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Most people who get themselves into trouble financially start by taking on too much debt. Without debt you have more options and flexibility, but with it you’re stuck with the monthly payments no matter what comes up. It can feel like you’re constantly behind, no matter how hard you work.
If you’re in this boat, there’s still hope. By adopting a super frugal lifestyle, you can pay off a lot of debt fast. My wife and I paid off over $70,000 in student loan debt in just a few years by living very modestly and putting all extra income toward paying it down. It wasn’t always easy, and we definitely made some sacrifices—but the freedom we have now was more than worth it.
I’ve learned that small choices, repeated over time, have a massive impact. You don’t need to win the lottery or land a huge raise to change your situation. You just need a plan, some discipline, and the belief that your future is worth fighting for. Below are ten frugal living habits that helped us—and I believe they can help you too.
Track every dollar that comes in and goes out
The first step toward financial freedom is knowing where your money is going. Most of us are shocked the first time we sit down and do the math. That $5 coffee habit? The random Amazon purchases? They add up fast. By tracking every dollar you spend (and every dollar you earn), you gain a kind of financial x-ray vision. It doesn’t need to be fancy—a simple notebook, a free app, or a spreadsheet will do the trick. Once you’re aware of your patterns, you’ll naturally start making better choices. Awareness breeds discipline.
Cook at home more often than you eat out
If there’s one area of spending that quietly drains your wallet, it’s food—specifically meals that someone else prepares. Eating out is convenient, but it’s almost always more expensive than making the same meal at home. Even fast food isn’t that “cheap” anymore. The good news is, you don’t need to become a gourmet chef. Just master a few easy recipes that you enjoy. Bonus points if you cook in bulk and use leftovers creatively. Not only will you save money, but you might also feel better and eat healthier in the process.
Set limits for discretionary spending
Discretionary spending is everything that’s not essential—like entertainment, hobbies, new clothes, or random Target runs “just to look.” There’s nothing wrong with enjoying these things, but without boundaries, they tend to eat up whatever money is left over. A better approach is to set a fixed amount each month that you’re allowed to spend on these extras. When the money runs out, you wait until next month. This simple act of restraint builds discipline and forces you to prioritize what really matters to you.
Shop secondhand whenever possible
There’s a myth that secondhand shopping is only for people who are “really broke.” But that’s just not true. Smart people at every income level are discovering the treasure hunt of thrift stores, consignment shops, and online marketplaces like Facebook and Craigslist. You can find high-quality clothes, furniture, kitchen tools, toys, and even electronics—often in like-new condition—for a fraction of the price. Not only is it budget-friendly, it’s more sustainable too. Once you get over the stigma, you might even enjoy the hunt.
Cancel subscriptions you’re not using
Monthly subscriptions are the budget-killers that sneak in quietly. A few bucks here and there might not seem like much, but when you add them all up—streaming services, fitness apps, magazine trials, premium accounts—they can cost you hundreds each year. Take time to audit your bank statements and make a list of recurring charges. Ask yourself: “Am I really using this? Is it worth the price?” Be ruthless. Keep what adds real value to your life and cancel the rest. It’s an easy way to free up cash without feeling like you’re sacrificing anything.
Delay non-essential purchases with a 30-day rule
This is one of the best tricks I know to stop impulse spending in its tracks. Here’s how it works: when you see something you want (but don’t need), write it down and make a note to revisit the idea in 30 days. If you still want it just as badly at the end of the month—and can afford it without going into debt—go for it. But most of the time, the desire fades, and you’re left feeling proud that you didn’t waste the money. This simple delay creates space between your emotions and your wallet, and that’s almost always a good thing.
Get serious about side income
Cutting expenses is powerful, but increasing your income is like strapping a turbo booster to your debt payoff plan. And no, you don’t need to reinvent your career overnight. Even small, consistent efforts can add up. Whether it’s dog walking, tutoring, freelance work, delivering food, or selling unused stuff around your house—extra income gives you more flexibility. Just remember: the key is to use your side hustle income strictly for debt payoff. Don’t let it leak into your lifestyle. That’s how progress gets made.
Say no more often (even to good things)
One of the hardest parts about getting out of debt is learning to say no—to invitations, events, new gadgets, and sometimes even things that are objectively good. But if everything feels essential, then nothing really is. Saying no right now doesn’t mean you’re cheap or antisocial—it means you’re focused. Debt freedom will open up the opportunity to say yes to far better things in the future. Keep reminding yourself of the bigger goal. The temporary sacrifices you make now will feel small in comparison to the long-term peace you gain.
Practice gratitude and contentment daily
Living frugally becomes so much easier when you genuinely appreciate what you already have. It’s easy to fall into the trap of comparison, especially in a culture that constantly tells you to upgrade everything—your car, your home, your wardrobe. But here’s the truth: you already have enough. When you shift your mindset toward contentment, you’ll find that your spending naturally slows down. Try keeping a short gratitude list each day or take a walk and notice the small things that make life rich. Gratitude doesn’t cost a penny but changes everything.
Use your debt payoff as motivation, not punishment
Getting out of debt can feel overwhelming, especially in the beginning. But this isn’t about punishment or guilt—it’s about empowerment. You’re taking ownership of your finances and moving your life in a better direction. That’s something to be proud of. Track your progress, celebrate your small wins, and visualize the freedom that’s coming. Every dollar you put toward your debt is a vote for your future self. Don’t just see the sacrifices—see the story you’re building. This is your comeback, and it’s already underway.
