Becoming frugal

[Jwymer167]

Good evening from the UK
I thought i would try to start a small thread on frugality. Being able to save big lumps of your paycheck, to use as capital to invest is obviously very important

I was wondering, what ways have you practised frugality in order to save nice amount of money? For me personally:
£5 phone bill
No financing fancy cars
Share lifts occasionally
Im able to cut my own hair
Dont buy stuff i dont need etc etc.

Im always looking for other ways to save, so im interested to see what some of you guys do

[averagedude]

When it comes to expenses, controlling the big ticket items has the biggest impact.
1. Kids. Make sure that all pregnancies are planned.
2. Housing. Buy or rent a place that is below your means.
3. Vehicles. Keep them till the wheels come off.
4. College. Make decisions on return on investment instead of the experience.

These 4 items will save you a million dollars easily if you are young.

[UpperNwGuy]

Make a monthly budget and stick to it.

[dm200]

The small things can add up.

Starbucks coffee vs brew your own, for example.

Review car insurance. Maybe you are in the wrong (and higher cost) category as a driver?

Review insurance (auto and homeowners) to see if you can raise deductibles.

Consider keeping a car longer.

[bling]

every time you need to spend money for any reason, ask yourself, do i really need it? if yes, do you need it today? if, no, wait a week and ask yourself again.

but, do everything in moderation.

[dm200]

Try to make sure you utilize your healthcare as fully (and with the lowest cost) as possible. Can you, for example, do anything (I can) by email, smart phone or telephone appointments? Do you really need to see a higher cost specialist when your PCP is just as good? Keep your own records of tests, scans, X-Rays, etc. and older ones may indicate you do not need new ones [Happened to me earlier this year - avoided a CT scan of my kidneys because I remembered one from 15+ years ago]

Perhaps you have lower (net) cost options for coverage?

[dm200]

Cell/smart phones - DW and I saved on monthly costs and went from 2 dumb phones to two new smart phones (unlimited calls, texts, data and free hulu) by switching our phones (kept the numbers) from our own Sprint plan to our son's 4 person plan. Win - win..

[texasdiver]

Go over your credit card statements with a fine-tooth comb and highlighter pen. Identify any repeating charges for services like heath clubs, streaming music/video services, online subcriptions etc. amazon prime, That you may not be using or using very much. Cancel all that you can live without.

Add up what you are paying for repeating charges like starbucks, fast food, uber, etc. to see how much these repeating charges add up for the entire month.

Examine your utility bills and look to where you might save on electricity, gas, water, garbage etc. Less AC, less watering the lawn, shorter showers, less hot water laundry, smaller garbage can, etc.

[dm200]

Go over your credit card statements with a fine-tooth comb and highlighter pen. Identify any repeating charges for services like heath clubs, streaming music/video services, online subcriptions etc. amazon prime, That you may not be using or using very much. Cancel all that you can live without.
Add up what you are paying for repeating charges like starbucks, fast food, uber, etc. to see how much these repeating charges add up for the entire month.
Examine your utility bills and look to where you might save on electricity, gas, water, garbage etc. Less AC, less watering the lawn, shorter showers, less hot water laundry, smaller garbage can, etc.

Yes - to all of these..

[dm200]

Are you wasting any food? If so, look for way(s) to eliminate or reduce such waste.

Substitute foods like beans and whole grains for meat - at least in part.

[RobLyons]

Been living that frugal lifestyle ever since moving out of the parents house. Years ago, stretching $40 - $50k for a family of 4 took a lot of frugality on our part. Now it's just part of our lifestyle even though the income has ballooned.


1. Barter and trade. free plumbing, electrical work, farm fresh eggs, random food, occasional child care, home made wine, etc from in laws, cousins, uncles, friends in exchange for us helping them with finances, medical appointments, IT and home security assistance, support, etc.
2. Food. Home made is cheapest and make enough for extra lunches/meals.
3. Vacations. Opt for local, staycations, day trips.
4. Entertainment. Usually a bigger expense than people are willing to admit. Limit pricey events, enjoy the presence of others without spending lavishly
5. Cash Back credit cards. Could be a double edged sword but if disciplined, savings can be had. 6% cash back groceries, 5% at the pump, 1.5% elsewhere
6. Price shop for every necessary expense. Insurance for example, we pay about 50% less than most others for auto, home, and life. Local mechanic vs dealership. (stealership)
7. Evaluate spending. Cut/reduce anything you do not need or really enjoy.
8. Clothes. Buy on sale, wear until permanently stained or develops holes. I have 10+ year old clothes I still wear!
9. Kids. Most pregnancies are not planned, however the big difference is what people buy for their kids. We take hand-me-downs, shop for deals, and teach them about the value of money. No designer, no pricey electronics, no big expensive birthday parties.

[dm200]

When our child(ren) were young and we needed a sitter for my wife and I go out - we joined a babysitting coop. No cost sitters

Even if it seems to be a "bargain" - do not buy things at a discount - that you would not otherwise buy [may be some exceptions]

if over a certain age, get the "Senior discount"

[TheHouse7]

Home ownership has a new host of ways to be frugal: be a friendly neighbor and share tools, understand all the benefits of the services you're paying for (most likely your garbage service provides pickup of appliances to save a trip to the dump). Normal DIY around maintenance, youtube, parts replacement instead of Appliance replacement. Cleaning your own roof, building your own fence, staining your own deck, replacing gaskets, rewiring, Plumbing, ect.

[dm200]

My wife notices good "stuff" at the curb - and gets it if we can use it.

[Skiffy]

In same vein as dm200, plan meals and use leftovers. Going out is for special occasions or a treat, not as a regular event.

A frugal thing we’ve been doing (that I don’t recommend) is not going on any vacations.

I also practice free exercise, walking instead of joining a gym.

Keeping furniture long past it’s useful life (broken down and pet scratched) is also frugal. No alcohol consumption. Low maintenance hair (no dyeing, perming). Practice prevention with teeth cleaning and dr visits. No clothing that needs dry cleaning.

We aren’t the life of the party. Don’t let frugality take all enjoyment out of life.

[dm200]

In same vein as dm200, plan meals and use leftovers. Going out is for special occasions or a treat, not as a regular event.
A frugal thing we’ve been doing (that I don’t recommend) is not going on any vacations.
I also practice free exercise, walking instead of joining a gym.
Keeping furniture long past it’s useful life (broken down and pet scratched) is also frugal. No alcohol consumption. Low maintenance hair (no dyeing, perming). Practice prevention with teeth cleaning and dr visits. No clothing that needs dry cleaning.
We aren’t the life of the party. Don’t let frugality take all enjoyment out of life.

I think family vacations are very important, in many ways. With young child(ren), we took several vacations by air - when my airfare was paid by my employer to a business conference.

As seniors, DW and I get gym memberships (local jurisdiciton) for $90 per year (both of us)

[sschullo]

Read the most famous frugal living family on the planet: Mr. Money Mustache. This brilliant young man has done more to make young people think about joining the never-ending borrow and spend rat race and their hideous and damaging consumer culture than anybody else I know. Think about this, he writes about one of the most boring subjects we know, FRUGALITY.

I always paid myself first and spent the rest. I was able to do this with my meager income because I never, ever bought a new car (until I retired and could afford to pay cash), and rented out part of my house to get extra income. Always look for ways to increase your salary. Buy used items, including computers, clothes. Of course, sometimes I bought new clothes and computers but I kept them for a long time. Using common sense is still the best strategy for living frugally and being able to do inexpensive activities that improve your well being.

[dm200]

Some health insurance plans offer free or low cost gym memberships. Check the fine print.

If you smoke, quit and you will save a lot of money.

[dm200]

When you have a Physician's appointment - get the maximum benefit:

Make notes ahead of time so you tell the Physician everything relevant AND ask any questions you need the answers for. During the appointment, make notes of what the Physician tells you.

I was just speaking to a longtime friend - who mentioned that her husband often gets things backwards from his Physicians. Some such things can be life-threatening.

Look into funeral/burial costs. If a veteran (or spouse), consider being buried in a national cemetery (free). There are also "burial societies" for more fairly priced funerals.

[climber2020]

I was wondering, what ways have you practised frugality in order to save nice amount of money?

No kids (don't want em)
Small house
Non-fancy utilitarian car (don't care about cars)
No boats or other large, expensive, cumbersome money pits with recurring expenses

With all the above large decisions made early in life, nothing else really makes a significant difference. I can buy a $5 coffee every single day for the rest of my life and it really won't affect anything (but I still don't do that).

When it comes to expenses, controlling the big ticket items has the biggest impact.

Pretty much what he said.

[texasdiver]

The OP is from the UK so this won't apply. But for those of you who are in the US and have medical coverage....

1. When you make your annual appointments for yourself or child make sure you request wellness checks for youself or "well child" checks for your kids. Under the ACA both adults and children are entitled to one free wellness check every year. But in my experience you actually need to request this type of visit when you make the appointment or the clerk may code in any number of other reasons for the visit into the appointment record which will generate any number of additional charges.

2. When you are at the annual wellness appointment you can of course bring up any and all medical issues that you are having with your doctor. They routinely discuss any and all medical issues during any office visit. The important thing is to get the visit coded properly when you make the appointment because this can be difficult to change later.

If when you make the appointment you mention some other issue like say 'my knee is acting up' or 'worried about my diabetes' it is possible that the appointment clerk will code the visit for one of those other reasons and you'll have the visit charged at the regular rate against your deductible. This happened to me last year and I had to write two appeal letters and wait 3 months to get the charge reversed.

Bottom line...under the ACA you are entitled to a variety of free and preventative care such as annual wellness visits, vaccines, even some preventative prescriptions like lipitor (at least under my plan). Be sure you know what types of preventative are are free under your plan and take advantage. But be vigilant when you take advantage of these free services so they don't apply other appointment codes that generate charges.

[clown]

I realize that OP is in the UK, so this may not apply. But - - -

I put 15% of paycheck into the 401K plan (with employer partial match) for many years. With prudent investment, it grew very nicely. After retirement, when I was in a lower tax bracket, I converted into a Roth IRA and groaned when I paid the taxes. Now all income and capital appreciation will be free of tax.

With a little luck, I may not need to use it and so can pass along to heirs -- tax free to them upon sale of assets or removal of income. What a great bequest. I didn't start out with this in mind, but wouldn't it be nice if things work our that way.

[sport]

I am surprised no one mentioned this, it might be the most important of all:
Choose your spouse carefully.

[dm200]

Both under the ACA and under Medicare - the annual wellness (or whatever else they might be called) are no charge - BUT commonly you are charged if you bring up any problems. So, be careful.

Under my Kaiser Medicare plan, the "letter" of the plan and fine print says the same thing -- HOWEVER I have often brought up new issues and, so far, have never been charged.

[dm200]

I am surprised no one mentioned this, it might be the most important of all:
Choose your spouse carefully.

Yes - I agree 100%. Or, perhaps, for some - NO spouse..

[dm200]

In most cases, I would not skip children.

There are, in my opinion, limits on frugality.

[texasdiver]

Both under the ACA and under Medicare - the annual wellness (or whatever else they might be called) are no charge - BUT commonly you are charged if you bring up any problems. So, be careful.

Under my Kaiser Medicare plan, the "letter" of the plan and fine print says the same thing -- HOWEVER I have often brought up new issues and, so far, have never been charged.

I have Kaiser. You need to make sure that you request a wellness visit when you make the appointment. The appointment clerks are coached to ask WHY you are making the appointment and if you talk about some other specific issue like your knee hurts or you aren't feeling well or you need your diabetes checked or ANYTHING else then the clerk will most likely code the appointment for that other reason and you will get billed accordingly. So the key is to make a wellness visit appointment. You need not share anything else with the appointment clerk at that time. All they are doing is applying a billing code to the appointment.

Once you are in the office with your primary care physician you can and should bring up any other issues to address with them in the context of the wellness visit. That is 100% legit and what they do all the time. You just don't want to make an appointment for some other reason and then expect them to code it as a free wellness visit. They are not stupid and while they are happy to accommodate the requirements of the ACA to give you a free annual wellness visit, they will only do so if that is what you specifically request because they make more money if they can apply a different billing code to the visit.

[Point]

Make a budget. Stick to the budget.

Live well below your means. Period.

Identify entertainment category of budget. Fund it. Do not go over budget.

Don’t conflate food with eating out. The former are groceries. The latter, entertainment. Wine, alcohol, cigarettes, junk food are not food.

Trick for discretionary: only use cash. Fund it weekly or biweekly, put cash in pocket. When it’s gone, you’re done.s

[dm200]

Both under the ACA and under Medicare - the annual wellness (or whatever else they might be called) are no charge - BUT commonly you are charged if you bring up any problems. So, be careful.
Under my Kaiser Medicare plan, the "letter" of the plan and fine print says the same thing -- HOWEVER I have often brought up new issues and, so far, have never been charged.

I have Kaiser. You need to make sure that you request a wellness visit when you make the appointment. The appointment clerks are coached to ask WHY you are making the appointment and if you talk about some other specific issue like your knee hurts or you aren't feeling well or you need your diabetes checked or ANYTHING else then the clerk will most likely code the appointment for that other reason and you will get billed accordingly. So the key is to make a wellness visit appointment. You need not share anything else with the appointment clerk at that time. All they are doing is applying a billing code to the appointment.
Once you are in the office with your primary care physician you can and should bring up any other issues to address with them in the context of the wellness visit. That is 100% legit and what they do all the time. You just don't want to make an appointment for some other reason and then expect them to code it as a free wellness visit. They are not stupid and while they are happy to accommodate the requirements of the ACA to give you a free annual wellness visit, they will only do so if that is what you specifically request because they make more money if they can apply a different billing code to the visit.

For office visits to my Kaiser PCP, I always make such appointments online. I pick the annual wellness/physical category. No phone clerk to deal with.

The only time I make a PCP appointment by phone if if it is something needing her (or someone's) quick attention AND she has no appointments available. Often, though, unless she is out - on vacation, etc. she has appointments the same or next day.

[GerryL]

For me the key to living frugally was always to automate savings. I had money shifted automatically into savings every month and as a result my living income was less than my earned income. And that's all I had to spend.
As others have mentioned, a budget can help you figure it out. Look up the 50-20-30 budgeting method (plenty of hits come up in Google).

[rgs92]

Stop vacations. If you live in a nice house, why pay for time away from it? You are paying double when you stay away from home.

[mariezzz]

Lots of good suggestions above.
I do most things in my house - pretty good at DIY and figuring out how to fix appliances that have stopped working (tons of info on the internet!).
I don't eat out often. When you make your own food, you know what goes in it - most people would be appalled if they watched most processed food being manufactured.
I, too, use walking as exercise and don't spend on a gym membership (you also save on workout clothes!) Rather than getting annoyed at not finding a close parking spot at the park and ride, I see it as an opportunity for exercise.

I'm fairly frugal where consumer goods are concerned, but I will also spend at times.
I buy organic strategically, but feel it's most important to eat mainly unprocessed food, even if not organic. But, organic often tastes better, has a better texture, etc.; organic meat in particular. I'd rather eat meat less often and in smaller amounts, but eat organic.

If I lived in the UK, I'd take advantage of London's theater 'day of show' ticket deals at the box office. I'd bring or pick up something for dinner (sandwich, etc.) at a supermarket (that's the frugal side), but I wouldn't miss out on the incredible theater to be had in London. If I didn't know someone near/in London I could stay with, I'd find a hotel deal & spend some time walking or in the free museums throughout London. The most challenging thing would be to not indulge in too much theater.

[Socrates]

hmmmm go to super cuts for $18 or financing a fancy car......

[CarpeDiem22]

The biggest contributor to frugality is tracking your expenses (you didn't mention if you already do so). Knowing how much you have spent during the month and on what items will greatly improve your financial well-being as it gives you room to cut waste. If you get that done, the most important categories to look for are housing, transport and food.

[texasdiver]

Stop vacations. If you live in a nice house, why pay for time away from it? You are paying double when you stay away from home.

If you live in a desirable vacation area there are house swapping web sites where you can trade houses with someone in another part of the world for basically free. Obviously this is going to be easier if you have a nice apartment in NYC or San Franciso or London rather than a double-wide trailer in rural Kansas.

[TheOscarGuy]

Try to make sure you utilize your healthcare as fully (and with the lowest cost) as possible. Can you, for example, do anything (I can) by email, smart phone or telephone appointments? Do you really need to see a higher cost specialist when your PCP is just as good? Keep your own records of tests, scans, X-Rays, etc. and older ones may indicate you do not need new ones [Happened to me earlier this year - avoided a CT scan of my kidneys because I remembered one from 15+ years ago]

Perhaps you have lower (net) cost options for coverage?

OP is from UK, not United States.

[finite_difference]

Stop vacations. If you live in a nice house, why pay for time away from it? You are paying double when you stay away from home.

If you live in a desirable vacation area there are house swapping web sites where you can trade houses with someone in another part of the world for basically free. Obviously this is going to be easier if you have a nice apartment in NYC or San Franciso or London rather than a double-wide trailer in rural Kansas.

I think traveling to see other countries is very important for the way it enhances your perspective. It’s a joy to experience other cultures. Who doesn’t want to travel the world? To see the Pyramids and the Leaning Tower? Or the fjords and Stonehenge? Or Easter Island and the Great Wall?

It’s also the closest thing we can get to traveling to other planets

You can also AirBNB your house while you are away, and get your vacation for free.

[shell921]

Stop vacations. If you live in a nice house, why pay for time away from it? You are paying double when you stay away from home.

I'm not keen on continuous traveling but getting away and having a change of scene from time to time is good for me and enables me to
REALLY appreciate my beautiful custom home when I return!

[unclescrooge]

Just spent 12 in Sydney, Australia.

We stayed with a cousin, so accommodation was free. It was also tight with 8 people in a 3 bedroom, which made us appreciate our home all the more when we got back.

[shell921]

For me the key to living frugally was always to automate savings. I had money shifted automatically into savings every month and as a result my living income was less than my earned income. And that's all I had to spend.
As others have mentioned, a budget can help you figure it out. Look up the 50-20-30 budgeting method (plenty of hits come up in Google).

+1

This is excellent advice !!!

[RickBoglehead]

There are lots of ways to live frugally. One of the best I use is annualizing everything and looking at what I would have to earn to pay for it. Or, if more relevant, look at things on a percentage basis.

Also never buy anything at a gas station except gas...

Examples:

Annualizing:

Buying a coffee in the morning, and buying lunch every work day. Let's say coffee is $3 and lunch is $7 for a total of $10 a day. 50 work weeks a year is 250 days. That's $2,500 AFTER tax. With Social Security, Medicare, State Tax, and Federal Tax, let's assume a rough tax rate of 40%. Dividing $2,500 by 0.60 is $4,167 a year that I would have to earn to pay for coffee and lunch. I used to head a department where the people who whined about their compensation bought the above, and often breakfast, spending $15 a day, so they had to earn $6,260 a year to pay for that habit. For many, that was 25% of their compensation. I listen intently while sipping the coffee I drove in with (or the refill from the office pot), or eating the lunch I brown bagged.

Percentage Basis:

Every day we are faced with either price increases or quantity reductions. Coffee goes from a pound to sometimes 11.5 ounces. That's a reduction of 28.1%. Or an item we regularly buy goes from $1.99 to $2.19. That's a 10.05% increase. I pointed that out to my wife when she was picking up a can of something, and the price was $.63 vs. the sale price last time I noticed it of $.49. That's a 22.2% increase! I encourage her to buy a case of things when it goes on sale. We have a pantry, and it has a plenty of staples bought on sale. Just because something costs well under a dollar doesn't mean that you should ignore increases in price.

[Forzamilano10]

Bring a loaf of bread, peanut butter, and bananas to work each week. Eating out at work can easily cost $8-$12 a day and buying a snack at work can be just as costly.

[jacksonm]

I adopted the ketogenic diet about 3 months ago and have lost about 20 lbs so far. Last month when I got my credit card bill I was surprised to see that it was about $500 less than it usually was (I use it for everything to get the 2% cashback and pay it in full each month).

So I had to ask my wife is it possible we were spending $500/month on eating out at restaurants?

Apparently so (you pretty much have to cook your own food if you want to strictly follow the diet).

[Hukedonfonix4me]

*Clothes from thrift stores
*Drink Water if eating out at restaurants (or bring a client and expense the meal)
*Drink coffee provided in the office kitchen
*"Gasbuddy" app for savings at the pump
*Eat leftovers
*No pets
*Cut cord (no cable TV, HD antenna receiver for local channels)
*Credit cards for points/cash back (pay off monthly statements in full)

[Travel1013]

Wisely choose a life long partner with similar values.

[dm200]

Establish and maintain a good relationship with all Physicians and Medical providers - including office staff. My opinion and experience is that doing so increases higher quality of medical care and higher financial "value".

[delamer]

For me the key to living frugally was always to automate savings. I had money shifted automatically into savings every month and as a result my living income was less than my earned income. And that's all I had to spend.
As others have mentioned, a budget can help you figure it out. Look up the 50-20-30 budgeting method (plenty of hits come up in Google).

Agreed.

Save what you need for your long term goals — retirement and college were ours.

Then live on the rest.

As far as “the rest” goes, buy a house that meets your needs, but no more. Live in that house for a long time.

[Hogan773]

Don't have kids, live outside in a tent, take a shower in the local stream, make your own shampoo out of dirt, eat whatever berries you can find and supplement with more dirt or roadkill if it presents itself.

You will be on the FIRE train very quickly. You will maximize your nest egg and pass it on to the government when you die prematurely but you will have been frugal so there's that

[Elena]

If this makes any sense: buy high-end items, but only one that you will love and will last for a very long time. I have very few things compared to the average household, but they are all quality items. I research thoroughly before purchasing something. I have made mistakes, like many, but impulse purchases are not my thing, nor is polyester for non-sports clothing, lol.

[WhiteMaxima]

Be frugal but not a miser.