Being rich isn’t about having fancy cars, a yacht, and a dozen vacation houses scattered around the globe. Being rich means managing your finances in such a way that you can live the type of life you want. And that means learning to manage your income, expenses, and investments well.
The ‘Frugal’ subreddit is a 3.8-million-member-strong online community that has been around for over 15 years. It is dedicated to frugal living and saving time, as well as money. We’ve collected some of their top pieces of advice to share with you. Scroll down to check them out.
We got in touch with personal finance expert Rick Orford for his thoughts on budgeting, plus his advice for anyone who’s not sure what to invest in. You’ll find our full interview with the author of ‘The Financially Independent Millennial,’ about why even small savings and investments are important, below.
#1 My Son Wanted A Stuffed Manta Ray For His 5th Birthday But I Didn’t Have Money To Buy One, So Instead I Converted His Old Baby Blanket Into One (Sewn By Hand)
#2 Repurposed Old Color TV From The Early 80s Into A Cat Apartment
#3 Picked Up A Used Cardigan That Turned Out To Look Much Better In The Picture Than In Person, So I Turned It Back To Yarn And Crocheted The Yarn Into A Cat Bed
How much someone should cut back on their expenses or look for additional income streams will depend a lot on their situation at home, their lifestyle and current career, their job prospects, as well as where in the world they live. For example, in the United States, consumers have been spending a lot this holiday season. The job market remains strong and inflation continues to ease, though interest rates are still extremely high.
CNN reports that retail sales rose 0.3% in November compared to October, though economists expected a decline. Retail sales rose even more (0.6%) if you don’t count gasoline sales. In short, Americans are, on average, eating out more at restaurants, as well as buying more things in stores and online.
#4 Turned An Old Trampoline Into A Greenhouse
We bought it for our kids 5 years ago. The bouncy part and netting were no longer safe, but the frame itself was in great condition. Almost threw it away but as I was taking it down I started brainstorming and this is the result!
#5 Family Thinks I’m Frugal, I Just Like To Think I’m Helping The Environment. Any Time I Get Sealed Air Bags I Make A Slit On One Side To Put My Hand Through And Pick Up My Puppy’s Waste
#6 For Christmas, I Couldn’t Afford Individual Gifts For All The Kids In My Life (I Have 24+) So I Bought A $10 Silicon Mat And A $45 Bulk Box Of Crayons And I’m Making Them All Name Crayons
As Allison Morrow recently wrote on CNN, many Americans might complain about how ‘bad’ the economy is and how high many prices are when asked. However, their actions “tell a different story” when you look at their behavior.
“Despite higher prices and all-around sour mood, American consumers have been exceptionally willing to spend money on dining out, travel, concert tickets, and all manner of goods.”
#7 A Soap Dish Made From Unused Takeout Sticks Using Glue And Thread
#8 I Was Looking Online For A Product That Would Safely Hold My House Key While Jogging. Then I Remembered That I Already Had Such A Product
#9 My Friend Was Going To Throw Away A Torn Sheet, So I Saved It, Made It Into “Yarn”, And Crocheted Myself A Basket. I Added A Bit Of Color With Rags Pilfered From My Mom’s Bin
However, across the Atlantic Ocean, the United Kingdom is ringing alarm bells about the deepening state of financial inequality in the country. The Center for Social Justice think tank recently warned about the growing gap between the haves and the have-nots.
The BBC states that, according to the report, stagnant wages, poor housing family breakdown, crime, and mental health issues have widened the gap during the Covid-19 pandemic. The disadvantaged are “no better off than they were 15 years ago.”
#10 Join Your Local “Buy Nothing” Group On FB, If You’re Able. I Joined Mine And Just Received A Kitchen Island For Free
#11 Couldn’t Get Rid Of This Ugly Stain Right In The Middle Of The Shirt. Used Some Old Dye To Make A Cool Patchy Shirt Instead
#12 Save Sunday Comics For Wrapping Presents
The danger, according to the Center for Social Justice report, is that the UK might slip back into a level of deep social divide the likes of which have not been seen since the Victorian era.
The think tank explains that for many poor Brits, “work is not worth it” because it is poor quality, offers little to no security, and gives little chance of progression. That’s why people turn to welfare.
#13 Use Nail Polish Remover (Acetone) To Get The White Rubber Part Of Vans/Converse Looking Good As New
#14 115 Meals For $131
Total meals 115. $130.60/115meals = $1.14 per meal
From left to right:
2 meals in one round container of egg salad.
5 meals of Teriyaki Ground Turkey with Chunked Pineapple and rice.
5 meals of Spinach Feta Scramble
6 meals of Creamy Parmesan Shrimp with Spinach and Bacon.
9 meals of Parmesan Pork over Zucchini Noodles.
6 meals of Bangers and Mash.
5 meals of Korean BBQ Chicken.
8 meals of African Peanut Curry.
12 meals in six containers of Tomato and Carrot Soup.
6 meals in three containers of Chicken Korma.
18 meals in nine containers of Chicken n’ Dumplings.
6 containers of Green Chili Pork Roast.
9 meals of tacos.
18 meals of steamed boa.
I put about 3-4 days of meals in the refrigerator and the rest goes into the freezer. We stay on top of eating the meals “First In, First Out” to avoid spoiling food in the refrigerator and freezer burn on food in the freezer.
#15 For Cheap Insulation, Put Bubble Wrap On Your Windows To Help Keep The Heat In. Just Spray Them With Water And The Bubble Wrap Will Stick To The Window
We asked personal finance expert Orford about the biggest barriers that people tend to have when it comes to saving money. He was kind enough to share some insights with us and stressed the importance of budgeting and even seemingly minuscule savings.
“In the media, it’s common to hear ‘cut back on the little expenses’ to save money. Having been in a situation myself where I was spending far more than I earned, I recall asking myself, ‘How could saving $4 on this or that make any meaningful change?’ The fact is, every little bit helps,” the author of ‘The Financially Independent Millennial’ told We via email.
“In my case, to be successful in spending less than I earn started with ‘paying myself first.’ This meant keeping three separate bank accounts: one for needs, one for wants, and another for savings/investment.”
#16 Save Your Butter Wrappers To Grease Your Pans. A Tip Learned From My Mom
#17 Using Toilet Paper Rolls And Old Metal Takeout Containers To Start My Seeds
#18 Long Live The Yellow Sticker. My Mum Just Got This All For Under £2
Orford explained that his ‘needs’ included necessities like rent, insurance, and groceries. Meanwhile, his ‘wants’ included going out to eat at restaurants, going shopping, and holidays—things that usually meant he was spending more than he was earning. His solution to the problem was to create a budget.
“My needs money stayed in the needs account, and I moved a portion of the remainder to my ‘wants.’ The key was sticking within the ‘wants’ budget, and not going over. I recall my in my first month with this exercise, I ran out of all my ‘wants money’ after the first weekend!That meant staying at home for the remainder of the month—and that got me thinking, ‘How can I go out more, have a life, while not over-spending.’ The answer? I found a balance. I didn’t go out as much, didn’t shop as much, and before I knew it, I had money left over in the ‘wants’ account at the end of the month. This is the monthly surplus.”
#19 Turned Damaged Vintage Levi’s Jeans Into Shorts, Hat, And Scrunchies
#20 I Needed A Very Large And Sturdy Desk And Didn’t Want To Buy It New, So For The First Time I Tried To Build Furniture. I Think It Looks Pretty Good
#21 Our Brand New Bed Broke. I Salvaged The Wood And Turned It Into A Planter
The personal finance expert told us that he then moved this surplus to his third “and most important account” meant for his savings and investments. “Growing this account was the key to becoming financially independent,” he opened up to us.
According to Orford, the ‘every little bit counts’ philosophy applies not only to reducing one’s expenses but also their savings and investments.
“I believe the money is best spent buying a home, even with higher than normal mortgages. But, the home should be affordable: so that means perhaps living with parents, or in an economical rental as long as needed until one can buy the home,” he gave some advice on what to invest in first.
#22 My Aunt Requested Crocheted Face Scrubbies To Replace Cotton Pads/Balls. She Asked For 24 So I Put Them In A Repurposed Candle Container
#23 I Finally Understand Why People Buy Large Cuts Of Meat When It Goes On Sale
Trying to be more frugal, we got 2 large top roasts for “buy-one-get-one-free” processed it, and cut it up at home ourselves. Now we have meals for days.
#24 I Made Reusable Gift Bags For The Holiday Season
“Once the home is purchased, the next step is to evaluate whether the goal is to pay it off fast or invest it in other things. Some say mortgage debt is bad, but I’m not one of them,” Orford told We.
“That said, paying off a mortgage faster results in immediate savings as the funds will go toward the principal, thereby reducing years of interest payments,” he said.
“On the other hand, investing the money into a low-cost S&P 500 index fund, for example, historically returns 10% on average. In the end, I wouldn’t fault anyone for making either choice as the money is put to work regardless.”
#25 Here’s Another $500+ Haul From My Favorite Dumpster. I Haven’t Purchased Groceries In Years
#26 I Have Been Looking To Buy One Of These For My Morning Coffee But Ended Up Making It With Items I Already Had
#27 Frugal Win. I Extended The Life Of My Grubby-Looking Converse Shoes With A Bottle Of Black Dye
The r/frugal online community covers a lot of different aspects of frugal living. As the moderator team behind the project points out, everyone has their own definition of frugality, as well as their own reasons for being frugal.
It’s something to keep in mind so that all those friendly discussions about saving cash, time, and energy don’t turn into fiery arguments. “Discuss and debate, but don’t fight over it, or be condescending to those who do not share your particular view on frugality,” the team shares.
#28 Don’t Throw Away Your “Empty” Lotion Bottles
#29 My Public Library Tells You How Much Money You’ve Saved By Checking Things Out Instead Of Buying Them
#30 I Had A Stain In My Jeans That I Couldn’t Get Rid Of, So I Covered It Up. Iron-On Patch Reinforced With Stitches
Meanwhile, it helps to remember that the online community includes internet users from all over the globe. That means that general advice and personal finance philosophies might appeal to (nearly) everyone. However, tips about specific stores, products, or deals might only be helpful to folks living in certain countries.
The more specific someone is about their particular situation, without revealing sensitive overly personal information, the more accurate the advice they receive can be.
For some more frugal living hacks, take a peek at We’s previous features. But before you do that, why not share your own tips on saving money and living frugally in the comments? We always love hearing from you, dear Pandas!
#31 Reusing Sheet Pouches As Cable Organizers And Reversed The Inserts For Labels
#32 Fellow Parents Of Small Children: Join Your Local Parent Groups
Someone with much more money than me decided to just gift the piles of new diapers (300+) their kid had outgrown. They posted it on our city’s parent Facebook group. A 25-minute roundtrip drive saved me over $100 worth of diapers. A frugal win for sure!
#33 We Get Fresh Fruit On Sale, Cut It Up, And Freeze It For Smoothies
A big bag of frozen pineapple goes for $16 – $19 where I live. We filled this big ziploc with 3 pineapples we got on sale for $1.99 each.
#34 Pro Tip: Freeze Your Old Candles For A Couple Hours To Easily Remove Excess Wax And Repurpose
#35 Made Christmas Cards This Year Instead Of Buying Them At The Store
#36 No Tree? No Problem. Lights, 3 Hooks To Anchor The Lights And Ornaments I Already Had
#37 I Repurpose Sheets And T-Shirts That Aren’t Used Any More Into Rugs And Baskets And More
#38 Turned My Dad’s Old Jeans Into A Bucket Hat And Shorts
#39 I’ve Been Using This Rock As A Lint Roller For The Past Two Years
Didn’t have a lint roller, saw the rock and its rougher edges, and just pictured it helping a little, but it did a better job than I thought! We use it as decoration when it’s not a lint roller.
#40 Reminding You All To Keep Your Eyes Peeled For Side Of The Road Freebies/Yard Sales. This Particular Popcorn Maker Goes For $250 And Works, Got It Completely Free
#41 My Belt Broke At Work Several Months Ago When I Only Had $4 In My Account. Shortened A Ratchet Strap To Improvise. Best Belt I’ve Ever Had. Unlimited Adjustment Options
#42 The Name And Store Brand Tomatoes Literally Come From The Same Factory. $1.19 vs. $0.79
#43 It’s Getting Hot In Phoenix, Az – $4 Length Of Cloth From Goodwill For A Sun Barrier On My Patio – It Keeps My House 10 Degrees Cooler
#44 Made A Scrubber With Leftover Materials. Made This From Leftover Flannel Fabric, Old Bra Inserts, And Netting Fabric In Under 10 Minutes With My Sewing Machine
#45 Wrapped Presents With Reusable Wrapping “Paper” This Year
#46 Probably An Obvious One, But I Save The Fruit My Kids Don’t Eat In A Ziplock In The Freezer And Use It For My Weekend Smoothies
#47 We Live In Canada And Get Our Milk In Bags. After We Are Done With The Milk, We Wash And Reuse The Small Bags For Snacks And Other Small Items Instead Of Buying Ziplocks
#48 I Saved $70 Off This Grocery Haul By Using Coupons And Shopping Sales! I Only Spent $120 And It’s Even More Than What It Looks Like In The Picture
#49 My First Time Using The “Too Good To Go” App At One Of The High-End Donut Shops In My Area. 45$ Value For Roughly $16
#50 I Used The Traditional Japanese Art Of Kintsugi To Repair My Cracked Toilet Seat Instead Of Throwing It Away
