Cheapest Way Of Living: 9 Smart Ways To Cut Your Living Costs

You’re probably here because your bank account keeps giving you those dreaded low-balance notifications, and you’re tired of wondering where all your money went.

Trust me, I’ve been there, staring at my phone like it personally betrayed me. The good news? You don’t need a six-figure salary to live comfortably. You just need to master the cheapest way of living without looking like you’re counting pennies at every turn.

Here’s the thing: living cheaply isn’t about deprivation or eating ramen noodles for every meal (though no judgment if that’s your jam). It’s about being intentional with your money so you can actually afford the life you want.

And honestly? Some of the wealthiest people I know are also the most frugal. They understand something crucial: it’s not about how much you make, but how much you keep.

In this guide, I’m breaking down nine proven strategies that’ll help you cut your living costs without sacrificing your quality of life. These aren’t just theoretical tips, they’re practical moves that real people use every single day to build financial stability. Ready to take control of your finances? Let’s get into it.

What Exactly Is The Cheapest Way To Live?

Here’s something people don’t tell you: there’s no magic bullet for cheap living. No single hack that’ll suddenly make your expenses disappear. The cheapest way of living is actually a combination of smart choices you make consistently over time.

Think of it like building muscle at the gym. You can’t just do one exercise and expect to get ripped, right? You need a complete routine. Same thing with your finances. You’ll need to combine different strategies, tweak them to fit your lifestyle, and stick with them long enough to see results.

The strategies I’m sharing today work because they attack your expenses from multiple angles. Some will save you a few bucks here and there, while others could slash hundreds from your monthly budget. Combined? They’re seriously powerful.

Does Living Cheap Mean You’re Poor?

Let me clear up this misconception right now: living cheaply doesn’t mean you’re broke or barely scraping by. Actually, it’s quite the opposite.

Living cheap is a proactive choice, not a desperate measure. It’s what smart people do to prevent financial disasters before they happen. I’ve met millionaires who drive ten-year-old cars and clip coupons. Why? Because they understand that wealth isn’t built by spending every dollar you earn.

When you choose to live below your means, you’re essentially building a financial buffer zone. You’re creating breathing room in your budget so that when life throws you a curveball (and it will), you’re not scrambling to put out fires. That’s not poverty, that’s wisdom.

Why Should You Even Bother Living Cheaply?

Fair question. If you’re making decent money, why should you stress about living cheaply? Here’s why: debt is a financial prison, and expensive living is usually what lands people there.

Every dollar you spend on unnecessary expenses is a dollar that could’ve gone toward building your emergency fund, paying off debt, or investing in your future. And here’s the kicker: once you’re trapped in debt, climbing out becomes exponentially harder because you’re constantly paying interest instead of building wealth.

Living cheaply gives you options. It means you can weather a job loss without panicking. It means you can pursue opportunities without being handcuffed by financial obligations. It means you actually get to choose how you spend your time instead of being forced to work jobs you hate just to cover inflated expenses.

Benefits Of Cheap Living

So what actually happens when you commit to finding the cheapest way of living? Let me break down the tangible benefits you’ll experience.

• Your Income Finally Feels Adequate

Ever feel like you’re making decent money but it never seems like enough? That’s usually because your expenses have inflated to match (or exceed) your income. When you intentionally reduce your living costs, suddenly that same paycheck stretches much further.

For example, if you’re earning $5,000 monthly and you keep your expenses under $3,000, you’ve got $2,000 left over. That’s not chump change. That’s real money you can use to build the life you actually want instead of just surviving paycheck to paycheck.

• You Can Actually Save Money

Here’s something my finance professor drilled into my head during grad school: saving isn’t what you do with leftover money, it’s a priority you build into your budget. But when your living costs are sky-high, saving becomes impossible no matter how much you prioritize it.

Cheap living creates the margin you need to fund your emergency savings, retirement accounts, and other financial goals. And honestly? Having money in the bank is one of the best feelings in the world. It’s like a security blanket for adults.

• Financial Stress Decreases Dramatically

I don’t have official statistics on this, but I’d bet money that financial stress is behind half the arguments couples have and at least 80% of those 3 AM anxiety sessions. When you’re living beyond your means, every unexpected expense feels like a crisis.

But when you’ve mastered cheap living? You’ve got breathing room. Your car breaks down and instead of panicking, you simply tap into your emergency fund. That peace of mind is priceless, and it’s one of the biggest benefits of keeping your living costs low.

9 Practical Ways To Live Cheaply

Alright, enough theory. Let’s get into the actual strategies you can implement starting today to slash your living costs.

1. Audit And Slash Those Monthly Subscriptions

Real talk: most people have no idea how much they’re spending on subscriptions each month. It’s death by a thousand paper cuts, except each cut is $9.99.

Grab your bank statements right now and highlight every recurring charge. Netflix, Spotify, that gym membership you haven’t used since January, the meditation app you downloaded during a particularly stressful week, that meal kit service you forgot to cancel. They add up fast.

Here’s what I want you to do: cancel everything you don’t use at least twice a week. And for the subscriptions you do keep, downgrade to cheaper tiers. Netflix has different pricing levels depending on video quality and number of screens. Do you really need 4K streaming, or would standard definition work just fine on your phone?

Also, stop subscribing to multiple services that do the same thing. You don’t need Netflix AND Hulu AND Disney+ AND HBO Max. Pick one or two max, and rotate them. Watch everything you want on Netflix for a few months, cancel it, then subscribe to Disney+ for a while. This strategy alone could save you $30-50 monthly.

– Share Subscriptions With Friends Or Family

Most streaming services allow multiple user profiles. Why not split the cost with family members or trusted friends? You pay for Netflix, your sister pays for Spotify, your buddy covers Disney+, and you all share. Just make sure you’re following the terms of service, obviously.

2. Embrace The World Of Secondhand Shopping

I used to think buying secondhand meant settling for inferior quality. Then I bought a barely-used designer jacket at a consignment shop for 70% off retail, and my perspective shifted completely.

Here’s the truth: buying everything brand new is a waste of money in most cases. The second you drive a new car off the lot, it loses thousands in value. That brand new couch? Someone’s selling the exact same model on Facebook Marketplace for half the price because they’re moving.

– Where To Find Quality Secondhand Items

Thrift stores like Goodwill and Salvation Army are obvious choices, but don’t sleep on these options:

• Poshmark and ThredUp: Great for clothing, shoes, and accessories
• Facebook Marketplace: Furniture, electronics, and pretty much everything else
• OfferUp and Craigslist: Local deals on bigger items
• Consignment shops: Higher-end items that have been vetted for quality

When it comes to cars especially, buying used is one of the smartest financial moves you can make. Let someone else take that initial depreciation hit. A three-year-old car with low mileage will serve you just as well as a brand new one, but cost significantly less.

FYI, I’m not saying buy everything secondhand. New mattresses, underwear, and safety equipment like car seats? Yeah, buy those new. But for most other stuff? Secondhand is the cheapest way of living without sacrificing quality.

3. Get Creative With Low-Cost Entertainment

Entertainment is where budgets go to die. Between eating out, movies, concerts, and weekend activities, you can easily blow through hundreds of dollars without even realizing it.

But here’s the secret: experiences don’t have to be expensive to be memorable. Some of my favorite memories cost almost nothing. The key is getting creative instead of defaulting to expensive options.

– Affordable Alternatives To Expensive Outings

Instead of dropping $50 at a restaurant, pack a picnic and head to a local park. Bring a blanket, some homemade food, maybe a frisbee or a book. Honestly? It’s often more enjoyable than sitting in a crowded restaurant anyway.

Want to see a movie? Wait a couple weeks after release and ticket prices drop significantly. Or better yet, wait for it to hit streaming services. Have friends over for a movie night at home with homemade popcorn, you’ll save money and probably have more fun.

Check out free community events in your area. Most cities have free concerts, festivals, museum days, and outdoor activities. Your local library probably has more free resources than you realize, from book clubs to workshops to free passes for local attractions.

4. Live In A Shared Accommodation

Housing is typically your biggest expense, so this is where you can make the most significant dent in your budget. If you’ve got extra space, why not monetize it?

Getting a roommate or housemate can cut your rent and utilities in half. That’s potentially hundreds of dollars back in your pocket every single month. Over a year? That’s thousands.

– Making Roommate Situations Work

I know, I know. Living with someone else can be challenging. But if you set clear expectations upfront, it can work beautifully. Create a roommate agreement that covers rent splits, utility payments, cleaning schedules, and house rules.

If you’re not ready to commit to a long-term roommate, consider renting your space on Airbnb when you travel. Or rent out a parking space if you’ve got one you’re not using. Every little bit helps when you’re pursuing the cheapest way of living.

On the flip side, if you’re currently renting your own place and struggling with costs, look for someone who needs a roommate. You’ll pay significantly less than having your own apartment, and you might even make a new friend in the process.

5. Tackle Your Debt Strategically

High-interest debt is like a financial vampire, slowly draining your resources month after month. If you’re carrying credit card balances or high-interest loans, you need a game plan to eliminate them.

Debt consolidation can be a powerful tool if used correctly. The idea is simple: combine multiple high-interest debts into one loan with a lower interest rate. This reduces the amount you’re paying in interest, freeing up money for other expenses or savings.

– Credit Card Balance Transfers

Many credit cards offer 0% APR promotional periods for balance transfers. If you’ve got good credit, you can transfer your high-interest credit card balances to one of these cards and pay zero interest for 12-18 months (depending on the offer).

Just watch out for balance transfer fees (usually 3-5% of the amount transferred) and make sure you can pay off the balance before the promotional period ends. Otherwise, you’ll be right back where you started.

– Student Loan Refinancing

If you’ve got private student loans with high interest rates, refinancing could save you serious money. Companies like SoFi, Earnest, and Laurel Road offer competitive refinancing rates.

But here’s the important part: only refinance private loans. If you refinance federal student loans into private loans, you’ll lose access to income-driven repayment plans, loan forgiveness programs, and other federal protections. For most people, that’s not a trade worth making.

6. Take Advantage Of Loyalty Programs

Some people think using coupons is embarrassing. Those people are leaving money on the table, and honestly, that’s way more embarrassing IMO.

Loyalty programs and digital coupons are free money. Seriously. Stores like Target and Kroger have apps where you can clip digital coupons before shopping. It takes maybe five minutes, and you can save 20-30% on your grocery bill.

– Maximize Your Rewards

Sign up for loyalty programs at stores you shop at regularly. Many offer points systems where you earn rewards with every purchase. Once you accumulate enough points, you can redeem them for discounts or free products.

Gas station rewards programs are particularly valuable. Many grocery stores partner with gas stations to offer fuel discounts based on your grocery purchases. I regularly save 20-40 cents per gallon just by using my loyalty card.

Cash-back apps like Rakuten, Ibotta, and Fetch Rewards literally pay you for shopping. You’re buying stuff anyway, might as well get a percentage back, right?

7. Learn To DIY As Much As Possible

Every time you pay someone to do something you could do yourself, you’re trading money for convenience. Sometimes that trade makes sense. Other times? You’re just throwing money away.

I’m not saying you need to become a master of all trades, but learning basic skills can save you thousands annually. And thanks to YouTube, you can learn pretty much anything for free.

– Home And Car Maintenance

Basic home repairs like fixing a leaky faucet, unclogging drains, or patching drywall are surprisingly easy once you watch a tutorial. A plumber might charge $100 for something you could fix yourself in 20 minutes with a $10 part from the hardware store.

Same with car maintenance. Changing your own oil, replacing air filters, and swapping wiper blades are all simple tasks that dealerships and mechanics charge premium prices for. A oil change at a shop might cost $50-80, but you can do it yourself for $20-30 in materials.

– Cancel That Gym Membership

Unless you’re really committed to going to the gym (and be honest with yourself here), that membership is probably wasted money. Home workouts have come a long way, and you can get an excellent workout without expensive equipment.

YouTube channels offer free workout videos for every fitness level and goal. Apps like Nike Training Club provide free guided workouts. If you want some equipment, buy a set of resistance bands and some dumbbells, you’ll spend less than two months of gym membership fees.

8. Repair Before You Replace

We live in a throwaway culture where everything is designed to be replaced rather than repaired. But that mindset is expensive and wasteful.

Before you toss something broken and buy a replacement, ask yourself: can this be fixed? Often, the answer is yes, and the repair costs a fraction of replacement.

– When Repair Makes Sense

Clothing with minor damage (loose buttons, small tears, broken zippers) can usually be repaired cheaply. Learn basic sewing skills or find a local tailor. A $10 repair can save a $50 piece of clothing.

Electronics often just need new batteries or a simple component replacement. Before you replace your laptop because it’s running slow, try upgrading the RAM or replacing the hard drive with an SSD. You’ll spend $50-100 instead of $500-1000 on a new computer.

Furniture can almost always be repaired or refinished. That wobbly chair just needs some wood glue and tightening. That scratched table can be sanded and refinished to look brand new.

– Know When To Replace

That said, sometimes replacement is the smarter financial choice. If repair costs approach or exceed replacement costs, or if the item will likely break again soon, replacement makes more sense. Don’t throw good money after bad trying to keep something alive that’s beyond saving.

9. Implement Regular No-Spend Days Or Weekends

Here’s a challenge that’ll seriously impact your budget: designate specific days or weekends as completely no-spend periods. Zero. Nada. Nothing.

This strategy works because it forces you to get creative and break the habit of mindless spending. Plus, it’s kind of fun to see how long you can go without opening your wallet.

– How To Make No-Spend Weekends Enjoyable

Plan ahead so you’re not tempted to break your no-spend commitment. Stock your fridge with groceries beforehand. Plan free activities like hiking, having friends over for game night, working on hobbies, or catching up on shows you’ve already paid for.

Host a potluck where everyone brings a dish. You’re using food you already have, spending time with people you care about, and not spending a dime. That’s the cheapest way of living while still having a social life.

If you’ve got kids, frame it as an adventure. Build a fort, have a backyard campout, do art projects with supplies you already have. They’ll probably remember these creative weekends more than the expensive outings anyway.

– Track Your Savings

Here’s the motivating part: calculate how much you typically spend on weekends, then watch your savings grow when you implement no-spend weekends. If you normally spend $150 on weekend activities and you do two no-spend weekends per month, that’s $300 monthly or $3,600 annually back in your pocket.

Start with one no-spend weekend per month. Once that feels comfortable, increase to two. The financial impact is significant, and you might be surprised how little you actually miss the spending.

Making The Cheapest Way Of Living Work For You

Here’s the thing about all these strategies: they only work if you actually implement them. Reading about the cheapest way of living won’t change your financial situation. Taking action will.

Start small. Don’t try to overhaul your entire life overnight because that’s overwhelming and you’ll probably give up. Pick two or three strategies from this list that resonate with you and implement them this week. Once those become habits, add more.

Track your progress. Write down your current monthly expenses, then track how much you’re saving as you implement these strategies. Seeing tangible results is incredibly motivating and will keep you committed when things get tough.

– Get Your Partner On Board

If you’re in a relationship, cheap living needs to be a team effort. Sit down with your partner and have an honest conversation about your financial goals and why reducing living costs matters to both of you.

Make it collaborative rather than restrictive. Frame it as working together toward shared goals (whether that’s paying off debt, saving for a house, building an emergency fund, or achieving financial independence). When you’re both committed, you’ll support each other instead of sabotaging each other’s efforts.

– Remember Your Why

On tough days when you’re tempted to abandon cheap living and splurge on something expensive, remind yourself why you started this journey. Is it to get out of debt? Build savings? Reduce financial stress? Achieve financial independence?

Keep that goal visible. Write it down and put it somewhere you’ll see daily. When you’re tempted to overspend, ask yourself: is this purchase moving me toward my goal or away from it?

Final Thoughts

Let’s wrap this up with some real talk: the cheapest way of living isn’t about deprivation or making yourself miserable to save a few bucks.

It’s about being intentional with your money so you can afford the life you actually want instead of being trapped by financial obligations.

Every strategy in this article is something real people use successfully. I’ve personally implemented most of them at various points in my financial journey, and they work. But they require commitment and consistency.

The beautiful thing about mastering cheap living is the freedom it creates. When your expenses are low relative to your income, you have options. You can take career risks.

You can pursue passions that don’t pay well initially. You can weather financial storms without panicking. That freedom is worth way more than any expensive purchase.

So start today. Pick one or two strategies, implement them, and watch your financial situation improve. Your future self will thank you for the discipline you’re showing today. And who knows? You might discover that living cheaply actually improves your quality of life rather than diminishing it.

Now stop reading and start doing. Your financial freedom is waiting. 🙂