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12 Habits That Make Frugal People Thrive Daily

In a world where spontaneous spending is often the norm, frugal people stand out with their intentional, money-saving habits. Adopting frugality means making intelligent choices that can save significantly over time. Recent trends show that frugality is not just for the financially savvy but is increasingly embraced by individuals across different demographics looking to maximize their financial well-being. 

We have researched various online forums to curate a list of 12 daily habits of frugal people that genuinely make a difference.

Maintain a Budget

The 50/30/20 rule offers a straightforward budgeting method: You allocate your after-tax income into three categories: 50% for necessities, 30% for discretionary spending, and 20% for savings and debt repayment. 

Frugal individuals use budgeting tools and apps to monitor their expenses and income closely, ensuring they stay within their means. Popular U.S. budgeting tools like Mint and YNAB (You Need A Budget) help users track their spending and manage their money effectively, leading to wiser spending and increased savings over time.

Plan Meals in Advance

Frugal individuals often plan their meals a week ahead, which helps minimize grocery store trips and avoid impulse purchases. Creating and sticking to a meal plan could trim up to 23% off your monthly grocery bill. 

Use Cashback and Rewards Programs

Taking advantage of cashback and rewards programs is a staple for frugal people. A recent study found that individuals who actively use online coupon services save an average of $1,465 annually. When you strategically use credit cards that offer rewards on everyday purchases, you accumulate significant savings and even travel perks without altering your spending habits.

Embrace DIY Solutions

Frugal people often tackle DIY projects to save on labor costs and gain a sense of accomplishment. The latest American Housing Survey shows that the average price for a professional home improvement project is around $6,352 while doing it yourself typically costs just $2,502. Whether fixing the kitchen sink or painting your room, you can save thousands and still get the job done by rolling up your sleeves and tackling these projects independently.

Cut Unnecessary Subscriptions

Regularly reviewing and canceling unused subscriptions is a crucial habit among frugal individuals. A 2024 report revealed that the average person wastes approximately $32.84 monthly on unused subscriptions. By auditing their subscriptions and cutting out unused ones, frugal people can reinvest this money into savings or other essential areas.

Buy in Bulk

Buying in bulk can significantly stretch your dollar. Shoppers often save about 25% on various items by purchasing larger quantities. If you’re shopping at wholesale clubs, the savings can be even more impressive – up to 35% compared to regular supermarkets. This strategy reduces your grocery costs and means fewer trips to the store. 

Leverage Free Entertainment

Frugal people know how to enjoy themselves without breaking the bank. They maximize free entertainment options like community events, parks, and libraries. Whether exploring scenic local trails, getting lost in a good book, or visiting a museum, there are plenty of enriching activities that don’t cost a dime. By embracing these free opportunities, they save money and create memorable experiences that enhance their lives without the hefty price tag.

Optimize Energy Use

Lighting typically makes up about 15% of your home’s electricity use. By using LED bulbs, you can light up your space for less, saving around $225 annually on energy bills. Adding other energy-saving practices, like unplugging unused devices and using programmable thermostats, can further reduce your utility expenses and keep your home running efficiently.

Buy Quality, Not Quantity

To avoid frequent replacements, spend more on durable goods like shoes and appliances. This focus on quality over quantity means they get better long-term value and pay less overall. 

Avoid Impulse Buying

In 2023, Americans spent about $150 a month on spontaneous buys. To curb these unplanned expenses, frugal individuals use a simple but effective strategy—they wait 24 hours before making non-essential purchases. This pause helps them reconsider whether the item is necessary, keeping their budget in check and ensuring their money is spent on things that genuinely add value to their lives.

Set Clear Financial Goals

Frugal individuals are skilled at setting specific financial goals to guide their saving and spending habits. They stay motivated and focused by establishing clear targets, such as saving for a dream vacation or building a solid emergency fund. These well-defined objectives act as a roadmap, helping them navigate their financial journey. This approach keeps their budget on track and ensures they make consistent progress toward achieving their financial aspirations effectively.