10 Signs You’ve Mastered the Art of Frugal Living
Written by
Jordan Rosenfeld
Edited by
Elizabeth Constantineau
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Many people strive to be frugal — minimizing expenditures, avoiding wastefulness, and living well below your means. Yet frugal living often means making sacrifices and being extremely strict with your spending habits. This can be challenging to achieve and even harder to maintain.
“I would suggest that frugality is the process of making deliberate decisions in order to save money in a responsible and sustainable manner,” said Ethan Keller, financial expert and president of Dominion, a wealth management service.
If you’re unsure whether your lifestyle qualifies as frugal, experts explain 10 signs that you’ve already mastered the art of frugal living.
You Budget Consistently
One key sign of having mastered frugal living is the consistent practice of budgeting, says Josh Michaels, a certified financial planner and the CEO and founder of Money4Loans.
“Individuals who live frugally aren’t just randomly cutting costs; they have a well-planned budget and adhere to it meticulously,” he said. “This budgeting not only includes tracking daily expenses but also involves planning for larger, long-term financial goals.”
You Prioritize Needs Over Wants
Another indicator is the prioritization of needs over wants, Michaels said.
Frugal individuals can clearly distinguish between essential expenses and discretionary spending, he explained.
“They are adept at resisting impulse buys and often wait for the right time to make purchases, such as during sales or with the use of discounts and coupons,” Michaels said.
You Actively Save Money
Frugal living also involves an active approach to saving money, Michaels said.
“This doesn’t just mean putting money into a savings account but also finding creative ways to reduce costs, such as DIY projects, repairing instead of replacing items, and maximizing the use of resources they already have,” he said.
You Have Little Consumer Debt
Moreover, frugal people often have little to no consumer debt.
“They tend to use credit cards judiciously and pay off their balances in full to avoid interest charges,” Michaels said. “Their focus is more on building savings and investing, rather than accruing liabilities.”
You Opt for Sustainable Options
Mastering frugality is evident in lifestyle choices that reflect value-driven spending, Michaels said.
“This could mean choosing more affordable yet sustainable options, like biking to work instead of driving, or cooking at home more frequently instead of dining out,” he said.
You Make Intentional Spending Choices
Living a frugal lifestyle is all about making intentional choices when it comes to spending, according to Mikayla Reynolds, owner of Cash Offers.
“Frugal individuals carefully weigh each purchase, considering whether it fulfills a genuine need or is just a fleeting want,” she said. “Their focus is on value and longevity rather than succumbing to the latest trends.”
You Prioritize Functionality
Many, though not all, frugal people have a minimalist approach in their homes, Reynolds said, where quality and functionality take precedence over unnecessary extravagance.
“Instead of accumulating possessions, they prefer a curated selection that stands the test of time,” she said.
You Do It Yourself
Frugal living often involves a do-it-yourself mentality, Reynolds pointed out. “Whether it’s tackling home repairs, gardening, or basic car maintenance, they prefer a hands-on approach to cut costs through self-sufficiency.”
Nathan Jacobs, senior researcher at The Money Mongers, added that “frugal folks get creative with what they already own-turning leftovers into new meals, fixing up wobbly furniture, extending the life of old tech.”
A frugal mindset, Jacobs said, is not just about saving money but about maximizing value from possessions.
You’re Saving 15% of Your Income
A key hallmark of a frugal life is saving 15% or more of your monthly income, according to Scott Smith, a personal finance expert, debt consolidation attorney, and founder of DebtReduction101.com. “If they have passed the 25% mark, they have hit frugality level — expert.”
You’re Not Buying Everything New
Smith said that truly frugal living often includes holding onto material assets and goods as long as absolutely possible, getting maximum use out of them.
“Frugal people are still driving the same car that was plastered with ‘Just Married’ signs, and, for bonus points, they are able to pass it down to their first born child at driving age,” he said.
Michaels concluded: “In frugality, the richness isn’t in the bank account but in the mastery of financial self-control and value-driven decision making.”
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