In 2025, the ability to live below one means is being recognized by more people than at any other time. Inflation rates have yet to abate; thus, the cost of basic living expenses, such as groceries, housing, and medical care, continues to increase stubbornly. This strains budgets and creates a perception of an upward trend in frugality.
According to experts, frugality has nothing to do with deprivation or sacrifice; rather, it is about making intelligent, purposeful decisions that can maximize savings and minimize imposed financial stresses. Based on surveys, 61 percent of Americans have come to believe that being frugal is not only acceptable but also a wise financial decision.
It is not a generational trend alone; middle-aged individuals are also joining the minimalist lifestyle and financial awareness movement. As we live in an era of increased debt and a more competitive job market, there are ways to succeed in life by spending less than you earn. These 15 professional-recommended methods can help you use less, save more, and achieve financial success in the new economy.
Track Every Dollar
You can’t manage what you don’t measure. The primary explanation for living below your means is to ensure you understand where your money is going. Tools like Mint, YNAB, or even a regular spreadsheet can help you monitor your spending habits.
None of this is meant to make you feel guilty about everything you buy (yes, that morning latte is okay!). Instead, use this data to gain insight into your spending habits and explore areas where you can make reductions. Awareness is the first step to making lasting changes.
Automate Your Savings
Saving doesn’t have to feel like a chore. Automating your savings means you’ll always save without struggling to spend first, which will help you save more. Automate the money that goes to your savings account as soon as you receive a paycheck. Consider it a way of paying a bill, but in this case, you’re paying for your future.
Top tip: Create a rainy day account to save for just in case you encounter an unpleasant surprise, such as a medical bill or car repair, or if you change jobs. Professionals recommend keeping three to six months of living expenses as your emergency fund.
Try the 50/30/20 Rule.
Budgeting doesn’t have to be complicated. The 50/30/20 Rule is a straightforward model for maintaining a balanced budget. Invest half of your earnings on necessities (such as rent, food, and utilities), a third on wants (such as going out or eating out), and the last fifth on savings or paying off debt. This scheme will enable you to live within your means while still focusing on your financial objectives.
Make Needs Matter Most
There is one more step to take before clicking the Buy Now button. Ask yourself: Is this a necessity, or do I need something nice to have? Although making spontaneous purchases (particularly with one-click buying) is appealing, it is possible to spend more money than necessary by making informed decisions.
This may seem like a minor practice; however, by consistently taking the time to remember that what is immediately needed is more important than what is just wanted, one can accumulate savings in the long run.
Go for Second-Hand
One does not have to spend a lot of money to buy something brand new when a second-hand option is available that will work just as well. Regardless of what kind of goods you seek, if it’s furniture, electronics, or even clothes, thrift shops, consignment stores, and online options, such as Facebook Marketplace and Poshmark, are gold mines for those who always price check.
Often, you can purchase items in excellent condition at a fraction of the retail value. It is better to opt for second-hand items, as this is more sustainable for the planet, which is a win-win.
Meal Plan Like a Boss
One of the biggest budget crushers is eating out, which can be mitigated by meal planning, as you will save not only money but also time. Create a weekly menu planner that considers sales, offers, and in-season produce to maximize the food budget and extend its duration.
This not only discourages you from getting taken advantage of, but also makes your nights much easier when the dreaded debate about what to eat starts. It can help regulate portions and ingredients at home, aiding in weight loss while promoting health and reducing fat.
Cut Subscription Fat
The world runs on subscriptions, and you are not using as many as there are. These can stack up rapidly in the form of gym memberships, streaming services, and apps. This is a great way to thoroughly review your subscriptions and cancel those you no longer use.
At first glance, spending $15 each month may seem insignificant, but over a year, it will amount to $180 that you can allocate to savings or use to reduce a debt.
Treat Luxuries as Luxuries
It is not a bad thing to treat yourself to an indulgence every once in a while, but luxuries should not be made into daily routines. If you savor your daily latte or indulge in a spending spree on the latest, fancy skincare, these pleasures can be looked forward to during a special occasion.
By saving luxuries for use during celebrations, you will develop a greater appreciation, and you will save your budget for things that matter.
Build a Safety Net
Life is unpredictable, and sometimes it is not always a good thing. An emergency fund can be a game-changer for unexpected medical bills and car repairs. The Rule of thumb advised by experts is to have three to six months of living expenses set aside in case of unexpected life events. It becomes your buffer against financial stress and uncertainty.
Tackle High-Interest Debt First
Being in debt, particularly with credit cards, is a significant hindrance to financial freedom. Emphasis should be placed on repaying these obligations as soon as possible. This can save you hundreds, or even thousands, of dollars in interest costs, even when you add $50 to your balance every month.
To remain motivated, one can apply techniques such as the debt avalanche method (paying off debt with the highest interest rate first) or the debt snowball method (paying off the smallest balances first).
Cut Out Car Costs (If Possible)
It is costly to own a car because it involves various expenses, including insurance, gasoline, maintenance, and depreciation. Consider eliminating the vehicle if you live in a city with reliable public transportation.
You can even carpool or ride a bike when there’s an opportunity, as it saves you a considerable amount of money each month. Such savings may soon amount to thousands of dollars every year.
Follow the “One-In, One-Out” Rule
Each time you purchase something new, decide to put away, or sell something you already have, this habit will not only prevent clutter but also encourage you to think critically about every purchase you make.
Is this new thing essential, or can you make use of what you already possess? Additionally, you may earn some extra money by selling old items and putting the proceeds into your savings.
DIY the Small Stuff
You can save a fortune with DIY projects, even when fixing a leaky faucet or adding a new coat of paint to a room. Social networking sites, such as YouTube, are full of instructions to guide you in repairing a simple machine or doing something original. You will not only save money but also gain the self-satisfaction that comes with completing a DIY project.
Keep Your Eye on the Prize
What’s your “why”? It can be a dream vacation, a house, or financial independence; the process of frugality will always feel liberating rather than limiting, with clear objectives. Write a list of goals, create a vision board, or set reminders to keep them at the forefront of your mind. Revisit these goals periodically to stay motivated and in control.
Find Your Frugal Tribe
It is easier to spend money in the company of like-minded individuals. Find smart-spending, thrifty friends, relatives, or a like-minded community on the Internet. Offer pointers, reward triumphs, and assist one another during the lows. The team spirit can make the path towards financial independence much more enjoyable.
Takeaway
The fact is that living within your means is not a question of deprivation; it is a way to make conscious choices that align with your values and priorities. Don’t start by buying a house or a vehicle. Each financial decision you make sets a better foundation for your future finances.
The best time to start was yesterday. The second-best time? Right now.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
How Total Beginners Are Building Wealth Fast in 2025—No Experience Needed
How Total Beginners Are Building Wealth Fast in 2025
I used to think investing was something you did after you were already rich. Like, you needed $10,000 in a suit pocket and a guy named Chad at some fancy firm who knew how to “diversify your portfolio.” Meanwhile, I was trying to figure out how to stretch $43 to payday.
But a lot has changed. And fast. In 2025, building wealth doesn’t require a finance degree—or even a lot of money. The tools are simpler. The entry points are lower. And believe it or not, total beginners are stacking wins just by starting small and staying consistent.
Click here and let’s break down how.
How to Save on International Money Transfers: What Banks Don’t Tell You
How to Save on International Money Transfers
Normally, I’d question the secret fees that are hidden in my bank’s international money transfer services. While banks sometimes advertise low transfer fees, they usually do not mention the substantial exchange rate margins that quietly siphon money out of your funds. It shouldn’t be expensive to send money overseas.
I’ve discovered seven practical strategies anyone can use to save on international money transfers. Whether you’re sending a hundred dollars to a family member or paying for a service in a foreign country, these tactics will help you hold onto more of your hard-earned cash.
