5 Ways the Extremely Frugal Save Hundreds — Sometimes Thousands — Per Month
You’re fairly frugal (or so you’d like to think). You make your coffee at home, along with most meals. You’re regularly on your local Buy Nothing group's Facebook page. Still, you could always learn how to be thriftier.
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To help you level up your savings strategy, MoneyLion talked to experts who have experience working with people who are extremely frugal — without taking it to behavioral extremes. These experts shared how the most frugal among us save hundreds, and sometimes thousands, of dollars every month.
1. They Think on the Macro Level
According to Clay Cary, senior trends analyst at CouponFollow, frugal people don’t cut corners or think small to save money. Skipping a random coffee here and there won’t cut it — you must think strategically to save big every month.
“To save a buck or two, they start by going after the biggest recurring costs, as that is where the real money gets saved,” Cary said. “Housing, transportation, insurance and food are among the first expenditures to audit.”
Cary acknowledged that smaller tasks like cutting streaming services can be helpful. However, he said larger moves — like negotiating rent, refinancing debt, downgrading transportation and reducing utility bills — can have a bigger impact, saving you hundreds each month.
“The single difference between extremely frugal people and everyone else is that the former regard every recurring cost as negotiable,” Cary said.
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2. They Get Creative About Their Space
Another key difference between extremely frugal people and everyone else? Frugal people get creative about using their space wisely instead of upgrading it.
Some frugal people downsize and move to walkable neighborhoods to save money. Meanwhile, others rely on their homes to generate extra income by renting out a spare bedroom, basement or even parking space.
Cary added that frugal people are also resourceful about saving on home energy bills every month.
“They install blackout curtains to cut cooling costs, unplug electronics to avoid phantom power consumption and are careful about turning on thermostats,” Cary said. “They even time their dishwashing and laundry to save on utility rates outside peak hours.”
3. They're Strategic About Buying in Bulk or Shopping Sales
One stereotype about frugal people is that they’ve never met a BOGO or half-off sale they didn’t love — and that they always carry a warehouse club membership.
But Cary said that isn’t always true: Frugal people might actually eschew those sales or club memberships, depending on their actual needs.
“People often mistakenly believe that buying in bulk is cheaper and thus tend to stock up on products,” Cary said. “However, if items go bad or get wasted, those purchases become wasteful.”
Cary said warehouse club membership cards, fast-fashion deals and impulse-spending on sales are money traps that frugal people tend to avoid. Instead, they assess whether they truly need the item and whether buying in bulk makes sense.
4. They Lower the Costs of Using Their Car
Frugal people are often known for driving the same car for a long time — maybe not quite until the wheels fall off, but long enough to get real value out of the vehicle. As Cody Schuiteboer, president and CEO of Best Interest Financial, explained it, frugal people “change the whole car ownership paradigm.”
How do they do this? They typically buy a used but reliable car, keep it long after the payment period ends and enjoy what Schuiteboer called “debt-free years of car ownership.” Schuiteboer added that “five years after the payoff can save about $39,000.”
Frugal people are also known for lowering the costs of actually using their cars. Schuiteboer said that, in addition to negotiating car payments, frugal people also pay attention to financing interest costs, depreciation and making sure they aren’t overinsured. Above all, they don’t ignore regular maintenance, helping them avoid expensive repairs down the road.
5. They Plan Their Meals
Any frugal person worth their salt is very familiar with their kitchen, preferring to cook at home instead of splurging on weekly takeout.
Schuiteboer said the real savings of meal planning come from reducing waste and enhancing convenience — not just coupon savings.
“Grocery shopping with a preset list, making dinners from available food in the fridge and cooking at home instead of ordering out usually saves between $300 and $500 a month,” Schuiteboer said.
The Bottom Line
While some people treat frugality like an extreme sport, others apply common sense to find strategic and impactful ways to cut costs and save money. At its core, extreme frugality isn’t about deprivation — it’s about being intentional with your biggest expenses.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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