I’m a Frugal Millennial: Here’s How I Stay Focused on Saving Money
Written by
Jake Safane
Edited by
Carly Brashears
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Millennials are often maligned as a generation focused more on avocado toast splurges than fiscal responsibility. But the stereotype isn’t always true. Plenty of millennials have proven they can budget. And a majority of people in this generation are now homeowners, according to RentCafe.
But if you haven’t figured out how to be frugal yet, there’s still time to turn things around. Millennials still likely have decades of life ahead of them, and just because your 20s might have been full of overspending, that doesn’t mean you can’t find ways to enjoy life while saving money as you get older.
Sangeetha Sankaran, technical product manager at Atmos Financial, is a good example of how a millennial can live frugally, even while having fun living in New York, one of the most expensive cities in the world. Here’s how to do it.
Question Spending
Being a frugal person doesn’t have to mean saying no to everything, but it does tend to require discipline.
“I consider myself frugal because I live within my means and pay close attention to where my money goes,” said Sankaran. “I review my balances daily, my budget weekly, and my long-term goals monthly,” such as saving for part-time graduate school and eventual home ownership.
To stay focused on these goals and save money, it can help to question what you’re buying and why you’re buying it. Maybe you’re spending too much on shopping because you’re bored, for example, not because you can’t find better deals.
“I curb impulses. I question calls to spend a lot of money that offer little utility and that don’t align with my values,” said Sankaran.
But that doesn’t mean she doesn’t spend money. It just has to be on something she cares about. For example, she’s hiked Patagonia and ran the New York City Marathon.
“There will be people who push you to buy all new running gear. Your existing leggings and sports bras are good enough. People will say you need to get a new backpack for hiking. You might have a friend who will loan you theirs,” said Sankaran.
“When the answer seems like ‘you have to spend a lot to do XYZ thing,’ push back on it until it seems like it’s the only path,” she added. For example, “you do need your own shoes and enough weekend free time to marathon train, no two ways about that.”
Indulge in Free or Low-Cost Activities
To save money, you might have to switch the types of activities you typically do or the things you typically buy, but that’s not necessarily a bad thing. By questioning your spending and considering how that aligns with your values, you might find better alternatives that also cost less.
“Most of us ignore what we have and want what we can’t have,” said Sankaran. “Write it all down, and you’ll probably realize like, ‘Oh, I have a bike I don’t ride that much’ or ‘Oh, I used to love singing in high school and college and don’t really make time for it now. I wonder if there’s free/cheap opportunities near me to sing with others,’ or ‘Wow, I have a lot of free time that I usually end up filling up with getting drinks or online shopping. Could this time be spent doing high-value activities like video chatting a sibling or long-distance bestie or building community locally?'”
As you get curious about how you spend your time and how you can put your existing possessions and interests to use, you might find free or low-cost activities that help you save money.
In Sankaran’s city, “every neighborhood has running clubs, pickup pickleball teams, book clubs, or dog meetups that get together for free. Whatever your hobby or passion, you can find many with others who are passionate about that activity too.
“Moreover, I really believe in community building. That can look like volunteering at a local race and being a stranger’s cheerleader, or delivering meals to the elderly with one of many nonprofits doing this essential work, or supporting local candidates for office,” she added.
And as for physical possessions, there are plenty of opportunities to save money via used items.
“I look for free and low-cost alternatives when I can — like borrowing a friend’s shoes before going on a hike or buying a book I need for upskilling at work secondhand online,” said Sankaran.
Make the Most of Your Circumstances
While living in New York and working a flexible, remote job gives Sankaran the ability to enjoy many activities, you can still have a fulfilling frugal life in many other circumstances.
“I actually do spend a lot of time indoors by myself too, especially in the winter,” she said. “So, life tends to look like: checking out books from the library, trying to learn a language on YouTube, or making fun recipes I saw on TikTok.”
Also, consider the upsides of being frugal, rather than making it feel like you’re punishing yourself.
A literal advantage of being frugal can include having less clutter, said Sankaran. Frugality can also help you focus on “relationships that are more meaningful and centered around shared values,” she said.
Plus, being able to budget and not get swept up by spending can help you navigate difficult financial periods.
“I was laid off last year, and living within my means for so many years helped me deal with that tough time,” said Sankaran.
Overall, being a frugal millennial doesn’t have to be overly complex or restricting. If you focus on what you care about and look for free/low-cost alternatives like Sankaran does, you can save money while enjoying life.
More From GOBankingRates
