Some people are naturally frugal. They’re savers. They spend less money and they’re happier for it.
I’m not one of those people. Which is exactly why I wanted to do a round up of the top 10 habits of frugal people — so people like me can learn from these frugal-nistas.
So, here’s a look at the top 10 habits of frugal people. Whether you’re a spender or a saver, you’ll find ways to be more frugal from this list (read: be happier and have more money).
1. Set financial goals
Frugal people value their money and want to hold onto it. Setting financial goals helps them accomplish this.
I created Dream Year (my goal-setting workbook) for my readers to set goals the right way. This will help you actually achieve your goals and feel good doing it.
Financial goals will give you a roadmap to where you want to go financially (instead of just wandering).
2. Come from a place of “do not spend”
Frugal people come from a place of “do not spend”. If they’re on the fence about something, they will err on the side of “no” (whereas the spender would do the opposite). Frugal people find ways not to spend money. They would rather see money in the bank than new clothes in their closet.
If you are spending too much money, trying saying “no” to yourself once a day. The more you do it, the easier it will become. Track your progress and celebrate your wins so you’re able to build momentum and enjoy saving money by not spending it.
I am such a spender at heart, but over time, I have learned to come from a place of do not spend. I really don’t even think about spending anymore, whereas a few years ago it was very hard for me. The more you practice not spending, the easier it becomes (like most habits).
3. Use coupons and shop deals
When frugal people spend their money, it’s at discount stores with coupons. You usually won’t find frugal people at high-end stores, where things are overpriced..
If you get in the habit of shopping at discount stores and with coupons, you can save a lot of money (this is really helpful if you’re trying to lower your expenses).
4. Always live below your means
No matter what, frugal people always live below their means. They have “financial margin” as I like to call it. There is money left at the end of the month.
Frugal people value keeping their money – not spending it. If you are not living below your means (or you’re living paycheck to paycheck), I recommend that you start budgeting asap.
If living below your means is hard for you, you’re not alone! With a little help and persistence, you can change this and get ahead. I cannot tell you how good it feels to have money in the bank and financial margin every month — it’s worth all the sacrifices it takes to get there.
5. Don’t eat out often
Frugal people are really selective about eating out. They either eat out very infrequently or they eat out very inexpensively. Either way, frugal people are not splurging regularly at fancy restaurants and more than that, they are aware of how much money they spend eating out every month.
6. Shop at discount grocery stores
Frugal people find ways to get good food inexpensively. They value good quality food but they know they don’t have to pay a lot for it.
Sometimes it takes a little creativity to find where to shop for less, but this is an excellent way to lower your expenses.
7. Buy second-hand
Frugal people don’t spend a lot of money on material things that they can get second-hand. Anything that isn’t a high priority on their value-list (like clothes) is something that frugal people will try to buy second-hand.
This is a hard habit for someone who is a spender. But like anything, practice makes perfect. If you start buying second-hand, you can get used to it over time. This is something that you have to decide whether to do in terms of your financial priorities.
8. Make financial decisions as a family
Frugal people value money, so they make financial decisions as a family. Frugal people take time to make sure everyone is on the “same financial page” and prioritize their financial health as a family above material things. Financial decisions are taken seriously and frugal couples work together to make sure they’re on the same financial page.
9. Have a plan
Frugal people have a plan. They know where they’re going. They know why they’re frugal. They know their values and make financial decisions in line with those values.
Use budget spreadsheets to create and implement a financial plan that move your toward spending less and living better.
10. Prioritize financial health over “things”
Frugal people prioritize their financial health over material things. Suze Orman says “people first, then money, then things.” Frugal people live their lives by this. Financial well-being is a top priority for any frugal-nista.
A Final Note!
The top 10 habits of frugal people that I listed above show you what you can do to live on less money and be happier doing it.
Frugal living is a lifestyle that means finding creative ways to spend less money.
Most frugal people love how they’re living. Of course there are exceptions, and some frugal people won’t do every habit listed above, but in general, this is how frugal people live.
The good news is that even if you aren’t frugal, you can use these habits to get your finances in order. If you are in debt or need to decrease your expenses, these habits can help you accomplish this.
I am happy to report that I practice all of these habits! A lot of small moves like this can really add up quickly!
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Yes, amen, Holly! It’s amazing what small habits can do – they really can make big changes!
I am naturally a frugal person, and I have to say I agree that these are habits of the frugal! We start from “spend as little as possible,” and then if something extra comes up, like a wedding or a trip, we are happy to spend accordingly. We definitely discuss non-routine expenses just so we can bounce ideas off of each other, like whether we can fix what we already have or where to buy an item secondhand.
I’m kind of envious – I wish I was naturally frugal!! 🙂
It’s kind of cool how natural couponing and shopping deals becomes over time. After a few months of doing it – and to a greater extent after a few years – my wife and I almost always look for deals before making purchases.
DC @ Young Adult Money recently posted…6 Tips for Pricing Freelance Services
Hahah good point, DC. It’s definitely “cooler” now than it used to be!
Erring on the side of “no” is such a simple, but transformative mindset shift. It reminds me of my budgeting strategy of building up my spending from zero, rather than starting at some kind of “normal” spending baseline and cutting back. The small mindset shift is really a game changer.
I think this is a really good point for spenders. I think we tend to come from a place of yes, and this one change can be really powerful (it certainly has been for me)!
I used to be so sloppy with my money, buying random things like magazines and other home decor items on a whim. All those little things eventually add up, and I have found that in the end you create more of an errand for yourself trying to get rid of it anyway.
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Yes! And notice you weren’t buying random things like a $500 handbag or a $1,500 trip — it’s the little things that randomly slip into our daily spending (like a magazine) that have a serious impact on our budgets!
I do most of those things on the list except buy second hand. But then again I don’t buy many things to begin with 🙂
Hahahah good point!!
One thing we need to work on is our eating out. There are so many yummy places to eat at when you’re RVing! 🙂
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My guess is that you save just a few extra dollars by actually living in an RV!! #socool
Coming from a family where my mom is extremely frugal and my dad likes the “finer” (more expensive) things in life, I’ve deemed myself as selectively frugal. I have a “do not spend” mentality, especially when clothes shopping, but I’ll eat out and buy boatloads of coffee. We all have our priorities, I suppose. 🙂
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So, you’re the perfect mix?! I love it!
I love all of these! I am in the same boat – I have no problem spending money but I am not in the position to do it right now. Debt is suffocating! Once you change your relationship with money though, you see things way different. Great post!
Absolutely, Lauren! I think it’s really important to talk about so spenders aren’t turned off by personal finance. You can actual be a natural spender and get your finances in order!
We’re not frugal by any means, but we do apply some of these strategies. I do know frugal people though who are so cheap they have absolutely no goal in life but saving money. Even if they won’t live enough to enjoy it and their current life sucks. We’re having a better approach (methinks): we splurge on the things we really care about and are ‘stingy’ with what doesn’t matter.
I think that’s a good point – too much of anything takes it to the extreme. I wouldn’t want to be at either extreme.
I’m glad that I do all of these! It’s essential to getting out of debt.
Jen @ Frugal millennial recently posted…Married Millennials: Should You File Your Taxes Jointly or Separately?
SOOO important for the debt slayers out there.
Besides working a budget out using my frugal ways with a family, I live by these rules! 8D Why, just today, I went out into town and bought two second hand t-shirts for this month. They were kind of pricey for new t-shirts, but they were at a very nice second hand clothing store, so they were worth it. There was one t-shirt I tried on in there that was almost $11.00 just because it was a Mudd brand t-shirt. The t-shirt looked nice on me, but just because it was a well known brand, the store marked it up even though the shirt’s material was very thin (I see what you did there with your pricing…. >_>). They do this to all of their clothing, even to their designer jeans, but the brands that are well known, but not so pricey selling new, are a great deal. But it’s a high end used clothing store, so the clothes are cut around 50-80% off anyway from a new designer price tag. ;D I love that store a lot. <3 By the way, I did not buy that almost $11.00 shirt though. D: For ten more dollars, you could buy a new shirt at Macy's, so I thought it just was not worth it for a used t-shirt.
I also bought a $0.99 card today at Winco and sent it off on the same day! Hooray for cheap $1.00 greeting cards! ^^ I live for those kind of deals! 8D But I only buy what I need from those kind of deals. I don't crazy with them. ;D
Yup, being frugal is pretty awesome. <3 I hope that more people discover frugality and it's many benefits at some points in their lives! It is so worth it! ^^
Have an amazing week! C:
Certainly a list of habits that will benefit anyone’s financial life. For us frugality was initially out of necessity. The habits and spending discipline learned and the focus on what truly made us happy turned into a simpler lifestyle. Once money became more available through career advancement it allowed savings toward financial independence. It is never too late to start the habits you have laid out.
Well said, Tommy – a list of habits that will benefit anyone’s financial life. As for necessity, that’s why I started these habits (to get out of debt). Now, they’re a part of my life and I like them!
Excellent tips! I definitely try to practice all of these. I want to do more second hand shopping instead of buying new.
Heather @ Simply Save recently posted…Paying Off $36,176 in 15 Months: Heidi’s Debt-Free Testimony
It’s hard for me to do second hand shopping because I really enjoy clothes (definitely my guilty pleasure)!!
What an awesome article, I am a frugal person but my wife is NOT. This is something she knows and is working on changing so that we can get out of debt. She has started cutting coupons and setting our grocery shopping list and going to aldis as well. All of these methods are top notch thanks for sharing
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That’s amazing, Tyler! I am not either and I’m proof that it’s possible to implement frugal habits and become financially responsible without completely depriving yourself.
I agree with these points! It’s important to live below your means, so when the unexpected occurs or the wish is there to travel money is saved up for it! I’m frugal at heart put recently we’ve been ordering in a little too much so we’re on a month of eating in purely home cooked food – see how long we can make it without spending money on take out!
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That’s amazing! I think monthly challenges like that revamp habits and really reset your mind, which is amazing!
I also am not frugal by nature. My hubby is – which is helpful! I need the balance you speak of, I can’t “deny” myself or I’ll feel terrible (and be more likely to excessively spend). We eat out once a month, planned for our “date night’ and might order take out if we score some great deals at the grocery store (Aldi’s & Costco are big savers for us). I am much more aware of my habits now and keep them in check, thankful for that, totally was not always that way eek.
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I think being aware of your habits is half the battle. Once you are aware of them, then you can learn new, better ways of doing things.
I apply these frugal habits especially #1 setting a financial plan, which is the most important of all the tips. Without it, I wouldn’t know how expenses can be handled and managed. It is really the blueprint and a guide.
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Great tips! Like you, I am not as frugal as I could be. I eat out entirely too much and it isn’t always inexpensive. I try to do better each day – which is why I brought my lunch to work today. 🙂
It takes practice! Despite that not being my natural inclination, I am proud to say I have adopted frugal habits that have helped me pay down my student loans.
Great list of tips. I really agree with the living below your means. I have been so thankful for my Emergency Fund that I put that extra money at the end of the month into when things happen like unexpected medical bills or a flat tire.
I take lunch into work everyday and my co-workers made fun of me at first, now we have lunch parties where we all bring our lunch and eat together. People see the frugal lifestyle and become intrigued after a while. It’s great fun to see other people embrace the say “no” mentality.
Thank you for sharing your list and experiences.
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That’s amazing, Cara! Sounds like you have figured this out pretty well!!