A few years back, I realized I was not getting much mileage with my money. Rent, bills, eating, and pictorials were devouring close to all, if not all, of my take-home pay. I got stressed and frustrated for a little while because I felt I was slaving away yet my savings account was virtually stuck.
I got down one day, looked at my expenses and thought of what I could do to cut my cost of living without having to compromise my living standard.
The other thing I noticed is that I was so overwhelmed that I couldn’t even get down to implementing those changes.
I was literally stuck.
I am not sure if that’s what you are also experiencing, but I got over that. When I did, my life got better, and I started to see changes immediately. I was saving more, living smarter, and feeling a little less friction at the end of the month.
Today, I want to help you with 9 simple and practical ways to reduce your cost of living—tips which have worked for me and will also work for you if you stay committed.
9 Simple Ways To Lower Your Cost Of Living
1. Rethink your housing costs
Housing is one of the single most expensive items in a lot of people’s budget. For me, rent was gobbling up close to half a full month’s salary.
Then I got a little innovative by looking for cheaper options:
Renters can find a roommate, move to a smaller house, or move to a less-expensive neighborhood. Homeowners can consider refinancing to a lower-interest rate and/or renting out that extra bedroom for extra cash.
Housing costs can make or break your budget, so cutting it down by just a little can have a tremendous impact on your cost of living.
Related: 10 Simple Frugal Habits to Start Today
2. Cut down on utility bills
I used to leave the lights on, leave chargers plugged in, and run the AC way longer than I should. Before I knew it, my bills were slowly creeping higher each month.
Cutting down on utility bills is one of those things where sometimes the little things matter, and sometimes the big ones:
Install energy-saving light bulbs
Switch off appliances that are not in use.
Turn your thermostat a few notches up in summer and down in the winter.
Use a few large fans and open windows.
Another excellent way to keep your costs under control is to go for prepayment electricity or budget billing plans.
Utilities are one of those expenses you don’t know are slowly bleeding you dry until you take a deep look. Still, with a little bit of effort, you can save yourself $20-$50 or more per month.
Related: Frugal Living Tips For Large Families
3. Cook more meals at home
One of the biggest leaks I had on my budget was meals eaten outside. I was shocked when I did an audit and added up the money I was spending on takeout, restaurants, fast food, and takeaways.
My friends and I saved hundreds every month by cooking at home. Spending that whole chunk of time to prep, bulk cook, and learn a couple of good recipes is a lifesaver. Besides saving money, you also eat healthy.
Try to base your packed meals on some of the inexpensive and healthy staples like rice, beans, pasta, eggs, and seasonal vegetables.
Don’t quit eating out entirely—it’s always fun. But only make it an occasional treat and not your everyday routine.
Related: How To Save Money On Groceries
4. Cancel unnecessary subscriptions
For a while, I was paying for three streaming services, a gym I rarely visited, and a couple of subscriptions I had grabbed as “free trial” and had now become paid subscriptions without me noticing.
If you are serious about reducing your cost of living, go through your bank account statement, and write all the subscriptions you’re paying for.
Ask yourself:
Do I really need this?
Can I do without it?
Is there a cheaper alternative?
If you cancel two or three subscriptions that you never use or that you can do without, you will save about $30–$60 per month. And that is money saved or better spent on other things.
Related; How to Get a Month Ahead with Your Bills
5. Buy used or use what you have
I always thought that new was always the best. But then I started to question how much money I had wasted. From furniture to clothes to gadgets and electronics, there are second-hand options all over the place and often as good as new.
Buying used is just as good and easy. You can use thrift stores, online marketplaces, or neighborhood ads or bazaars to buy all your stuff for way less.
Sometimes the best way to save money is to just use something you have instead of buying something new.
For example, I needed a standing desk. But instead of buying one, I used an old table and placed it on blocks. It worked just fine, and it cost me nothing.
Related: How To Split Your Bills In Half
6. Use public transportation (or carpool)
Gas, insurance, maintenance, and repairs also cost a pretty penny, so owning a car can get very expensive.
When I started using public transportation more, I was pleasantly surprised at how much I was saving every month.
If that is not an option, you can always car-share with friends, neighbors, or co-workers. Even carpooling a few times a week can help.
Walking or biking are also an excellent way to save money if you are up for it.
7. Shop smarter for groceries
Grocery shopping is one of those things that can quietly devour your budget if you’re not careful. I was walking into the store without a shopping list before, and of course, I ended up buying things I didn’t really need.
Grocery shopping with a list, comparing prices, and sticking to a budget have all helped me save money in that area. I usually go to local markets for fresh produce, buy in bulk, and choose store brands over fancier, more expensive names—those little tricks have all saved me a lot.
Another trick is not to go shopping when you are hungry. You will end up buying a lot more when you do.
8. Go minimal and declutter
My life was being taken over by clutter, and I didn’t even realize it until I started decluttering. Clothes, electronics, books, and other home equipment were lying all over the place. The more I owned, the more I spent on maintenance, repair, and replacement.
Minimalism is not about living without but only being intentional about what you own. Decluttering by selling things you no longer need can help you create some spending money.
I got even more grateful for what I had by living with less, and you will also save money on the long run by not constantly buying new things you don’t need.
9. Prioritize free or low-cost entertainment
One of the easiest ways I was able to reduce my cost of living was to change the way I entertained myself. Instead of eating out or going to expensive places, bars, and events, I started looking for free or low-cost fun.
Hiking, picnicking, free concerts, game nights with friends, or exploring local sights became my new go-to activities. Libraries also have free books, movies, and sometimes workshops or events.
Entertainment doesn’t always have to be expensive; you just need to get creative.
Conclusion
The trick about lowering your cost of living is that it does not mean you have to live a dull or restricted life. It’s all about making smart financial decisions, eliminating what is not essential, and paying attention to what adds real value to your life.
I had a hard time in the beginning when I first did these things because it was so uncomfortable. But after a little while, I realized I wasn’t missing anything at all. I was actually gaining more—peace of mind, savings, and more freedom to spend my money on what I wanted.
If you are feeling the pressure, start by trying just a few of these. Don’t go hard on yourself, stay consistent, and soon you will start to feel how much more breathing space you will have in life when you’re in control of your cost of living.
Save the pin for later
- How to Do a Low Buy Year - November 8, 2025
- 9 Simple Ways To Lower Your Cost Of Living - November 6, 2025
- How to Live Simply (Even If You Make a Lot of Money) - September 3, 2025
