Personal loans can be a great option for many people, so borrowers across all credit score levels, even those with the highest scores, regularly turn to them to help finance costly expenses. But how those funds are used can vary significantly, especially when comparing individuals in more financially stable positions to those with lower credit scores.
To parse out these differences, LendingTree researchers reviewed personal loans closed on our platform between April 2021 and March 2022 to see how people with high credit scores are using them. They then compared those findings to those of borrowers with low scores. (In this study, we define a high credit score as 720 and above.)
Among their discoveries, our researchers found that, much like lower credit score borrowers, those with high credit scores primarily use personal loans to consolidate debt; they just borrow at levels that far exceed those of the lower score group. And yet, those loan amounts aren’t even the highest they take out: Home improvements and business loans typically claim more.
Read on to learn more about how high-credit score borrowers are using their personal loans.
Key findings
- Borrowers with credit scores of 720 and above take out personal loans that average far higher than those taken out by people with lower credit scores. Personal loans for high-score borrowers average $18,443, which is 122.2% higher than the $8,301 average for those with scores below 720.
- The majority of personal loans for high-score borrowers are for debt consolidation, but that’s not where they’re spending the most. 39.7% of high-score borrowers take out personal loans that average $19,991 to consolidate debt. However, the 12.8% borrowing for home improvements take out an average of $21,510.
- Lower-score borrowers (below 720) are taking out a higher percentage of personal loans in categories that indicate more immediate needs. For example, medical expenses account for 3.6% of closed loans among low-score borrowers, versus just 1.9% among high-score borrowers.
- High-score borrowers are least likely to take out personal loans for medical bills, moving and relocation, business expenses and vacations or weddings, but when they do, they go big. Only 1% of high-score borrowers took out vacation or wedding loans, while moving/relocation and business loans tied for second least used at 1.5%. However, the largest loans taken out by these borrowers (an average of $22,778) were for business purposes.
Borrowers with high credit scores take out loans 122% larger than those with lower credit scores
Those with credit scores of 720 and higher tend to take out personal loans that average far higher than those taken out by people with lower credit scores. More precisely, high-score borrowers average $18,443 in personal loan amounts, a whopping 122.2% higher than the $8,301 average amount taken out by consumers with scores below 720.
However, these lower amounts typically aren’t by choice; in many cases, lenders will restrict loan amounts for those with lower credit scores, and then offer them extremely high APRs.
“The better your credit score, the more comfortable lenders are likely to be with lending you more money,” says Matt Schulz, LendingTree chief credit analyst. “Lenders want to be sure that they will be paid back in a timely fashion.”
A high credit score indicates that you’ve done a good job managing and repaying debt in the past, which can make lenders confident that you’ll handle repayment well in the future.
“Higher-income consumers also tend to have higher credit scores than folks with lower incomes,” Schulz says. “That combination of high income and high score makes banks feel much better about lending those groups of people larger sums of money.”
Nearly 40% of high-score consumers use personal loans for debt consolidation
Most high-score borrowers who receive personal loans use the funds toward consolidating their debts (39.7%). After that, the next big uses are for credit card refinancing (15.8%), home improvements (12.8%), major purchases (7.6%), car financing and repair (2.8%), medical expenses (1.9%), business or moving and relocation costs (1.5%) and vacation or wedding expenses (1.0%).
Interestingly enough, despite topping the list of loan uses, debt consolidation isn’t where high-score consumers take out the largest loans. More is taken out for home improvements, with an average of $21,510 borrowed, compared with $19,991 for debt consolidation.
Credit card refinancing, the No. 2 reason for taking out personal loans among this group, saw high-score individuals borrowing an average of $17,625 (with an average APR rate of 8.18%).
These numbers shouldn’t be surprising, Schulz says. Even though home remodels. whether in the kitchen, bathroom or elsewhere, can be extremely expensive, they typically work out to be a good investment.
“I think many people are comfortable with taking out larger loans for a home remodel because, when done wisely, the right additions and tweaks to a house can increase a home’s value by far more than what they cost to implement,” he explains. This may be deemed especially important today with housing values rising rapidly throughout the U.S.
Still, debt consolidation remains the biggest reason driving people to get a personal loan for very good reasons, Schulz says.
“Personal loans are an amazing tool to help people not only save money but to streamline their finances,” he adds. “Dealing with just one debt payment each month rather than four or five separate ones is a pretty big deal, which is why people of all kinds use them that way.”
Low-score borrowers are more likely to use personal loans to cover bills and basic needs
Though paying off debt also tops the list of personal loan uses for lower credit borrowers (37.7%, compared with 39.7% of high-credit score individuals), those with credit scores below 720 use personal loans far more often to pay for immediate personal needs than those with high credit scores.
Personal loans for medical expenses made up 3.6% of closed loans for low-score consumers, while just 1.9% of high-score consumers applied their loans to medical bills. Low-score borrowers were also more likely to use loans for car financing or repairs (3.5%, compared with 2.8%) as well as for moving and relocation (3.3% versus 1.5%).
According to Schulz, this is likely because higher-income Americans have the luxury of handling debt differently than individuals with lower incomes.
“Having a greater financial margin for error allows high-score, high-income individuals to use debt as an investment,” he says. “So, they can take on debt to improve their home and increase its value or to start a small business that can help generate more income for the family.”
Lower-income Americans aren’t that fortunate. Often, they take on debt simply because they have to; they need that personal loan to help them make ends meet and pay their bills. As a result, undertakings like home improvements must fall lower on the priority list.
The LendingTree research bears that out: Just 5.7% of personal loans taken out by lower-score borrowers (at an average amount of $10,114) are used toward home improvements, compared with 12.8% of personal loans taken out among high-credit borrowers (at an average of $21,510).
“It’s a difficult situation, but an absolute reality for many people in this country,” Schulz says. “Unfortunately, booming inflation and rising interest rates are likely to make that even more common in the near future.”
High-score borrowers are less likely to take out loans for weddings, business, but go big when they do
Aside from more immediate needs like medical bills, high-score borrowers are also much less likely to take out loans for vacation or wedding expenses (only 1%), moving and relocation (1.5%) and business (1.5%).
But when high-score borrowers do take out these loans, they go big and ask for more than double the amount of most other borrowers: an average of $22,778 for business-related expenses, compared with the $9,068 that non-high score individuals took out; an average $13,764 for vacations or weddings, versus $5,770 for non-high score borrowers; and for moving and relocation, they received $10,982, compared with $4,548 for the latter group.
“High-score borrowers might not take out many of these loans simply because they have other, better options,” Schulz explains. “For example, if you have a high credit score, you can probably qualify for a 0% interest credit card, which can be used on new purchases for a year or more. Those make a much better deal than your standard loan.”
But the fact that they borrow high when they do take out these loans doesn’t surprise Schulz either.
“To a degree, it’s about access,” he says. “Folks with lower credit scores might not be able to borrow as much as folks with high credit scores, in part because high-income individuals tend to have higher credit scores than those with lower incomes. That combination of high income and high score typically adds up to bigger loans.”
By the numbers
Tips on how to take out a personal loan
If you’re in the market for a personal loan, whether it be for debt consolidation or medical expenses, here are a few tips on how to pursue one:
- Get your credit score up: The higher your credit score, the more likely you are to not only get approved for a personal loan, but also have access to lower interest rates. You can improve your credit score by paying down any current debt you have, making sure you’re current on all your bills and checking your credit report for any errors or fraudulent activity.
- Check if you prequalify: While many lenders allow you to see if you prequalify for a loan, some lenders will have you go through a hard-credit inquiry before allowing you to see your available rates and terms if you qualify. A hard-credit inquiry will negatively impact your credit score and show up on your credit report, whereas a soft-credit inquiry (prequalification) won’t. However, if you decide to go through with a personal loan, you’ll have to submit to a hard-credit pull before receiving the funds.
- Compare multiple offers: As with any large purchase, it’s important to shop around and compare what’s on the market when looking to take out a personal loan. By prequalifying and comparing personal loan offers, you’ll be able to check for the best proposals without harming your credit score. You can compare offers on the LendingTree personal loan marketplace.
Methodology
LendingTree analysts reviewed personal loans closed on the LendingTree platform between April 1, 2021, and March 31, 2022, to determine the percentage of loans taken for various purposes, as well as the average loan amounts and APRs for those personal loans.
For this analysis, high-score consumers are defined as those with credit scores of at least 720.
This article originally appeared on LendingTree.com and was syndicated by MediaFeed.org.
More from MediaFeed:
Why a frugal lifestyle is powerful, painless & fun
For some of us, frugality comes naturally. But for others, frugal living conjures up images of a miserly, meager existence. No wonder so many tune out when the topic of frugality comes up!
But what if I told you living frugally doesn’t have to be painful or boring? And what if I also told you it could bring financial peace, security and even freedom? It’s true. A frugal lifestyle can provide all this and more.
In this article, I’ll share the whys and hows of frugal living. Then, I’ll get you inspired and motivated by sharing my 53 favorite frugal living tips. Ready to start saving? Let’s go!
SPONSORED: Find a Qualified Financial Advisor
1. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes.
2. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
tumsasedgars/istock
As someone who’s always been frugal, I can vouch for the benefits of living a frugal life. There are so many! For those who need a little more convincing, here are my top reasons to embrace frugality.
evgenyatamanenko/istockphoto
Frugality is the simplest, quickest way to improve your finances. When compared with increasing your income, living frugally is far easier. You don’t need special training, knowledge, or tools to save money. Simply pick a tip and get started today!
I think of frugality and saving as low-hanging fruit. Take those easy wins and use them to propel your finances forward.
kitzcorner
Underneath the simplicity of frugal living is its incredible power. With a few frugal choices, you could save thousands of dollars every year. Those thousands of dollars could become tens or even hundreds of thousands when saved and invested over time.
Imagine the options and freedom that kind of money could bring to your life. Frugality can help you get there.
Chinnapong / istockphoto
Being frugal can play a huge role in helping you reach financial freedom. How? It increases the gap between your income and expenses. This gap is your savings. When invested wisely, your savings are what will get you to financial freedom.
While a decent income also plays a part, you won’t get far if you spend it all. Frugality is the other half of the financial freedom equation. Embracing it can help you reach your goals sooner.
DepositPhotos.com
Some people think frugality is difficult and takes the fun out of life. They’re just doing it wrong! The truth is that living a frugal life can be completely painless.
The key is to focus on your values. Cut back hard on things you don’t value. Then, enjoy spending on things you do. That’s the secret to frugality without deprivation.
DepositPhotos.com
Maybe I’m a money geek, but I find frugality and saving to be incredibly rewarding. Seriously though— how can you not feel good about slashing an expense in half or cutting a no-longer-needed expense?
Frugal changes like these are undeniably rewarding both emotionally and financially. If you’re having a hard time embracing frugal living, try focusing on the rewards. That may be what you need to get started.
DepositPhotos.com
I honestly find frugal living to be lots of fun. That’s because it’s not all about cutting back and saving money. In fact, much of it is about getting creative and learning new skills and ideas.
Also, it often requires connecting with and learning from others. This, too, can bring more fun and enjoyment into your life. All of this just makes frugality even more rewarding!
DepositPhotos.com
So, now you know the whys of frugal living. It’s time to learn how you can start embracing this way of life. It isn’t hard, especially if you break it into manageable steps.
That’s what I’ve done for you in this section. Have a read and get ready to start your frugal living journey.
macniak / istockphoto
Get started by learning about the many ways to save money through frugality. To give you some ideas, I’ve listed my 53 best frugal tips in the next section. If that’s not enough, there are plenty of websites, podcasts and books on the topic.
gradyreese
Try to be thoughtful when choosing your initial money-saving tasks. Don’t start with overly difficult or drawn-out ones. This could sap you of motivation and derail the whole process. Instead, select tasks that are relatively easy to accomplish and give you a boost.
DepositPhotos.com
When considering frugal ideas, always keep your values in mind. As mentioned, this is the best way to prevent feelings of deprivation. You’ll also gain a greater sense of satisfaction when your frugal decisions are true to your values. In turn, this will motivate you to keep going.
DepositPhotos.com
Once you tick off some of the easy tasks, it’s time to take on some of the harder ones. They may require more time and effort to complete, but they’ll usually make up for it with bigger savings. Make the leap and go for it — it’ll be worth it!
sorrapong / istockphoto
Keep a running tally of the money you’ve saved. (It might be fun to display your progress using a coloring sheet or wall chart.) This will increase your motivation to continue working through your money-saving tasks.
ImagePixel/ istockphoto
Start making plans to put your savings to work (or enjoy a portion of it)! This can also help to keep your motivation high and feed the virtuous cycle of frugality.
DepositPhotos.com
Finally, it’s time to put your newly-gained savings to work. You could pay off debt, deposit it in a high-interest savings account or invest it. As you watch your net worth increase, you’ll further fuel your desire to find even more ways to save money.
Suwanmanee99 / istockphoto
OK, now we’ve got the whys and the hows of frugal living covered. Are you pumped up and ready to start saving? In no particular order, here are my 53 favorite frugal living tips to help you save money and spend less. (And maybe even reach FIRE (financial independence, retire early!)
GaudiLab / istockphoto
Revisit your recurring expenses to see if you can reduce, cut or optimize them. For example, do you still read that magazine? Could you get away with less mobile data? Revisit your expenses annually (at minimum) plus anytime your needs or life situation changes.
Doucefleur/istock
Every year or so, shop around and get two to three new quotes on your recurring expenses. Switching to a competitor or taking advantage of promotions could save you hundreds.
DepositPhotos.com
Instead of leaving for a competitor, try negotiating with your biller. Call and ask to speak to the retention department. Mention how long you’ve been a customer, then negotiate for a discount or get them to meet (or beat) a competitor’s rate.
donskarpo/istockphoto
Some billers offer a discount to customers who pay their bill once a year or all upfront versus monthly. Insurance, online services and some medical services often offer this payment option.
Depositphotos
Maximize your spending by paying with a rewards credit card. Even better, use a card that offers higher-earning categories (for example, groceries, gas, restaurants).
Farknot_Architect / istockphoto
Often, smaller businesses will offer a discount if you pay in cash or with your debit card. (This tip goes against my previous tip. But in some cases, the savings are greater than any credit card rewards you might earn.)
towfiqu ahamed / istockphoto
Many billers and banks offer refer-a-friend programs where you and/or your referred friend receive a bonus. Sometimes, the referral bonuses can be quite lucrative, so always check to see if your biller or bank offers them!
Resist the alluring sales pitches to buy extended warranties. They’re rarely worth it. Since you’re now a frugality expert, you should be saving enough to cover any issues that arise.
DepositPhotos.com
This is an easy way to potentially save hundreds on your insurance. Raise your deductibles as high as you can afford. Your coverage will remain the same, but your policy premiums won’t — they’ll be much cheaper!
SolisImages / istockphoto
Thoroughly read the details of your insurance policies. Are you paying for coverage you don’t need (for example, jewelry and fine collectibles on your home insurance; rental car coverage on your car insurance)? Remove unnecessary coverage and enjoy the savings!
DepositPhotos.com
Most insurance companies offer senior, group, corporate, alumni or profession-specific discounts. These discounts are sometimes not publicly shared, so you may need to ask to access them.
fizkes / istockphoto
When purchasing insurance or applying for a mortgage, you’ll often do better by working with a broker. Brokers can access quotes from multiple companies. That means they can often find you a better rate than you’d be able to find yourself.
SolisImages / istockphoto
So many banks now offer fee-free accounts. There’s no longer any reason to use accounts with fees or minimum balance requirements. You can also do even better than that! Try to find a no-fee account that pays you high interest and functions as a checking account.
Depositphotos
Keep in mind that fee-free bank or investment accounts may still have hidden charges. You could incur them if you’re not aware. Be sure to understand any potential fees and how to avoid them.
DepositPhotos.com
Even the best of us make mistakes! Call your bank or brokerage to plead your case if you slip up and are charged an account or transaction fee. Often, they’ll offer a one-time fee waiver. It’ll cost you a mild scolding and a promise not to do it again, but it’s worth it!
DepositPhotos.com
Consider investing your money in index funds or ETFs when you’re ready to put your savings to work. They’re effective, easy to use and the fees are ultra-low. (Tip: I highly recommend The Stock Series by JL Collins to learn more about this style of investing.)
nortonrsx
Want to live in your house for free (or close to it)? Try house hacking! Some ideas include: renting out your basement, taking in roommates, or Airbnbing your guest bedrooms. You may also want to consider my family’s house hack of choice: hosting international homestay students.
DepositPhotos.com
Save big on transportation costs by living in an area that’s walkable and/or bikeable. By avoiding the need for a car, you’ll save money, get healthier and help the environment! (Tip: Visit walkscore.com to find walk, transit and bike scores for most cities in the world.)
Joe_Potato / istockphoto
Plan your meals one to two weeks at a time, basing your meals on what’s on sale (see the next tip below). This frugal living skill not only saves you money but time and stress as well. (No more coming home and wondering what’s for dinner!)
DepositPhotos.com
One of the best ways to save money on groceries is to check flyers and shop sales. Doing so could easily save you thousands every year.
(Tip: Use flyer apps like Flipp and Reebee to quickly and conveniently find the best deals in your area.)
DepositPhotos.com
This is one of my favorite frugal hacks! Look for services like Flashfood or Imperfect Foods. They sell close-to-expiry, ugly or overstocked food at heavily discounted prices. We use Flashfood regularly, and it saves us 50% or more on quality, still-tasty groceries.
PeopleImages
Make the best of sales by stocking up and buying in bulk, then store the excess in your freezer for future use. By doing this, you won’t need to buy groceries at regular prices or wait for sales. You can simply ‘shop’ from your freezer!
SPONSORED: Find a Qualified Financial Advisor
1. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes.
2. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
DepositPhotos.com
Combat food waste and boredom by getting creative and reimagining your leftovers. For example, turn a roast chicken into chicken noodle soup, chicken salad sandwiches, or fried rice. (Tip: Look online to find recipes for your leftovers. Often, you’ll discover new dishes that may be even yummier than the original dish!)
Wmaster890 / iStock
If you notice your food’s spoiling sooner than expected, try this simple fix: Clean your fridge. You’ll likely find this fixes the problem. You will save your food from an untimely early demise, and you’ll save money!
AndreyPopov / istockphoto
Instead of keeping your cooktop on the entire time, try this energy-efficient technique:
- Bring the water to a boil.
- Drop in the pasta.
- Stir the pasta to prevent clumping.
- Bring the water back to a boil, then turn off the heat.
- Put the lid on the pot.
- Let the pasta soak for 10 minutes.
- Try it for doneness.
- If it’s not done, try it every 2–3 minutes until fully cooked.
Note: I learned this cooking technique from “The Complete Tightwad Gazette.” It’s the bible of frugal living!
grki
Did you know that most dishes don’t require a preheated oven to start cooking? Save energy and time by putting your dish into the oven when it’s still cold.
During preheating, your food will slowly come up to the right temperature. This, in turn, reduces the overall cooking time and energy use.
Wavebreakmedia / iStock
If a smaller appliance will get the job done, use that instead of a larger one. For example, use the toaster oven instead of the wall oven, the Instant Pot instead of a pot on the stove, the hand mixer instead of the stand mixer. This saves you energy and, in turn, money!
DepositPhotos.com
If you enjoy eating out, you could save big by avoiding the dinnertime timeslot. Many restaurants offer happy hour specials or the same meals at a discount for lunch. As a bonus, you’ll also avoid dinnertime crowds!
jacoblund
My family can usually fill up on three restaurant dishes between the four of us. A typical restaurant dish costs $20 or more (plus tax and tip). Sharing dishes can add up to significant savings and helps to avoid overeating!
DepositPhotos.com
If you can’t finish your meal, ask to have your leftovers wrapped to take home. Don’t forget to also pack uneaten dipping sauces, side dishes and bread. They’ll get tossed anyway, so why waste delicious food that you spent your hard-earned money on?
DepositPhotos.com
Don’t be shy about finding and using coupons and group deals when eating out. They’re a fun and frugal way to try new restaurants (and you could discover a new favorite spot). But don’t forget: being frugal is the goal. Being cheap is not—so make sure you tip on the undiscounted amount!
AndreyPopov/ istockphoto
Drinks (alcoholic or not) are often the most marked-up items on restaurant menus. Desserts have a lower markup but are nonetheless costly for what you get. By enjoying your drinks and dessert at home, you’ll not only save on the menu price but also taxes and tips.
DepositPhotos.com
This may seem weird or gross to some, but it could become the norm if discussed more often! Unless you live in a hot, humid climate, you could very likely shower every other day (or less) without issue. Your skin, wallet and the planet will thank you for it!
ben-bryant / istockphoto
Not only can you wash your body less often, but the same goes for your laundry! Clothing, towels and bedding do not need to be washed after every use. If the item still smells and looks clean, keep wearing or using it until it truly needs a wash. It’s a time, energy and money-saving win-win all around!
PeopleImages
Save money, energy and wear and tear on your laundry by hang drying and avoiding the dryer. I realize it can be a pain to hang up many small items. So, reserve your dryer for socks and other tiny items. (Don’t forget to throw your hang-dried towels in the load — see the next tip!)
Ramon Portelli
To soften your ‘crunchy’ hang-dried towels, pop them in the dryer with your damp laundry. The moisture from the wet laundry will soften the towels. And the towels and dryer balls will speed up drying time and fluff up the rest of your laundry. (It really works!)
gorodenkoff/ iStock
Did you know that ‘free’ or discounted cell phones from cellular providers are financed via your phone plan? It’s rarely a good deal, so opt instead to buy your phone elsewhere (preferably used), then BYOD to your carrier. You could easily save hundreds this way.
Depositphotos
So many of us have fallen into the ‘normal’ routine of upgrading our devices every two to three years. It’s time to stop the madness! For the sake of your wallet (and our planet), resist this cultural norm and hang onto your devices for as long as you can. Four to five years is a more reasonable lifespan for phones (and five or more years for tablets).
Sushiman/ istockphoto
Always shop the used market first! Even like-new items sell for a fraction of their original purchase price. Buying used does require patience and effort, but it usually pays off. This is especially true when you’re done with the item and resell it for the same price or more! It’s essentially like renting items for free (or close to it).
SPONSORED: Find a Qualified Financial Advisor
1. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes.
2. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Danchenko / iStock
If you do a lot of shopping at Amazon, you’ll love Camel Camel Camel. It’s a website that helps you monitor Amazon for price drops on items you’re interested in. When an item you’re watching drops in price, Camel Camel Camel will send you an alert. (Tip: Prices can change quickly on Amazon, so jump on it when you get an alert!)
DepositPhotos.com
Sign up for rebate sites like Rakuten, Mr. Rebates, and Great Canadian Rebates. These sites allow you to earn cash back on your online purchases. Watch for bonus events when you can earn 2x, 4x or even 10x the normal rebate on your purchases! (Tip: Check multiple rebate sites before making purchases. Often, the cashback amount is significantly higher on one site.)
B4LLS / iStock
Discounted gift cards are a great way to save even more at your favorite stores! (You can purchase them in both physical and electronic formats.) Shop for them at websites such as Raise, CardCash and Cardswap. Typically, you’ll get bigger discounts on gift cards in larger denominations and for less-popular stores.
CentralITAlliance/istockphoto
For maximum savings, stack every money-saving shopping strategy that’s available to you. Here’s how:
- Pay for your discounted gift cards with a rewards credit card.
- Use a rebate site to earn cash back on your purchase.
- Use a discounted gift card to pay for the purchase.
Deposit Photos
Train yourself to ignore regular-priced items. Instead, head to the sale/clearance section of your favorite store or website. You’ll typically save 25% to 50% on these items, but the discounts can be even higher. (This blows the typical 5% to 10% off offers on regular-priced merchandise out of the water!)
DepositPhotos.com
These are getting harder to find, but it’s always worth a try. Search online for promo, discount, or coupon codes for the stores you shop at. Typically, these coupons will get you free shipping or 10% off your purchase. (Tip: If you’re also using a rebate site, check the terms and conditions. Sometimes, using a coupon will void the cashback offer from your rebate site.)
DepositPhotos.com
One of the best ways to save a lot of money is to DIY everything that you can. Here are some ideas to get you started: cooking, baking, home, car maintenance and repair, renovations, haircuts, pet grooming, vegetable growing. The possibilities are endless! (Tip: YouTube is one of the best, free ways to learn how to DIY just about anything.)
DepositPhotos.com
Mending and repairing things is, sadly, becoming a relic of the past. This is terrible for our wallets and the environment. Thankfully, the right to repair movement is gaining steam. Fight back against disposable culture. Turn mending and repairing into a normal part of your frugal living routine!
istockphoto
Maintaining your stuff goes hand-in-hand with the previous tip. Take care of your belongings and regularly maintain them. It will save you money and prevent the need to mend or repair them in the first place. (Tip: Set recurring reminders on your phone so you don’t forget to take care of routine maintenance tasks.)
istockphoto/dima_sidelnikov
Travel can be very costly. Fortunately, there are lots of ways to save on vacations and trips. Traveling as a group is one of them. Group travel can net you valuable discounts through bulk purchases and shared accommodations and transportation.
pixelfit
This is my family’s favorite form of travel accommodation! Airbnbs are typically more affordable than hotels. Also, there’s usually a kitchen to cook or reheat meals (which saves money on eating out). We also love that Airbnbs are actual homes. This gives us a more authentic travel experience.
DepositPhotos.com
Slow travel is one of the best ways to make travel more affordable. How? When you slow travel, you can spread out the cost of transportation (e.g., flights, trains, etc.) across many more days. This brings your per-day cost way down. Slow travel also gives you time and flexibility to select slower, more affordable modes of transport.
DepositPhotos.com
Travel hacking is the process of earning credit card points to pay for your travel expenses. You could end up paying little or nothing for flights, hotels and other expenses. It’s a fantastic way to turn your regular spending into free or discounted travel!
MStudioImages
This final tip will help you go beyond the tips in this post. Anytime you’re faced with a spending decision, get creative. Ask yourself how you might be able to do it more frugally. Over time, you’ll get better and better at it. (It’s like exercising a muscle, so practice often for best results!)
DepositPhotos.com
I hope this post inspired you to embrace frugal living. When you live frugally, you’ll save money and time and lighten your footprint on the Earth. What’s not to love? Take action now by picking one (or a few) tips from this article and get started!
When you’re ready to learn even more ways to save money, visit my How Much Does it Cost to Live the FIRE Life interview series. Through the interviews, my interviewees and I share our actual expenses along with a plethora of frugal tips from all over the world!
This article
originally appeared on YourMoneyGeek.comand was
syndicated by MediaFeed.org.
DepositPhotos.com
DepositPhotos.com
Featured Image Credit: Drazen Zigic / istockphoto.
