How to Save Money (+ 12 Frugal Living Tips!)

Who doesn’t like the idea of financial freedom? But once we start thinking about what it takes, we’d probably prefer hiding under the covers 🛏 and hitting snooze⏰️. 

But wait, it doesn’t have to be that way. You do not need to deprive yourself of your joys and trim your expenses💰. 

Instead, making minor adjustments in your spending habits can help you save money for your future goals – whether you want to buy a car🚘 or a house🏠. 

The key is to spend guiltlessly on things that bring you joy and strive for financial freedom all along.

Here’s a quick guide on how to save money💲 strategically and live frugally. Yes, it requires a little effort, but it isn’t far-fetched, and you’ll see how. 

Frugal living: how to save money

Saving money isn’t about keeping yourself from doing things that bring you joy. It isn’t the point, anyway. After all, the Easterlin Paradox highlights that money makes us happy 😊only to a certain extent – so ensure to utilize it unless it ceases to buy you happiness. 

Instead, the core concept of saving money is about reflecting🤔💭 on your priorities in life. Spending less on the least important stuff and more on necessities and interests makes up for a balanced route. 

We’ve curated a list of various ways to cut costs. You can choose the ones that seem fit ✅️and discard the rest❌️.

1. Define your saving goals  

If you’re like most people, perhaps you have a lot to save for, from living debt-free to purchasing a new home 🏡and medical emergencies🏥 to planning your retirement. 

Dividing the savings goals makes them easier to anticipate and achieve. You can split your goals into short, mid, and long-term. 

  • Short term. These goals include the things you’re working on for the coming year. It may include purchasing a new e-bike🚲, traveling expenses🧳✈️, holiday gifts🎁, credit card debt payments, minor home improvements🏠, etc.
  • Midterm. Your mid-term goals are achievable within a decade. This may include entire home 🏠renovation, backyard restoration, a downpayment on a vehicle 🚙 or a house, furnishing your home, and more. 
  • Long term. Long-term goals are the goals you want to achieve as you move through the course of your life. They are the bigger savings for retirement, vacation🏖🌴, home, or business👔. 

Once you separate your goals into three categories, it’ll be easier for you to visualize them. Later, you can keep the savings amount in separate accounts to meet your goals. 

2. Go easy with online shopping

The interest in online shopping is growing with each passing day. More and more consumers prefer staying home and ordering things with a click or a tap👨‍💻. 

Unfortunately, a few people spend on things they do not even need. Many people today make impulse purchases, and if you’re on the same page, you must stop right away. 

As mentioned earlier, we’re on to prioritizing the spending. So, if you’re buying anything you do not need, you’re spending a chunk of your salary💵 that could have gone into your monthly savings. 

The hack is not to save your billing information. Instead, type your shipping address and credit card💳 number every time you place an order. All the extra work will seem daunting and might keep you from unnecessary purchases. 

3. Reduce your car expenses 

Your car takes up a major chunk of your money, from maintenance costs to car🚗insurance and more. 

You can, however, refinance your auto loan and maximize your savings by capitalizing on lower interest rates. Besides, shop for car insurance regularly. This will help reduce the costs rather than auto-renewing your existing policy. 

Additionally, avoid unnecessary speeding up and drive less to cut car maintenance costs. Consider walking🚶‍♀️🚶‍♂️, taking a bike🚵‍♂️, or using public transportation🚍where possible. 

For instance, you do not need to take your car while visiting a nearby park🎡🏞 for downtime on the weekend. The same goes for going to the gym🏋‍♂️💪or visiting a nearby store🏬. 

4. Limit gas usage 

While you cannot control the surging gas prices, you can take a few steps to limit gas usage. A few fuel-efficient driving techniques are avoiding high speeds🚦 and maintaining a steady speed. Further, use gas apps to add pennies every time you fill the tank. 

A few apps give you cash back on gas purchases, while others let you save money💰 per gallon via their specialized cards. 

5. Choose an affordable cell phone plan 

Your current cell phone📲? plan might feel like the best, but is it? You must compare different cell phone plans to pick the right one. Switching your plan is one way to save money on your mobile phone bills💶. 

Besides, you can remove insurance to save around $100 annually. Plus, opting for paperless statements and autopay can help you save $5-$10 monthly. 

6. Prepare for grocery shopping

Knowing how to save money💲 on groceries 🛍can significantly add to your savings. A little work before going grocery shopping is all it takes to get the job done. Make sure you check your pantry and create a shopping list. 

This will keep you from buying things you do not need. Besides, keep an eye on loyalty programs and coupons to boost your savings when you shop🛒🛍. 

Your local grocery store may provide additional perks only in exchange for your email address📧. 

Also, using a cash-back credit card allows you to earn additional cash on your purchases. A few cars give 5% while others offer 6% cash back. 

Lastly, you can hunt for saving options on each store’s app if you purchase groceries from giant retailers like Walmart🏪, Amazon, or Target. 

7. Move in with your family or get a roommate

Rental costs are around 30% of the entire household budget. This means avoiding rental expenses can help you save 30% of your earnings. 

Consider a few options before paying a hefty amount on the rental apartment🏠. 

For instance, you can move in for free with your family👨‍👩‍👧‍👦 or relatives👨‍👩‍👦‍👦. Alternatively, you can pay them half of the rental amount, which would be far less than the full amount for renting a space. 

You can gradually add the money to your savings and purchase a place for yourself. 

Lastly, you can share your space with a roommate, whether you’re single👨👩 or a couple👫. This will chip away your bills, and they might share the grocery expenses, too. 

8. Get an Internet and cable bundle 

Do you pay separately for your internet and cable🚠? If yes, now is the time to bundle them to add to your savings. 

Bundling your internet and cable can help reduce the overall costs of paying for both services individually. 

Alternatively, you can cut the cable because much of what you stream on TV is available online. Another option is to restrict some streaming services and keep the money🤑 in your savings. 

9. Avail entertainment discounts 

There’s no point in paying for entertainment when you can get it free. The key is to remain active and keep track of free entertainment days. 

For instance, several national parks🎢 and museums🖼 offer free days for you and your family👨‍👩‍👧‍👦to enjoy. 

Besides, your local communities also offer free virtual events🎹🥁 and concerts🎶🎸. So, keep an eye on the local calendar before purchasing the pricey and good-for-nothing tickets. 

Also, do not forget to ask for student👩‍🎓👨‍🎓, elderly👴👵, and military member 🪖discounts to scrimp wherever possible. 

10. Track your spending 

You can also pinch the pennies 🪙by tracking your spending. 

See where your monthly cash flows. You can do so by comparing your income vs. expenditures. It will help you progress toward your savings goal. Install a suitable budget app to monitor your expenses. 

11. Reduce your student loan 

You can lower your student loan by enrolling in income-driven repayment. It helps manage your student loan because it’s tied to your income💸. 

Contrarily, you can make extra payments to pay the debt quicker and reduce the interest rate or enroll in autopay to benefit from a discount. 

12. Be realistic and positive

Do not expect perfection to follow your lead once you set your saving goals. Be flexible and avoid forcing an order where things get messy. 

You’ll realize on your road to savings that you cannot set aside per your preferences for every goal🙌 immediately. 

However, stick to it, revisit, and replan as your situation changes. Experiment with different ways to reduce your target amount and adjust the expenses. 

Above all, monitor where your money 💰 goes to spot unnecessary expenditures and track places where you can afford to save. 

You cannot expect to meet your financial goals right off the bat; it takes effort, dedication, and consistency to stay on track and kickstart your savings. 


Money management 💲 is a skill that takes a lot to master. You could be making millions a month, but if you spend extravagantly and never track your expenses, you’re a step away from messing up your life. 

Saving money makes you feel more peaceful✌️and secure and provides a financial backdrop for emergencies 🦺 and uncertainties of life. 

Hopefully, our guide on how to save money and live frugally 💵💰 will allow you to meet your short and long-term financial goals while equally enjoying your hard-earned money💵🤑.

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