How to Be Frugal: 22 Smart Habits of Money-Savvy Individuals
Living frugally doesn’t mean giving up the things you love; it’s about making smart choices that help you save money while still enjoying life to the fullest.
Thrifty people have mastered the art of managing their finances wisely by adopting practical habits that reduce unnecessary expenses.
From simple grocery shopping tips to mindful budgeting techniques, these habits can help anyone build a more financially stable and stress-free life.
Whether you’re looking to save for a big purchase, reduce debt, or simply live more sustainably, here are 22+ habits of thrifty people that you can start incorporating into your daily routine.
1. Create a Realistic Budget
Thrifty people always know where their money is going by creating and sticking to a realistic budget. They track income, expenses, and savings goals, ensuring they live within their means. A budget helps prioritize spending and avoid impulsive purchases, leading to long-term financial stability.
2. Shop with a List
A shopping list is a simple yet effective tool that prevents unnecessary spending. Thrifty people always go shopping with a list, sticking to what they need rather than succumbing to impulse buys.
This habit not only saves money but also reduces waste and helps avoid clutter.
3. Use Cashback and Reward Programs
Frugal individuals maximize their savings by using cashback and reward programs whenever they shop. They sign up for credit cards or apps that offer rewards on everyday purchases, from groceries to gas.
Over time, these small savings add up, providing extra money for other needs.
4. Cook at Home More Often
Eating out frequently can drain your wallet. Thrifty people save money by cooking meals at home. They plan meals ahead of time, use leftovers creatively, and bulk cook to reduce costs. Cooking at home is not only cheaper but also healthier and more fulfilling.
5. Buy Generic Brands
Instead of splurging on brand-name products, thrifty individuals opt for generic brands, especially for items like groceries, toiletries, and medications.
Generic brands often offer the same quality at a fraction of the price, helping save significant amounts over time.
6. DIY When Possible
Frugal living often involves a do-it-yourself (DIY) approach. Thrifty people make their own household cleaners, repair clothes, and handle minor home repairs themselves.
This habit reduces the need to pay for services and allows them to use resources they already have.
7. Buy Secondhand
Buying secondhand items, from clothing to furniture, is a core habit of thrifty individuals. They frequent thrift stores, online marketplaces, and garage sales to find quality items at reduced prices. This approach is not only economical but also environmentally friendly.
8. Avoid Debt Like the Plague
Debt can be a major drain on finances. Thrifty people avoid debt whenever possible, choosing to save up for purchases rather than relying on credit. If they do use credit, they pay off balances in full each month to avoid interest charges and maintain financial health.
9. Take Advantage of Free Entertainment
Instead of spending money on expensive activities, frugal individuals seek out free or low-cost entertainment options. They enjoy local parks, community events, libraries, and online resources for movies, books, and courses.
This habit keeps costs down while still providing fun and enriching experiences.
10. Practice Delayed Gratification
Thrifty people are masters of delayed gratification. They wait for sales, compare prices, and think carefully before making purchases. This habit prevents impulse buying and ensures that their money is spent on items that truly add value to their lives.
11. Reduce, Reuse, Recycle
The three Rs—Reduce, Reuse, Recycle—are essential to a frugal lifestyle. Thrifty people repurpose items instead of throwing them away, buy reusable products, and recycle to minimize waste.
This practice not only saves money but also helps protect the environment.
12. Negotiate Bills and Contracts
Negotiating bills, contracts, and subscriptions can lead to significant savings. Frugal individuals regularly call service providers to negotiate better rates for phone plans, internet, insurance, and more. A simple phone call can often lead to discounts or promotional offers.
13. Grow Your Own Food
Growing a vegetable or herb garden is a cost-effective way to supplement groceries. Thrifty people with a bit of outdoor space (or even a windowsill) take advantage of this by planting easy-to-grow produce, reducing grocery bills, and enjoying fresh, homegrown food.
14. Limit Energy Consumption
Frugal people are conscious of their energy use to keep utility bills low. They use energy-efficient appliances, unplug devices when not in use, and adopt habits like air-drying clothes and turning off lights.
Small changes in daily habits can lead to big savings over time.
15. Make Use of Loyalty Programs
Loyalty programs at grocery stores, coffee shops, and retail outlets offer points, discounts, and freebies. Thrifty people sign up for these programs to maximize savings on regular purchases. They keep track of offers and promotions to take full advantage of the benefits.
16. Learn New Skills
Thrifty people often invest in learning new skills to save money on services. Whether it’s sewing, cooking, home repair, or gardening, these skills reduce the need to hire help. Learning new skills also provides a sense of accomplishment and independence.
17. Set Savings Goals
Setting clear savings goals helps thrifty individuals stay motivated and focused on their financial objectives. They break down larger goals into smaller, achievable targets, tracking their progress to stay on course. This habit ensures that saving becomes a priority.
18. Take Public Transportation or Carpool
Frugal people reduce transportation costs by using public transit, cycling, walking, or carpooling. They weigh the costs and benefits of owning a car versus alternative transportation options.
This habit cuts down on fuel, parking, and maintenance expenses.
19. Buy in Bulk When It Makes Sense
Buying in bulk can lead to significant savings, especially for non-perishable items like rice, pasta, and cleaning supplies. Thrifty people carefully plan their purchases, comparing unit prices and considering storage capacity to ensure they get the most value.
20. Embrace Minimalism
Minimalism goes hand-in-hand with frugality. Thrifty people focus on owning fewer but higher-quality items, reducing clutter and unnecessary spending.
They prioritize experiences and meaningful possessions over accumulating material goods, leading to a simpler, more intentional lifestyle.
21. Maintain and Repair Instead of Replacing
Regular maintenance can extend the life of appliances, cars, and clothing. Thrifty individuals invest time and effort in maintaining and repairing items instead of immediately opting for replacements. This habit saves money and reduces waste.
22. Use Coupons and Discounts
Smart shoppers know how to leverage coupons and discounts to cut costs. Thrifty people use apps, websites, and store loyalty cards to find the best deals. They combine coupons with sales to maximize their savings, ensuring they get the best price possible.
