13 Ways to Lower Your Cost of Living Without Sacrificing Joy

It’s no secret that prices have gone up a lot in the past decade. If you’re a middle-class family trying to make ends meet or someone trying to save up for a big purchase, you’ve no doubt felt the squeeze.

Many people feel stuck in this situation. They figure the main ways to decrease their cost of living would be to move to a smaller house, buy a cheaper car, cut back on healthcare, or make fewer convenience purchases. They’ve decided that those cuts would be too painful and instead choose to pay the higher prices.

But, what if I could show you how to lower your expenses without giving up anything you’d truly miss? It might not be easy— in fact, you’ll have to change some of your habits— but it is totally possible.

The key is to lower the cost of things that don’t matter or to change your lifestyle in ways that aren’t actually a sacrifice. I’ve given this a lot of thought recently, and come up with a list of ways that my wife and I have managed to keep our expenses low, despite having a household of 7 people. I’ll share them with you below:

Eat out less

Many families I know eat out all the time. It is certainly a timesaver when you’re busy, but on a per meal basis it’s much more expensive. You also have to consider that the food is often less healthy and the practice disconnects you from the places you live. Try to see eating out as a special treat on occasion, not a regular convenience and you may find you enjoy it even more.

Buy used or refurbished electronics

When I need a new computer or phone, I look for opportunities to buy something that is lightly used and cheaper than new. Most technology now is built to very high standards, so a gently used model is almost as good as new. That said, I would avoid buying technology that is more than 5 years old or doesn’t have a couple of years of battery life left, or else you won’t be saving any money in the long run.

Use less energy

We’ve made our house as energy efficient as possible by adding insulation and sealing air leaks. We’ve also replaced our old incandescent bulbs with LEDs that use far less energy to produce the same amount of light. These changes, aside from their upfront cost, don’t require us to sacrifice any comfort for cheaper bills.

Minimize your driving

If you live in an area with high gas prices, you’re probably looking for any way to use less gas. One way to do this is to plan your trips so that you’re not driving back and forth all the time. You could also carpool with a spouse or friend when you’re heading out to run errands. A final tip is to combine your exercise with travel by riding a bike to get to nearby locations.

Cut cable and landline

It’s amazing to me how many people still have cable TV and landline telephones. My wife and I ditched our cable in favor of streaming services more than a decade ago. And when we got married we haven’t had a landline phone in our house. These two changes will instantly save you money with no loss of quality in our media experiences.

Practice simple living

Many people are trapped in a cycle of spending to fill an emptiness inside. They buy things as a way to reward themselves or get a quick dopamine hit. But such pleasures fade fast; you’re unlikely to remember the things you bought or the times you spent money. Simplicity offers another way— to learn to value what you already have and find fulfillment in that.

Cut back on alcohol

I know many people for whom alcohol is a major part of their budget. Some people spend nearly as much on expensive cocktails as they do on their meals when they go out to eat. And many people drink every day of the week. If that’s you, maybe you can cut back on drinking alcohol to only when you’re out with friends. You might even find that you feel better and more energetic as a result.

Buy store-brand items

I find that most people are too brand-loyal when it comes to the things they buy at the grocery store. With a little experimentation, you’ll find that many store-brand options are just as good as the name brand, but cost significantly less. My wife and I buy store-brand versions of milk, cheese, paper towels, and many other products. Sometimes you might have to experiment with different store brands until you find one you like.

Cancel subscriptions you aren’t using

Most people get excited to try out a cool new subscription service, but rarely do they give as much thought to canceling them when they’re no longer needed. We are guilty of using a subscription for a particular project, only to let it sit unused for months afterwards. We also have a couple of subscriptions that go inactive when we’re not using them. Innocent mistakes like this can add up to hundreds of dollars over the course of the year.

Automate your savings

One of the best ways to save money is to keep it out of your checking account in the first place. It’s too tempting when you see your checking account balance going up to feel like you have extra money to spend. Instead, set up automatic withdrawals to a savings account that takes the money out before you see it.

Stop the impulse purchases

Impulse purchases are usually made without much thought. The next time you feel like spending money on something you weren’t planning to buy, give yourself a 24 hour cooling off period where you can think about it. Alternatively, you can use a wishlist and agree to only buy things that have been on your list for a certain period of time— maybe a month or more.

Don’t waste food

I don’t know about you, but this is an area where my family wastes a lot of money. We buy food with the best of intentions and then end up not using it. Maybe we buy more perishable food than we can eat, or start a recipe that we don’t finish. Whatever the reason, it’s like throwing money in the trash. The old saying “waste not, want not” really applies here. If you aren’t wasting your food, you’ll have more money to spend on other things or put away in savings.

Use your local library

I used to be one of those people who enjoyed owning every book I read. But one day I realized that I reread almost none of my books and they were just taking up space in my house. Since then, I’ve mainly shifted my book-reading to books I can check out at the library. It’s a great way to reduce your book expenses, while still being able to enjoy all the books you want.