If you think you’ve gone through the worst, trust me—I’ve been there too. There was a time in our lives when “living below our means” felt impossible because, honestly, we barely had enough to live by. I remember those years vividly—the anxiety of making ends meet, the constant juggling of bills, and the sinking feeling that we were always one step behind.
But those difficult years taught me invaluable lessons about money, gratitude, and what truly matters. Over time, I realized that living below your means doesn’t have to feel restrictive or joyless. In fact, it can open the door to more peace, freedom, and happiness than I ever thought possible.
In this post, I’ll share 10 practical tips to live below your means and still enjoy life—the same lessons that helped us rebuild, regain control, and find contentment along the way.
What Does Living Below Your Means Mean?
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At its core, living below your means simply means spending less than you earn. But it’s not about being cheap or cutting out everything you enjoy. It’s about being intentional—choosing where your money goes so you can build a life that truly reflects what matters most to you. Whether your goal is to pay off debt, buy your first home, or save for a dream trip, this mindset gives you the freedom to get there.
But it's not just about big, long-term goals. It’s also about being financially secure every day.
If you’re ready to live below your means and still enjoy life while gaining a bit more financial freedom, dive into the tips below. Now’s the perfect time to build the financial confidence you deserve— without giving up the things you value most.
How to Live Below Your Means
1. Do a Practicality Check Before You Spend
When you need to buy something, skip the pressure to impress—go for what’s practical, affordable, and built to last. Choose what works, not what looks fancier or adds status. Prioritizing usefulness over image helps you focus your spending where it matters—and stay below your means without feeling like you’re missing out.
How to make this work:
- Set a clear spending limit before shopping for things like clothes, tech, or home items.
- Compare functions first—choose items that do the job well without extra features you don’t need.
- Skip name brands when a reliable store brand or generic works just as well.
- Ask yourself before buying: “Do I truly need this, or am I buying it to keep up with others? ”
Personal finance expert Dave Ramsey says, “We buy things we don’t need with money we don’t have to impress people we don’t like.” It’s a powerful reminder that spending should focus on value and purpose—not on keeping up or showing off. Focusing on what’s truly valuable helps you avoid unnecessary spending and keeps a steadier grip on your finances.
2. Use Items Fully Before Replacing Them
Don’t replace things just because a newer version is out. Whether it’s a phone, shoes, or kitchen tools-- if it still works well, there’s no need to buy a new one. New models might look nicer or do a bit more, but what you already have is probably good enough for what you need. This mindset helps you save money, get more value from the things you already own, and live more simply.
How to make this work:
- Pause before buying—ask if what you have still does the job.
- Set a personal rule: only replace when something breaks or no longer meets a real need.
- Track how long your items last—it builds appreciation and intentionality.
- Unsubscribe from marketing emails that tempt you with upgrades.
- Shift your perspective: see older items as reliable and well-used, not outdated or lacking.
Tamara DiMattina, a sustainability and communications consultant, has not purchased anything new for over 20 years—instead, she goes for secondhand and upcycled finds. Her lifestyle shows that skipping unnecessary upgrades and making the most of what you already have can help you stay in control of your finances while living sustainably.
3. Use Your Free Time to Spend Less
Time, like money, is limited—and how you choose to use it directly affects how much you spend. The more time you spend in high-cost environments (like malls, apps, or social media), the more likely you are to spend impulsively. Flip the script by using your time in ways that don’t cost a thing but add value—like reading, walking, learning, or simply taking time to unwind.
How to make this work:
- Check where your time goes—are you in spaces that encourage spending?
- Plan low-cost or free activities into your weekly routine.
- Keep a go-to list of no-spend activities for when boredom hits.
- Turn off sale alerts and free trial pop-ups—they’re designed to trigger spending.
- Spend time socially, not financially—host potlucks, trade skills, or co-work with friends.
R.J. Hottovy, head of analytical research at Placer.ai, points out that “there is generally a correlation between longer dwell time and higher average ticket,” meaning the more time you spend at a place, the more likely you are to spend more than you planned. Being intentional about where and how you invest your time can help you align your decisions with your financial goals.
4. Do More Yourself Instead of Paying for Convenience
It’s easy to outsource tasks out of habit, like ordering in, hiring cleaners, paying for minor repairs. But many of these services quietly drain your income. Choosing to do certain things yourself isn’t just about pinching pennies—it’s about building useful skills that reduce your long-term expenses and increase your financial flexibility.
How to make this work:
- List the tasks you regularly outsource, like house cleaning, yard work, pet care, laundry, or simple home repairs. Pick one to take back and start small by doing it yourself.
- Set aside a “DIY hour” every week. Use this time for home maintenance, cooking, or organizing your life.
- Invest in tools or equipment that help you do things once instead of paying again and again.
- Learn new skills that replace paid services—like fixing a faucet, prepping meals, or sewing.
According to a Forbes survey, many wealthy people regularly do chores such as grocery shopping, cleaning, walking their dogs, or cooking rather than outsourcing everything. Despite their wealth, they choose to handle these everyday tasks themselves, showing how managing simple routines can help ease up on unnecessary expenses and keep you mindful of your finances.
5. Borrow Before You Buy
Not everything needs to be owned. From tools and appliances to formal wear and gear, borrowing lets you access what you need without the long-term cost—or clutter. It’s a smart way to meet temporary needs without jumping straight to spending, especially for items you’ll only use occasionally.
How to make this work:
- Before buying, ask: “Can I borrow this instead? ”
- Use neighborhood apps, community centers, or local libraries that lend out more than just books.
- Start a sharing circle with friends, neighbors, or coworkers for items like tools, kitchen gadgets, or baby gear.
- Offer to lend what you have, too—it builds trust and opens up future borrowing opportunities.
If you need an item for occasional use or a one-time task, borrowing can help you save money and space. If you’re not sure which items to borrow instead of buy, here’s a list to help you decide.
6. Buy Imperfect Produce to Save Big
Many stores and farmers markets sell fruits and vegetables at a discount because they have minor blemishes or irregular shapes, but they are just as nutritious and tasty. Choosing these items cuts your grocery bill and helps reduce food waste—making it a smart and sustainable way to spend less.
How to make this work:
- Look for discounted imperfect produce sections at your grocery store or market.
- Experiment with recipes that work well with these fruits and veggies—like soups, stews, and smoothies.
- Buy in bulk when imperfect produce is on sale, then freeze or preserve what you won’t use right away.
- Support local farmers who sell imperfect produce directly to consumers.
Studies show that imperfect produce has the same or even more nutritional value than perfect-looking fruits and vegetables. Going for these options can help trim your food expenses without skimping on nutrition.
7. Choose Transportation That Fits Your Budget
Transportation can take a big bite out of your budget. By choosing options that cost less and suit your real needs—not just what’s convenient—you can significantly trim down expenses and keep your spending well below your income.
How to make this work:
- Calculate your total monthly transportation costs—including gas, insurance, maintenance, and parking.
- Explore lower-cost alternatives like biking, walking, public transit, or carpooling.
- If you own a car, consider downsizing to a more affordable model or selling it if daily driving isn’t necessary.
- Plan trips and errands carefully to avoid extra driving and save on fuel.
Carpooling can save you around $1,100 a year, plus it lessens wear and tear on your car when you share the driving. Alternatively, by taking public transit instead of driving, you could save over $9,738 a year. These smart choices don’t just cut costs—they help you stay on top of your finances without making huge sacrifices.
8. Stretch Your Budget with Freezer-Friendly Meals
Buying cheap ingredients alone won’t cut it—you need meals that freeze well, reheat easily, and stay just as good days (or weeks) later. By batch-cooking and freezing the right meals, you can skip takeout, reduce waste, and make your budget go much further.
How to make this work:
- Focus on meals that freeze and reheat well—soups, stews, curries, casseroles, pasta bakes, and breakfast burritos.
- Use flexible base ingredients like rice, beans, lentils, and ground meat that work across multiple recipes.
- Set aside a day each month to cook a few big-batch meals and stock your freezer for easy, ready-to-go options.
- Portion your meals before freezing—use individual containers so you’re not defrosting an entire batch just for one meal.
- Label each container with the date and name (so you don’t forget what you froze).
In 2022, households worldwide wasted over 1 billion meals every day. If you’re looking to cut down on food waste and live more intentionally by keeping mealtime affordable and stress-free, try these simple and healthy instant pot freezer meals—ideal for busy moms looking to get the most out of their budget.
9. Set Spending Limits with a Won’t Buy List
You probably have a mental list of things you’d like to buy someday—but that list can quietly push you to spend more than you need to. Flip it. Make a list of things you’ve decided not to buy, even if you can afford them. This sets clear personal limits, eases decision fatigue, and protects you from lifestyle creep.
How to make this work:
- Write a short list of things you’ve decided to skip buying, like brand-new gadgets, extra subscription services, or a car when public transit works fine.
- Keep the list somewhere you’ll see it often, like your phone or fridge.
- Check it once a month to remind yourself that spending less is a choice.
- Update the list only when your priorities change, not just your income.
Amy Skenker-Smith, in a Forbes article, shared that during her 9-month clothing freeze, she saved at least $2,000 simply by not shopping. That money went straight into savings instead.
10. Cut Utility Costs with Scheduled Off Hours
Choose specific times during the day or week to turn off lights, unplug electronics, and avoid running water when it’s not necessary. These short breaks help you stay mindful of how much you’re using and cut down on waste that quietly drives up your bills.
How to make this work:
- Set aside specific times—like after dinner or mid-afternoon—to turn off lights, unplug devices, and avoid using water unnecessarily.
- Use timers or smart plugs so it happens automatically.
- Track your utility bills to see how much you’re saving.
- Add more power-down times once it becomes part of your routine.
According to the Department of Energy, unplugging appliances when they’re not in use can save you up to 10% on your monthly energy bill. Small habits like this add up and can help you manage your expenses more thoughtfully over time.
Final Thoughts
Living below your means doesn’t have to feel like a struggle. It’s all about finding what works for you and making small shifts that add up over time. Remember, living below your means doesn’t mean missing out—it means making room for what truly matters.
So take it one step at a time, stay positive, and celebrate your progress. Need more ideas? Check out my post on how to live frugally on one income for practical tips and inspiration!
