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Living frugally means spending less than you earn. Frugal living can involve elements of a simplified lifestyle and eco-friendliness.

Fortunately, living a frugal life doesn’t mean giving up all your favorite things. By adopting some basic money-saving moves, you can save cash without a lot of effort or sacrifice.

Read on to learn eight frugal living tips that will help you streamline your spending.

8 Essential Frugal Living Tips

Ready to learn how to be frugal? The following strategies will help you live frugally and save money — without giving up all the fun and rewards in your life.

1. Trim Fixed Expenses

The expenses you pay regularly come in two general varieties: fixed expenses vs. variable expenses.

With fixed expenses, you pay the same amount every month. These expenses are consistent, and they include rent and insurance payments. Variable expenses are those whose amounts aren’t fixed. They change, based on certain variables such as your behavior or the weather. Your gas and electric bills likely cost more when the weather is very hot or very cold, for instance. Your water bill changes depending on how much water you use.

Cutting back on fixed expenses with their regular, consistent costs can lead to regular, consistent savings. There are a number of ways to do this, some more radical than others.

For example, moving to a less expensive neighborhood or splitting bills with a roommate might cut your rent in half; deciding not to buy a car and use public transportation instead can eliminate a monthly car payment and insurance cost, as well as parking, maintenance, and gas. These kinds of major lifestyle changes can take a lot of effort to set up at the start, but the payoff is months or years of significant savings without too much ongoing effort.

There are plenty of ways to cut fixed expenses without making such big shifts to daily life, however. For instance, switching to a less expensive cell phone carrier can lower your monthly bills, as can giving up a pricey gym membership in favor of running. To save on streaming services, you could eliminate one or two subscriptions that you don’t use as frequently.

Cut back on spending on a few of these things and the savings can really add up.

2. Gear Up Your Grocery Game

Groceries count as a variable expense because the cost of your grocery bills changes. Fortunately, there’s a big potential for savings when it comes to stocking up on food each month.

Some smart ways to save on groceries include:

•   Choosing discount grocers and chains. Aldi, Lidl, and Walmart are known for their low prices and value, particularly when compared to upscale grocery chains.

•   Coupon clipping can lead to substantial savings. These days, apps like Ibott, Flipp, and Checkout 51 make it easy to score savings on the items you’re already shopping for. Also, be sure to check the digital coupons at your grocery store of choice and clip them regularly (you can do this through your grocery store’s app).

•   When cooking meals, make extras to eat for lunch or dinner the next day. If fresh vegetables are too expensive, consider frozen veggies, which are generally just as nutritious and cost less. Use healthy and budget-friendly ingredients like beans to add protein to meals. Buy generic and store brands rather than well-known more expensive brands to save even more. Strategies like these can help stretch your grocery store dollars so you’ll have extra money to stash in your savings account.

3. Decide to Do It Yourself

Maintaining the things you own can be expensive. For instance, going in for an oil change vs. doing it yourself can be a pricey undertaking. And calling a plumber when the sink is clogged can cost a lot more than doing it yourself.

Home improvement skills can easily help save money over the course of a lifetime. And learning how to fix things is easier than ever these days. YouTube is full of free video tutorials that can walk you through everything from fixing a dishwasher that won’t drain to rotating your tires.

Other high-cost services to consider DIYing: mani/pedis, facials, pet grooming, landscaping, housecleaning, moving, and more. Basically, anytime you could spend money on hiring a professional, think seriously about whether you really need the help. By tackling it yourself, you won’t have to deplete the funds in your checking account.

4. Enjoy Free Entertainment

While some events are worthy splurges — like a once-in-a-lifetime concert — it’s also important to consider all the free forms of entertainment at your fingertips. For example, your local library may offer streaming movies along with books and audiobooks (or try services connected to libraries, like Kanopy and Hoopla), and many museums offer cost-free admissions on specific days of the week or month.

Even the national parks offer free admission from time to time. Free national park entrance days vary slightly from year to year, but generally include Memorial Day in May, Flag Day in June, and Veterans Day in November.

5. Take Frugalism With You Wherever You Go

Speaking of national parks: Travel is another big ticket item as far as discretionary expenses are concerned. Seeing the world can be enriching — and it doesn’t have to cost a fortune.

Finding ways to be a frugal traveler, such as choosing budget-friendly destinations and scoring the cheapest flights possible, can mean saving money without sacrificing this major life experience. You might even try a home swap or being a house-sitter in a foreign country to make your journey as affordable as possible.

Reuse and Recycle

The idea of reusing and recycling can go in many directions. It can mean buying a reusable water bottle and filling at home and at work instead of buying pricey bottled water and contributing to the global single-use plastic problem.

It can mean offloading your gently used items (laptop, clothing, kitchenware) and making a little bit of spending money. You can also donate these things to charity, which could help you reduce your taxable income if you can claim them as charitable deductions on your taxes.

Another way to reuse items is to find them at your local thrift shop, or pick them up for free (or low cost) on Facebook Marketplace. And it can mean recycling items for money like bottles and cans when you return them to your grocery store.

Not only are these actions wallet-friendly, but they are also planet-friendly.

7. Split the Cost

One good way to be frugal is to share the expenses of daily life. For instance, you might get a roommate or move in with a friend to take your rent and utilities down a notch. If you shop at warehouse clubs, the two of you could split the mega sizes of food and other items, which will save you both money.

8. Use Credit Sparingly

It’s no secret that credit card debt is high-interest debt, and you likely don’t want to be wasting money on major interest charges. Create a budget and stick to it, and try to pay in cash or with your debit card whenever possible. Work hard to pay off your credit card bill in full every month so interest doesn’t keep accumulating.

Benefits of a Frugal Lifestyle

Need more encouragement and incentive to live frugally? Consider these upsides.

Eco-Friendly

When you live frugally, you often minimize waste. You plan your meals and don’t toss as many leftovers and unused ingredients as you would otherwise. You might walk rather than take an Uber. You may reuse shopping totes vs. paying for a bag every time you shop.

If you really get into reducing, reusing, and recycling, you could even find yourself living a zero-waste lifestyle. That can keep more dollars in your pocket and lower your environmental impact, which can be doubly rewarding.

Save Money

Living frugally is all about saving cash. You can bring down such major costs as rent, food, utilities, and transportation with frugal living, which can benefit your bank account.

You can also learn how to rein in your discretionary spending. Instead of dishing out a couple of hundred dollars on a concert ticket, you might find great live local music for free at a town park or a local bar.

Pay Down Debt

When you live frugally, it can give you the means to pay down debt, especially the high-interest kind, like credit-card debt. That means more money is freed up for you to save for your short-term and long-term financial goals.

Live on a Small Budget

Living frugally means you have a budget that is working and helping to keep your finances on track. You likely know your spending limits, have a handle on your debt, and have a clear plan in place to hit your long-term goals. You don’t have a lot of expenses to worry about and wrangle. This can give you peace of mind.

Is Frugal Living Sustainable Over the Long Term?

Frugal living requires discipline, but once you get into a routine, it becomes easier, making it a sustainable lifestyle over the long term.

Learning how to stick to a modest budget can help you live a simpler life and avoid lifestyle creep (when your expenses rise along with your salary over time). By not always upgrading to a bigger house, fancier car, or more lavish summer vacation, you can enjoy the balance and security of frugal living, and have the satisfaction of knowing you’re saving for your future.

What Does Frugal Mean for Your Money?

Being frugal is good for your money and your financial well-being. Here’s how:

•   Adopting frugal habits and creating a savings plan are ways to improve your financial health. Cutting back on day-to-day living expenses can mean more money to set aside for major life milestones, like owning a home or having a baby.

•   One of the most important first steps toward frugality is getting financially organized. Creating a budget and tracking your finances are critical moves. For example, monitoring your bank accounts a couple of times a week can help you see how your money is coming in and going out.

•   Living a frugal lifestyle can also direct more money towards realizing your long-term financial goals and building wealth. Whether that means saving for a child’s college education or for your own retirement, by cutting back on spending now, you can help ensure a better future.

The Takeaway

Living frugally is a way to trim your expenses, stay out of debt, and put more money toward your short-term goals and long-term financial aspirations. It also can be a lifestyle that simplifies your daily habits and is friendly to the planet. With frugality, you may find that some of your money stress decreases, too. You’ll have less debt and you can save more.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What does frugal actually mean?

Frugal means being careful with money, spending wisely, managing your expenses, and maximizing value. Frugal people often live a simpler lifestyle. So if you are living frugally, you are probably sticking to a budget, saving for future goals, and not indulging in too many luxuries.

What’s the best example of frugal living?

Good examples of frugal living include cooking from scratch, shopping at discount supermarkets and using coupons to purchase groceries, doing home repairs yourself, and walking or biking when possible rather than using a car.

Why is frugal living more popular these days?

Frugal living is more popular these days due to the higher cost of living, including higher costs for food, gas, housing, and other essential items. Many people are also more environmentally conscious and trying to consume less and reduce waste. For these reasons, people are looking for ways to reduce their expenses and live frugally and more simply.

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SOBNK-Q226-149

If you’re making student loan payments every month, you’d probably like to know how to pay off your student loans quickly. Not only will paying off student loans faster reduce your debt, it can also help you save money.

Fortunately, there are a number of strategies you can use to speed up repayment. Read on for tips on how to pay off your student loan fast so you can free up your budget and focus on other financial goals.

7 Strategies to Pay Off Student Loans Fast

There are different methods for paying off student loans quickly — what works for you depends on your specific situation. You may want to try combining a few of the following seven approaches for managing student loan debt, for instance, or focus on just one.

1. Putting Extra Toward the Principal

One way to get ahead of student loan debt is to pay more than the monthly minimum owed. There are no prepayment penalties for federal or private student loans, so it can be an efficient method to shrink your debt.

As a bonus, when you put extra money toward the principal loan balance, you’re also reducing the total amount of interest you pay over the life of the loan.

If possible, put some additional funds toward your student loan payments each month. If that’s more than you can afford, you might consider increasing your payments every other month or quarterly.

Just make sure that the extra payments are applied to the loan principal. Contact your loan server and tell them to allocate your payment that way.

2. Making a Lump Sum Payment to Pay Off Student Loans Faster

Another option to consider is making a lump sum payment with any “found money” you have. This could be a tax refund, a monetary gift you get for a birthday or other occasion, or a bonus at work. Use any windfall you receive to double down on your debt. Again, instruct your loan servicer to apply the payment specifically to the loan principal.

Making a lump sum payment can help reduce interest and even help shorten your repayment timeframe. You can use a student loan payoff calculator to see how this method might help you pay off your student loans faster.

3. Finding a Side Hustle

Creating an additional source of income and putting those funds toward your debt could also help you pay off your student loans faster.

For example, if you’re crafty, you could try selling your creations on an online marketplace. If you’re a photographer, writer, or editor, you could look for a freelance gig. Or you could do tutoring or dogsitting on evenings and weekends. Once you get your low-cost side hustle going, the additional income can be regularly dedicated toward extra student loan payments.

4. Getting Help Paying Off Your Loan

You may be able to speed up student loan repayment with a little help from your employer, your state, or by doing volunteer work.

Getting help from your employer. Some employers offer a benefit called loan repayment assistance, in which they help employees repay their student loans. The employer might contribute up to a certain amount, and the employee may have to work for the company for a specific period of time to be eligible.

Other employers have programs that incentivize student loan repayment. For example, when an employee makes their regular monthly student loan payment, an employer can send an additional contribution toward their loans. The employee’s student loan gets paid off faster, and they save money on interest.

Seeking out Loan Repayment Assistance Programs. If you’re eligible, a Loan Repayment Assistance Program (LRAP) can provide funds to help you reduce your student loan payments. Some states, organizations, and companies may offer LRAPs, especially if you work in certain fields like health care or education. LRAPs often include a requirement that you work in your eligible job for a certain number of years, typically in public service.

Volunteering. Some volunteer opportunities might help ease your student loan debt. For example, skills-based volunteers and frontline workers for the Shared Harvest Fund, a mission-driven organization that’s dedicated to wellness and service, can get help paying for their student loans if they match up with a nonprofit organization that needs their talents.

💡 Quick Tip: Federal parent PLUS loans might be a good candidate for refinancing to a lower rate.

5. Creating a Budget to Free Up Funds

Setting up a budget can help you track how much money you have coming in every month compared to how much you’re spending. Once you see where your money is going, you may find expenses to cut out or reduce and then direct the money you save toward your student loans.

Start by jotting down your monthly income after taxes. Next, calculate your monthly expenses, including rent, utilities, food, streaming services, and loans like car loans and student loans. Compare your income to your expenses, and then see where you can trim.

For example, bringing lunch to work and making meals at home could help cut down on takeout and restaurant costs. Eliminating a streaming service you don’t often use could save you money, as could giving up your gym membership and taking up running instead. When you identify discretionary expenses to cut back, you can add the money you save to your student loan payments.

6. Rolling Out the Debt Snowball Method

There are specific debt repayment methods you can consider as well, including the debt snowball method. Here’s how it works.

First, take a look at your loans and focus on the balances. While you should be making at least the minimum monthly payment on all your loans, the debt snowball method has you put any additional money toward the loan with the smallest balance first.

Once that loan is paid off, you use the money you were paying on the old loan payment amount and roll it over to the next smallest debt. The idea is to continue using this method until all of your loans are paid off. Each time you pay off a loan, it feels like a win that helps you see the progress you’re making and motivates you to keep going.

7. Refinancing or Consolidating Loans

When you refinance student loans, you pay off your existing loans with a new loan from a private lender. Ideally, the new loan will have a lower interest rate, which could lower your monthly payments, or result in more favorable loan terms.

Some borrowers might be interested in combining refinancing with saving. With a flexible method like SmartStart refinancing from SoFi, for instance, borrowers pay only the interest on their student loans for the first nine months, and then they can put their extra money into a savings account or toward other expenses like rent.

Just be aware that the total repayment over the life of the loan may be slightly higher with this method than it would be by making standard principal-plus-interest payments from the beginning.

Also, it’s important to understand that refinancing federal loans makes them ineligible for federal benefits like income-driven repayment plans and federal deferment.

If you have federal student loans, you could consolidate them into a Direct Consolidation Loan, with one monthly payment. The new, fixed interest rate will be the weighted average of your existing interest rates rounded up to the nearest one-eighth of a percentage point.

Consolidation can lower your monthly payment by giving you up to 30 years to repay your loans, but a longer term means more payments and more interest. That’s something to keep in mind if you’re considering student loan consolidation vs. refinancing.

The Takeaway

There are several methods you can use to pay off student loans quickly, including making extra payments toward the loan principal, earning extra income with a side hustle, consolidation or refinancing, and loan repayment assistance programs. One or more of these strategies may be the ticket to chipping away at your student debt faster.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

How can I pay off my student loans quickly?

One of the fastest ways to pay off student loans is to put extra money toward the principal balance on your student loans whenever you can. Not only will this help you reduce the total principal you owe, it will also save you money on the total amount of interest you pay over the life of the loan.

Is it smart to pay off student loans early?

Paying off student loans early can be smart. Paying down your debt faster can help you save money overall and reduce the total amount of interest you’ll pay over the life of the loans. Paying off your loans quickly can also allow you to put more money toward your other financial goals, such as a down payment on a house or saving for retirement.

How can I find extra money to pay down student loans?

You can find extra money to pay down student loans by using your tax refund or a bonus you get at work and applying those funds to your student loan debt. You could also consider taking on a side hustle to earn extra income to put toward your loan payments.

What are some other solutions to student loan debt?

Other solutions to reducing student loan debt include creating a budget to help free up funds for your student loan debt; paying more than a minimum balance on your student loans whenever you can and putting that money toward your loan principal; and checking to see if your employer or state offers student loan repayment assistance.

Should I refinance or pay off student loans faster?

Whether you choose to refinance or pay off your student loans faster is up to you — each borrower should make a decision based on their own financial situation. That said, it is possible to do both. Refinancing may help you pay off your student loans faster if you qualify for a lower interest rate, which can lower your monthly payments, or if you shorten your loan term. Just be aware that a shorter term will likely make your monthly loan payments bigger.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Not all repayment options may be available for all loans. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is current as of 3/2/2026 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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