I Asked ChatGPT for the Easiest Ways To Be Frugal: Here’s What It Said
Written by
Peter Burns
Edited by
Molly Sullivan
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Being frugal can mean different things to different people. To some, it might mean you’re responsible and resourceful, while to others it could sound like you’re cheap and stingy. In terms of financial health, frugality is a good thing that can lead to less stress and a better financial future.
To determine the best ways to live a more frugal lifestyle, I consulted the AI bot ChatGPT. Here are the tips it gave for being more frugal.
Change Your Mindset
The first piece of advice ChatGPT gave is to adjust the way you think about frugality. It wrote, “Instead of viewing it as deprivation, see it as empowerment. Every dollar you save is a dollar you can put toward your goals — whether that’s travel, investing, or debt repayment.”
Instead of looking at your spending as penny-pinching, it’s better to view it as simplifying your lifestyle without sacrificing its quality. One way to force yourself to ask the right questions and think critically about making a purchase is to wait a day. Personal finance expert Rachel Cruze uses this technique to cut down on impulse buying. She suggests waiting a full 24 hours before making a purchase and seeing if the feeling of needing the product or service wears off.
Track Your Spending
ChatGPT’s second tip for being more frugal is to track your spending. It said, “Use a budgeting app, spreadsheet, or even a notebook to log every expense. After a few weeks, patterns emerge, showing where money leaks are happening.”
Tracking your spending is an excellent way to maximize your income. It’s common for people to make purchases over the course of a month without actually realizing how much they’re spending. When you track your spending, you gain awareness of your actual financial habits, which helps you make more accurate budgets.
Automate Savings
Automating your savings is a way to make sure you’re actually saving each month. ChatGPT explained, “Set up your bank account to automatically transfer a portion of your paycheck to a savings or investment account. By ‘paying yourself first,’ you ensure you save before you even think about spending.”
Many finance experts swear by this method, including New York Times bestselling author and YouTuber Ramit Sethi. Sethi encourages you to set up a paycheck routine that guarantees long-term financial success. For example, the day after payday, you should have automatic transfers that send a portion of your paycheck to retirement and savings accounts. You should also automate bill payments so you can spend the rest of your money guilt-free over the course of the month.
Use Coupons, Cash Back and Discounts
Taking advantage of the opportunities to save is another vital tip from ChatGPT. It said, “Frugal living doesn’t mean avoiding spending — it means spending smarter. Coupons, cashback apps and discounts can help you get what you need at a lower cost. Many stores have loyalty programs or apps that offer rewards for regular purchases.”
While a few coupons and discounts might not seem worth it on their own, over time, they can pay off. Taking advantage of credit card points is another way to capitalize on your spending. When you spend money with a credit card, banks will give you points that you can trade in for cash back, gift cards and travel rewards. However, keep in mind that spending more to get more points or making purchases on a credit card without being able to pay it back aren’t beneficial moves.
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