We all want to save money, but sometimes we just don’t know how to save more money than we already are. We don’t want to take the next step in frugal living because we know that we will be looked upon as crazy. However, sometimes you need to save an extreme amount of money in a very short period of time. You might be suddenly faced with only half of your normal income. You might find yourself with a lot of medical bills or a large repair bill.

You might also desire a different kind of life. You may want to prepare, to homestead, or just live a simpler and less stressful life. Most people don’t think they can afford to do those things because they are so tied down with debt or other obligations. However, most people can if they re-examine their spending.

In other words, you will need to practice a level of frugality that most of us don’t want to think about. I call this poverty living. We are all living (or should be living) at a level of frugality that seems a little tight, but sometimes we need to get a lot tighter.

What does poverty living entail? Basically, living as broke as you can while still covering the necessities. Some of you, like me, have already done this before and never really had a name for it. While some of you may already live like this and have no other way to save more money, others may feel the need to do this just to get their budget and finances back under control. You may also feel the need to do this because you are facing an uncertain financial future. And as I mentioned before, you may have some large bills to pay.

How does poverty living and saving work? How can you start living this way?

1. Take a long, hard look at your finances. You need to take a notebook and write down every single bill, expense, and spending you do now. You also need to consider any future expenses you know you will need to pay. This is the time to get really tough with yourself and/or each other as a couple. What items in your budget can be eliminated, paused, or reduced? Do you have expensive habits? Are you extravagant gift givers? Are you kids in too many activities or have expensive hobbies? This is the time to examine everything, including your lives. If you need or want to live as frugally as possible, sacrifices will be necessary, both short-term and possibly long-term.

2. Get your grocery spending under control. Some of you will say that you don’t spend a lot of money on groceries or at least as much as your friend spends on her groceries. You need to change your thinking. You are practicing a whole new level of saving, so you need to focus on yourself. You need to carefully look over your receipts. You need to start making a list and stick to it and the budget. You need to plan meals around basic foods, what you are growing, and what is on sale. Going without a list and with no plan will make for a miserable time for you and your budget. You need to make the time to do this. You can also start a price book to get an idea of when an item is cheapest, where the best price is, and how often it is on sale.

3. Meal plan and plan your meals around cheap, basic foods. If you are trying to save money, having fancy meals of salmon, steak, and lobster is not possible. You need to keep your meals as frugal as possible. You may not be able to eat as much meat as you like, either. Casseroles, one-pot meals, and soups will feed a lot of people cheaply. Make sure you also plan for breakfasts and lunches. If you think you will get sick of the same foods all the time, you may just need to suck it up. You are trying to save money. You can find many ways to jazz up your meals without getting bored, but you will need to be creative.

4. Sell what you don’t need. If you have four vehicles, only two are in working condition, and you only have two drivers, sell the two non-running vehicles. You can sell vehicles as is as long as you are honest about what is wrong with them. The same with the stuff you have in the garage, house, shed, and anywhere you are stashing things. Now is the time to make a little extra money! If you don’t need it, get rid of it. Some things will only have a purpose once or twice a year and that is okay. However, your kids’ outgrown toys, clothes, and equipment are not doing you any good sitting in a closet. Neither is the sporting equipment that you used ten years ago, but think you will use again someday.

5. What are the necessities for you and your family? What do you really need? We all think we need things, but most of the time we can live without them. Sacrifices will need to be made in order for this to work. A good deal of what we think is necessary turns out not to be after living without it for a few months. You just need to really examine everything you purchase or use and ask yourself if you can live without it.

6. Unless you are getting it for free, no eating out, no going out on dates/nights out, no alcohol, and no other bad habits. They aren’t necessary, no matter how much you think they are, so now is a good time to get rid of the bad and expensive habits and any other costly fun things. You may experience some withdrawals, but the suffering will be worth it for the money saved and possibly improved health. You can also add soda pop, candy, and other “treats” that we think we need for ourselves. We don’t need them and we would be better off without them.

7. Write down every penny spent, earned, and examine every purchase. This is a learning process. You will make mistakes, but to know where your money is going, you need to stay on top of your spending. Ideally, you do not want to spend any money, but life is never ideal. However, by writing down every purchase and expense, you can easily see where your money is going and where it shouldn’t be going. From there, you can make the necessary corrections to save even more money. And sometimes, just the thought of having to write down the expense will stop you from purchasing the item. No one wants to write down that they spent $1.29 on a candy bar.

8. Figure out what the true cost of things is. You may think your child needs to be in activities like basketball, dance, and other sports. You may think it is only costing you $40 for the registration fee. However, you are also spending money on additional gas for the vehicle, vehicle wear and tear, your time, possibly fast food to feed the family, special clothing and shoes, and more. That $40 is more like $400 by the end of the season. While I believe kids should be involved in a few things, sometimes parents get kids involved in things they don’t want to do. The same can be said about our hobbies and pastimes.

You need to examine the reasons for getting involved and decide whether the cost is worth it. Most of the time, it is not. This can apply to any area of your life. Maybe you have a home business, but it’s costing you as much as you earn. You might have a hobby that is costly. You might like to do crafts, but the supplies are costly. You need to look at everything involved with those things and ask yourself what the real cost is for the hobby or pastime.

9. No more food waste. When you are living below the poverty level, you do not have the luxury of wasting food. If you are raising food, you’d better find a way to preserve it somehow if you cannot eat it all. If you have leftovers, you should be eating them until they are gone. If you cannot eat all the leftovers, you need to freeze them or offer them to friends. If you do not like leftovers, you either need to get over yourself or make just enough food for the meal. You do not have the money to be throwing away food. If you have little bits of food or vegetables in your fridge you don’t know what to do with, make a refrigerator clean-out casserole or soup.

10. Clean and take care of your things. Neglect and disrepair will only cost you more money. You need to make sure your things are clean and in good repair. Most of the time, keeping your items clean costs almost nothing. If something breaks, have it fixed or fix it yourself. Most of the time, repairing the item will be cheaper than buying a new one.

11. Save money any way you can. You always need to look for savings in almost all of your decisions. This doesn’t mean you should buy cheap goods that will break quickly instead of quality. This means you should always examine everything to see if you can save money. Saving items like rubber bands, twist ties, bread sacks, scrap paper, and more will save you money and extend the life of your purchase. Turn on a lamp instead of the overhead light because it uses less electricity. Use grocery sacks for trash bags instead of using the real thing. Put on a sweatshirt and drop the thermostat by two degrees in the winter. Ask yourself constantly how you can save money and do it.

12. See how far you can stretch a tank of gas. Buying gas for your vehicles can be a budget killer. If you drive to work every day, ask yourself whether you can carpool with someone. Maybe you can walk or ride a bike to work. If you do have to drive, drive the speed limit. You also need to combine your errands. Try to limit the number of trips you make. Ask yourself if it is really necessary to make the trip, if not for work or family. Reduce your grocery trips to once a week or twice a month. If you need to go to the library, where else do you need to go?

13. Have a no-spend week, month, or even longer. If you really want to curtail your spending, this is a great way to do. You need to set your limits and allowable purchases (gas, groceries, prescriptions) before you start. You also need to write down anticipated expenses and what you will do if unanticipated expenses arise. However, this works best if everyone is on board. If you live with others, you need to talk to them. You can still practice a no-spend month yourself, but it just might be more difficult.

14. Never turn down free items if you need or want them. Some people will turn down free items offered to them just because of their pride or they think someone else will need it more. If you can use it or need it, by all means, accept the free items. Accepting and using free items is the number two way to save money (number one is not spending money).

15. Learn to trade and barter. Trading goods and services is a win-win for everyone involved. If you have eggs and your neighbor has apples, trading them helps everyone involved. Bartering is a similar concept. You can offer to clean for someone in exchange for a haircut or another service. Whether trading or bartering, you are saving yourself a great deal of money.

16. If you have some expensive habits or friends, this is a good time to put them on hold. We can have the best intentions when we are trying to save money, but our habits and our friends can ruin those intentions in seconds. Habits like a drink after work, daily coffee runs, ribeyes on Friday nights, and expensive night outs can be the ruin of a good budget. You might think that these things will ruin the budget at the time, but over time, these things can really add up and take away from the money you are desperately trying to save. Friends can be just as bad. Some friends may not feel like they can have a good time without an expensive meal out, lots of drinks, and/or a day of shopping. You can deal with them by leveling with them about the fact that you are saving money and cannot do those things anymore. You can maybe find other things to do with them that are free or inexpensive, but you may just have to stay away from them for a while.

17. If you have a credit card problem, you need to deal with it. I know a lot of people who are completely responsible with credit cards and pay them off every month. They are very conscious about what they spend and use it responsibly. I am not talking to those people. If you have problems with credit cards, you need to get rid of them as quickly as possible. You may need to cut them up or put them in a safe deposit box away from you. If the interest rate is very high, consider switching or transferring to a low- or no-interest card to save on interest. Then you need to pay them as quickly as possible. You need to learn to live on cash or within a budget if credit cards are a problem.

18. Buy used before you buy new. Almost everything you consume can be purchased used, except for food, personal items, and maybe undergarments. Most of the time, you can find what you need to purchase used on Craigslist, Facebook Marketplace, garage sales, resale shops, thrift stores, and sidewalk curbs. If you can anticipate needing the item and you find it before you need it, purchase it. This would apply to items like winter coats, clothes for growing children, school supplies, and more. You will save so much money this way and you will also stop the cycle of consumerism.

19. Shop from home first. Most people will go out and buy something new instead of using what they have at home. Back-to-school shopping is a prime example of this. Your kids probably came home with items they used last school year that are in perfectly good condition. However, we have been trained to think they need everything new when school starts again. We need to ditch that thinking. Look over last year’s items and reuse what you can. The same goes for gifts. Most of the time, we have a brand-new item at home that will work as a wedding or baby shower gift. Yes, this is regifting and make sure you do it right. Remove the card and make sure you don’t give it back to the person who gave it to you. You may also be able to make a present using items you already have on hand.

20. Reuse, reuse, reuse. Most items are not disposable, but we treat them as if they were. It is easier to throw something away and purchase new again. However, a person living at or below the poverty line does not have that luxury. Wash, fix, repair, mend, and reuse items again. If something like a towel (for example) is no longer sufficient for the shower or bath, it can be used as a cleaning rag. Plastic bags can be washed out and reused again and again, unless you use them for raw meat. Ask yourself if you can reuse this item or find another use for it before throwing it away.

21. Buy non-disposable items. On the flip side of reuse, reuse, reuse means making sure to purchase non-disposable items. This may seem like you are spending more money, but you are spending money on an item you hopefully never have to purchase again. Using handkerchiefs or a washcloth instead of facial tissues will save a lot of money. Using rags or cleaning cloths instead of paper towels will save a lot of money. Using plastic or glass food containers instead of plastic food bags will save money. Look for the items you can use again and again instead of disposable items.

22. Realize that saving money is in the little things as well as the big things. Many people believe you cannot save money unless you are saving on big purchases. This is simply not true. With a poverty mindset, you need to look for savings everywhere, and often the real savings are in the little things. By not buying coffee every day, you save $1-4 per day, which adds up to $7-28 per week. In addition to those savings, you aren’t tempted to buy the donut or bagel, which is $2-4 a day or $14-28 a week. Already, you have saved $21-$ 56 in a week, which is $84-$224 a month, which is a very nice payment on a bill. This is the mindset you need to create – little savings add up to big savings over time.

23. You may not be able to buy organic, non-GMO food or special ingredients. Back to the good old grocery budget. Most impoverished people can not afford this kind of food unless they are growing it themselves. As I mentioned before, you need to switch to cheap, basic foods, but that doesn’t mean you need to eat junk or be unhealthy. You need to keep food, such as rice, beans, vegetables, and fruits, and eat well but cheaply. You just may not be able to afford organic food, hemp seeds, or anything marked up because it’s the new health-food cure-all.

24. Use everything until it is gone and do not purchase new unless you need it. When you are poor, you do not have the luxury of throwing away a half-used bottle of shampoo. You suck it up and use it up. You add a little water to the bottle to get the last bit out after tipping the bottle upside down for several days. The same should apply to almost everything else you use. You do everything you can to use up the last little bit of everything. Then you need to ask yourself if you need to buy another one, or if you have something else on hand that will work. Most people do have something that will work instead of buying new. However, if you need it, by all means, buy another one and try to make it last longer (unless it has a short shelf life!).

25. Work as much as you can (within reason). If you truly need to get out of debt, pay off big bills, or just try to save a large amount of money, you need to work as much as you can. Most people are not willing to do this. However, if you are offered more hours at work, take them. If you have the opportunity to work a part-time job in addition to your full-time job, do it. The only caveat to this would be if you have to pay more to work more. Having kids in daycare longer is usually not beneficial for the budget or family life. Sometimes you can work from home or telecommute, which can help you save money and earn more. I would just steer clear of multi-level marketing jobs that ask you to spend money in hopes of making more money. Yes, they do work for some people, but often they don’t work for others.

Some of you are thinking you already do most of these things, but can you take it further? I know I can and should. If you are stuck for ideas, the internet is a wonderful place full of good ideas. If you think you can’t live without a smartphone, satellite television, and more, research other cultures and extreme savers. They will teach you quickly that you can and you would be spending your time much more productively without them.

Do you think you can live like this? Do you think you could make the sacrifices for the bigger goal?

Thanks for reading,
Erica

Related Posts:
What Place Does Extreme Frugality Have In Your Life? How Can You Live In Extreme Frugality?
The Budget Is Getting Tighter! 15 Ways We Are Making Lincoln Scream And You Can Too! 

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Updated 4/13/2026

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