There’s a huge difference between being cheap and frugal.
The term “cheapskate” has a negative connotation, meaning the person will do anything to avoid spending a buck. Frugal folks, on the other hand, are quite savvy about getting more out of their money.
Frugal living is about prioritizing spending to ensure you cover the costs of what you need and can set goals to buy what you want eventually. With increased living costs, frugality is more important than ever.
Several small changes can add up to a big amount over time. Here’s how to be frugal without major lifestyle changes.
1. Practice the “30-Day Rule”
Have you ever made a major – or even minor – purchase on a whim? That can be anything from as big as buying a new gadget because you saw a sale to as small as grabbing the latest Starbucks holiday latte.
Impulse spending is a common occurrence that, if left unchecked, can be disastrous for your finances.
The Harris Poll commissioned a recent survey of more than 2,000 Americans. The survey found that “22% of Americans have made impulse purchases that significantly impacted their finances in the past 12 months.”
Delay purchases for 30 days on nonessential items. The “30-Day Rule” helps you avoid impulsive buys, giving you more time to think about whether you truly need something or if it’s just a want. When you do buy, make the most of your spending by accessing rebates.
Pro Tip: When shopping online, get 3-15% cash back with easy-to-use rebate services like Capital One Shopping or Rakuten.
2. Bring your lunch to work
It’s no secret that food prices have dramatically increased in recent years. The BLS’s Consumer Price Index reports that food prices have increased by a whopping 28% since 2019.
You have to eat but don’t always have to dine out.
Purchasing meals from restaurants every day quickly adds up to hundreds of dollars spent each month. You can control your food budget by creating a grocery list, shopping for your own food, and preparing meals in advance.
Meal prepping lunches for work alone can save you an average of $5-$7 per day. The typical U.S. job has 260 workdays per year, so do the math, and the savings add up quickly.
Pro Tip: Earn as much as possible on your emergency savings. For example, SoFi Checking is offering 4% interest, plus a potential $300 signup bonus. (May change without notice.)
3. Use cashback
Cashback apps offer rebates and rewards on your daily purchases. Apps such as Rakuten and Cash App allow you to shop through their platforms and receive cashback on eligible purchases.
Depending on the cashback apps you use, it’s possible to save $10 to $20 per month. But cashback doesn’t have to stop with apps. You can earn between 1% and 5% on purchases with the right rewards credit cards.
It’s never wise to go into debt to earn cashback. But if you’re using that plastic like a debit card, the credit card companies will pay you for everyday purchases.
Pro Tip: When you spend on anything, always pay with a top-ranked cash-back card.
4. Utilize public libraries
Libraries offer free access to books, movies, audiobooks, and digital resources like e-books and online courses. Many libraries also host free community events and workshops, providing entertainment and education without any cost.
Are you interested in a new exercise or yoga course? Believe it or not, many public libraries offer such courses for free. Public libraries also offer free events like storytime readings for young children.
The best part of using public libraries is your access card is usually free. Check out the public library in your community. You’ll likely need proof of residence to get a library card and access to all its entertainment and resources.
5. Declutter and sell unwanted items
Selling unused and unwanted items can generate quick funds while reducing physical and mental clutter. This simple, frugal step can do more than save you money — it may even earn you some extra cash.
Depending on what you’re selling and how much can determine how much. Selling unused items can earn you anywhere from a couple of bucks to a few hundred dollars. Consider planning a yard sale and advertising in your neighborhood’s Facebook group, on Craigslist, or Nextdoor. You can also sell your unwanted items on eBay or Facebook Marketplace.
As you gain supplemental income from sales, automate the process of saving a portion of each windfall.
Pro Tip: Acorns helps you save, invest, and grow for your future. Their automated saving, investing, and spending tools help you grow your money and your financial wellness.
Reap the benefits of frugality
By blindly succumbing to consumerism, you fail to maximize the value of your dollars — the hard-earned cash for which you sacrifice your time and energy. There are better and more rewarding things that deserve your resources, whether that’s more time, money, or energy.
By embracing a frugal mindset, you can own your life and the pace at which you live it, free from the pressures of standard consumerist ideals. If someone calls you “cheap,” remind them you’re just being frugal.
