Sometimes, all you need to do to stabilize your finances and avoid going broke is cut your living cost. This entails looking for creative and smart ways to avoid living a too expensive lifestyle for your financial status. You would need to find the cheapest way of living without having to look like you’re poor.
The good news is that there are numerous ways to live cheaply, save money, and make sure your finances are stable.
This post sheds light on some of the best simple strategies that you can implement to cut your living costs and live below your means. It may not be easy applying these techniques, but if you care about your finances, you will do whatever it takes to make them work.
What Is The Cheapest Way To Live?
There is no strategy or technique that has proven to be the ultimate solution to cheap living. Cutting down on your costs and living cheaply can be achieved by constantly implementing a collection of different strategies and ideas.
So, to live cheaply, there are numerous tactics you must rely on. Thankfully, you’d be learning them in this post.
Does Living Cheap Mean Poor?
Living cheap doesn’t mean that you are impoverished or suffering from a financial crisis. On the contrary, cheap is what is done to prevent yourself from being poor. It’s a brilliant way of protecting your finances, especially when there isn’t a truckload of money in your yard.
Millions of people in America and other parts of the world are financially stable yet live cheaply to keep the wolf from the door.
Why Should You Live Cheaply?
There are various reasons you should learn how to live cheaply, and avoiding debt is one of those reasons. To stay away from debt for as long as possible, it is important that you cut down on your costs and start living cheaply.
Benefits Of Cheap Living
The main benefit of cheap living is that your income would be sufficient to cover available expenses. That is, as long as you live below your means, your cash flow would be enough to afford your basic needs.
For example, if you are earning $5000 a month and you do not let all your typical monthly expenses surpass $3000, you would have $2000 left; which means there is enough money to save and also cover your expenses.
Talking of saving; that’s another benefit of cheap living. Saving money in your retirement fund and emergency fund is one of the best financial decisions you can ever make, and this can be attained when you know how to live cheaply. This is very important, especially when you don’t have a ton of money in the bank.
Tips To Live Cheaply
As you look forward to uncovering the cheapest way of living, here are some helpful tips on ways to live cheaply:
1. Cancel Or Drastically Reduce Monthly Subscriptions
Many people don’t consider monthly subscriptions as something that consumes money every month. But the truth is, you can save a significant amount of money by eliminating monthly subscriptions from your budget or reducing them to maybe 1 or 2. Take your time to go through all the apps you’re subscribed to and rule out those you don’t need.
For instance, you can’t be subscribed to Netflix and Disney+ simultaneously. You’d be spending more money than you should. The best thing is to eliminate both subscriptions or choose only one since both apps are pretty related.
On the other hand, you can save more money by subscribing to a lower package. For instance, a movie streaming platform like Netflix offers various packages, depending on how much content you want to enjoy. But by subscribing to a lower package, you would still have some content to enjoy while saving money.
The same thing goes for music streaming platforms as well. It is one of the cheap ways of living without depriving yourself of some sort of enjoyment.
2. Buy Fairly Used Items
If you usually buy everything brand new, you must have a lot of money to waste. Just because you are looking for high-quality stuff doesn’t mean you must buy it brand new. From designer clothes to luxurious cars, you can purchase goods of high quality as second-hand items.
When it comes to clothes especially, you must be very smart. There are stores where you can find beautiful and better quality clothes without breaking the bank. You just need some exposure to get acquainted with such stores.
Moreover, if you are looking forward to buying a car, go for a fairly used one. The exciting thing about buying second-hand cars Is that you may be lucky to find a car that has just been recently bought brand new.
After using it for about a year, the owner might want to sell it at a much lower price. Imagine driving a fairly used car that seems like a brand new whip. You’d definitely love it.
3. Choose Low-Cost Experiences
When eating out, visiting the movies, or handing out with friends at some interesting place, make sure you don’t spend a fortune on it.
For example, instead of visiting an expensive restaurant with your friend, you can decide to prepare some nice food and head to the park for a picnic. This is you being creative while saving money, and the best part is that you’d still have a wonderful experience.
If you want to visit the cinema to see a special movie, make sure you don’t go on the day the film is released. It is usually quite expensive on the first day of release.
If you are patient enough, you could wait two weeks later. By then, the price of seeing the movie would have been reduced. This is just one of the simple tips to live cheaply and avoid spending more money unnecessarily.
4. Live In A Shared Accommodation
If you live alone and your apartment can still accommodate one more person, that’s an opportunity for you to spend less money on rent. You can share the accommodation with a housemate who would pay you for the space he or she stays. So technically, someone is joining you to pay your rent each month while you save some money.
On the other hand, you can actually be the one to live with someone in an apartment. Instead of renting your accommodation, you can look for someone with a spare room who’s willing to accommodate a housemate.
Simply move in and make arrangements with the owner of the apartment on how much you be remitting each month. It is one of the cheapest ways to live when you are not earning a lot of money to have your own apartment.
5. Consolidate Debt
Consolidating debt may not be the cheapest way of living, but it sure helps. As you constantly pay interest debt, spending money on things you want becomes tough. In fact, you won’t be able to save a penny.
To get out of this problem, it is advisable to consolidate your high-interest credit cards into one very low or zero percent APR card. This would enable you to save hundreds of dollars each year while paying your debt.
If you happen to have a high-interest student loan, one of the best decisions you can make is to refinance your debt. But before refinancing, make sure you do your due diligence. Speak with an expert to know if it’s the ideal financial decision for you and your type of student loan.
It would help if you understood that when refinancing a federal student loan to a private loan, you may be ineligible for some loan forgiveness programs and repayment options. This is something you should duly consider before refinancing.
6. Take Advantage Of Loyalty Programs
If you are worried that using coupons will make you look like a financially crippled individual, then you will keep losing the money you don’t have.
Head out and find the latest store loyalty programs that you can take advantage of. Like some of America’s biggest grocery stores such as Target and Kroger, you can have access to their apps that help you clip coupons digitally.
On the other hand, some retail stores offer customers a loyalty card used to accumulate points each time a purchase is made. You can redeem your points by getting discounts on purchased items. This isn’t the cheapest way of living; it’s just a smart technique to save money.
7. Embrace DIY Projects
You may not know the cheapest way of living or the best methods to cut down on your costs. However, make sure you consider doing certain things yourself instead of paying someone to do them for you.
By embracing Do-It-Yourself projects most times, you would be saving a lot of money. Simple things like washing your car by yourself can save you a couple of bucks.
Sometimes, you don’t need to hire a handyman to fix something in your home. Once you are sure it’s something that doesn’t require much effort and expertise, you can do it yourself. Even though it doesn’t end up perfect like a professional job, you must have saved some money.
Also, if you are the type that visits the gym regularly, you should save that gym membership fee. If you go on YouTube, you will find thousands of helpful videos on how to do all your gym stuff and exercises at home. You may just have to buy some gym equipment in the house.
8. Repair Instead Of Replacing
If you always replace every household item that gets spoilt, you would be throwing a lot of money in the air. Some gadgets in your home need some repairs and refurbishment to be good as new again. You would spend way less money on repairs than replacement. It isn’t the cheapest way of living yet; it would save you a ton of money.
Nevertheless, you may have to replace an item when the damage is pretty bad; because even if you get it repaired, it may not be durable. A replacement would be just the best option.
9. Have A No-Spend Weekend
Setting aside a certain day to not spend money is a brilliant idea to live cheaply. You can have a no-spend weekend twice a month.
Remember you tend to spend more money during weekends, unlike weekdays, because by weekends, you are probably done with work for the week and you may be looking for ways to relax and enjoy yourself. If you aren’t careful, you may end up spending lavishly by clubbing, drinking, or engaging in any activity that would require a lot of money to be spent.
A perfect way to have a no-spend weekend and still have a good time is by hosting a movie or game night at your house. Your friends could come around and spend some time while you all enjoy a homemade meal. This means you won’t have to spend any money since you are at home having some fun time with friends.
If you are married, you may not need to invite anyone over. You could enjoy the same experience with your spouse.
Even if you don’t consider this the cheapest way of living, there’s no denying that it would help you save money.
Final Notes: Cheapest Way Of Living
Finding the cheapest way of living doesn’t mean you are trying to live a poor life or avoid enjoyment. Instead, it’s just an intelligent way of managing your finances to make sure you don’t end up broke. Interestingly, you can still enjoy yourself while cutting your living costs.
You just need to think of creative ways to have fun without breaking the bank. Besides, if you are married, this is something that should be planned with your spouse or partner. With all hands on deck, it becomes easier to cope while figuring out ways to live cheaply.
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