experience more enjoyable and peaceful. The weather is still good at this time. Also, reservations are more manageable, and you can get more personalized service.
Move to a Cheaper Neighborhood
Living in an urban suburb may provide easy access to amenities and other conveniences, but it could be expensive in the long term. Moving to a cheaper neighborhood can help you save money. Consider things like transportation costs, insurance rates, childcare costs, and taxes to determine if the move will be a good idea.
Negotiate on Some Monthly Bills
Sometimes, eliminating insurance, internet, cell phone, and TV is not sustainable. Consider negotiating for better rates with your existing service providers to get a cheaper rate. Some companies are willing to provide lower rates to long-term clients. However, if your current company isn’t on board with the idea, talk to other companies offering lower rates.
Pack Your Lunch and Coffee To Work
Going out for lunch every workday or stopping by Starbucks daily may seem like a small deal, but it could cost you hundreds of dollars annually. Avoid eating out as much and instead bring your homemade lunch to work. You could prepare an easy-to-go snack like a high-protein sandwich or a yogurt/fruit parfait.
Alternatively, you could pack dinner leftovers for a convenient lunch.
Financial Freedom
Defining what financial freedom means to you is essential as it helps you make sound decisions. With the above tips, you can learn to live cheaply to achieve your desired financial freedom and goals.
