Finding ways to save money without giving up your quality of life is more important than ever. With skyrocketing grocery and gas prices, higher interest rates, and inflation in general, many people are looking for ways to cut spending and still maintain the quality of life they're accustomed to.
With a few strategies, you can live well on less and, at the same time, be more intentional about where your money goes.
Evaluate Your Spending Habits
The first step to cutting costs is understanding how and where you are spending money. The key to living frugally is knowing where your money is going so you can identify where to make small adjustments that can lead to significant savings.
Track Your Expenses
Track your daily, weekly and monthly expenses. You can do this manually by keeping receipts or using a spreadsheet. You can also use budgeting tools such as Mint, YNAB or PocketGuard to make the process even easier. These tools categorize your spending automatically, which gives you a detailed breakdown of your expenses.
Once you have the data, you can see where you are spending the most money, whether it's groceries, dining out, entertainment or utilities. When you review your spending habits, you can make better decisions about where to cut back.
Identify Non-Essential Expenses
After tracking your expenses, you can look for non-essential items that are draining your budget, such as:
- Daily coffee shop runs
- Streaming services
- Unused subscriptions
These indulgences might seem small since they are "only" a small amount every day, but they add up over time. However, if you spend $10 per day on that coffee run, that's $310 per month or $3,650 per year if you miss a couple of days.
By cutting back on non-essentials or finding more affordable alternatives, you can free up a significant amount of money without negatively impacting your lifestyle.
Smart Shopping Techniques
One of the most effective ways to save money without sacrificing quality is to shop wisely. By being strategic about how and when you buy groceries, you can cut significant costs while still enjoying the products you need.
Coupons and Discounts
One of the easiest ways to save money is to cut coupons and look for discounts. Join sites such as Honey to get online discounts. Many retailers also have loyalty programs or newsletters that offer exclusive deals to subscribers. You can also sign up for scanning apps, such as Fetch. Scan your receipts into the app and receive points you can trade for gift cards to hundreds of retailers.
While it takes a little extra time to find coupons and discounts, the savings can add up over time, making your purchases more affordable.
Buy in Bulk
Many items, including toiletries, pantry items and household staples, tend to be less expensive per unit when you buy in bulk. Sam's Club, Costco and other warehouses offer food in bulk, but you do have to watch the prices of some items. You can also find bulk deals on Amazon.
Shop Sales
Check grocery store ads every week, even if you don't shop every week. Look for sales on items that you can stock up on, such as pasta, rice, certain fruit (freeze it), frozen vegetables, canned goods, meat and more. Depending on how much "extra" money you have that week, you can purchase two or three extra and build up your stock over time or purchase a case of something.
If you have a large freezer, you can stock up on pork, beef, chicken and fish. Always rewrap meat in a few layers of plastic wrap and then in freezer paper or foil so it lasts longer than six months in the freezer.
DIY Whenever Possible
One of the best ways to cut costs is to do things yourself. With a bit of effort and some tutorials, you can save money by not hiring someone to do something you can do.
Home Repairs
When you hire a professional for small home repairs, it adds up quickly. However, you can make many small repairs on your own. Whether it's patching a hole, replacing a faucet or fixing a squeaky door, you can find tutorials online to take you through the steps.
Meal Prep
One of the easiest ways to cut spending is to prepare meals at home instead of eating out. When you cook at home, you get to control the portions, ingredients and nutritional value of your meals. You can maximize savings by cooking large quantities and freezing them. For example, if you make a casserole, and it's just you or you and your spouse, make that big casserole. When it cools, portion it into freezer-safe containers with enough for a meal. You may have three or four meals already prepped, plus the meal you'll eat from the casserole on the day you make it.
You can do the same with slow cooker meals – buy that big Boston Butt when it goes on sale and put it in the freezer. When you're ready, put it in the slow cooker. Once it's done, you can eat what you want for a meal, then freeze the rest of it. You can make many things with a huge pork roast (beef, too!), including:
- BBQ
- Hot open sandwiches
- Cold sandwiches
- Add some of the meat to other dishes, such as soups and casseroles
Embrace Energy Efficiency
You can save on your energy bills in several ways:
- Turn off lights and appliances that are not in use.
- Unplug devices when you are not using them. Even when you are not using something, but it's plugged in, it uses a bit of electricity.
- As the light bulbs burn out in your home, switch to LED lighting.
- Set your thermostat at no lower than 77 during the summer and no higher than 75 during the cooler months. If you can handle cooler inside temperatures during cooler months, set the thermostat even lower than 75.
- Turn the breaker for the hot water heater off. About 20 minutes prior to using hot water, turn it on to give it time for the water to come up to temperature – it stays warm for a couple of days without power but will only be warm enough for a warm, not hot, shower.
Rethink Transportation
You can decrease gas and maintenance costs by carpooling with friends to go to work or even to go to the grocery store. If you live close to work, biking or walking to work on nice days can help save money.
Finally, keep your vehicle maintained. That tune-up, oil change, and other maintenance keeps your vehicle running efficiently. The less efficient it is, the more fuel you'll use, whether you have a diesel, gas, hybrid or electric vehicle.
Cut Entertainment Costs
You can easily cut entertainment costs by exploring local parks, attending free events and taking part in community activities, which may have a small free if they're not free. Obtaining a library membership gives you free access to books, movies, and audiobooks. Rotate streaming services or use free alternatives such as YouTube.
Visit The Simple Riches
You can save a little money here and there, but it all adds up! Keeping a budget also helps. Instead of looking at a frugal lifestyle as a sacrifice, look at it positively. You'll save more money and, in many cases, your life will be much better.
Share your frugal tips in the comments to help others!
Comments