Why Americans are already stressing about back-to-school debt


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Amid a 40-year inflation high, borrowing is getting more expensive. Last month, the Federal Reserve raised the federal funds rate by three-quarters of a percentage point, its biggest hike in nearly 30 years. Consequently, lenders of various types are raising their rates — but despite this, many Americans expect to add debt in the next six months, according to the latest LendingTree survey of more than 1,000 U.S. consumers.


What does that indicate? According to LendingTree chief credit analyst Matt Schulz, it’s not necessarily a bad sign.

“The truth is that debt can be either a sign of confidence or struggle, and I suspect we’re seeing the effect of both of those in our data,” he says. “Many people take on debt because they feel good about their financial situation and aren’t too worried about paying a little interest if it gets them what they want or need. Plenty of others take on debt because they have to. There’s no question that both situations are happening right now.”

Key findings

  • 43% of Americans expect to add debt in the next six months, fueled by credit cards (22%) and auto loans (10%). Parents with children younger than 18 are most likely to expect to take on debt during the second half of the year, at 58%.
  • More than 3 in 5 (61%) Americans are dealing with debt, with credit cards being the primary driver at 70%. Gen Xers are the most indebted generation (70%), while parents are more likely to have debt than those without kids. Those with the lowest credit scores are also more likely to have debt than those with the highest (80% versus 46%).
  • Necessities (30%), emergencies (26%) and health or medical issues (25%) are the most common reasons consumers are in debt. Additionally, a quarter of indebted Gen Zers and millennials say they’re in debt to build credit, though it’s a popular misconception that carrying a credit card balance improves your score.
  • More than 1 in 5 (21%) Americans are debt-free after paying off their balances — here’s how they did it. The majority of those who were formerly in debt say they stuck to a strict budget (45%) and put all extra money toward paying off the debt (35%). However, when those who currently have debt were asked what they believe is the best way to get out of debt, just 16% thought budgeting or cutting spending was the way to go.
  • Which repayment strategy is more popular: debt avalanche or debt snowball? It’s a 50/50 tie, but those who’ve paid off all their debt prefer saving on interest through the debt avalanche method (57%). Women (52%) and Gen Zers (52%) are more likely to prefer the debt snowball method, celebrating small wins by paying off the lowest balance first, while men (53%) and Gen Xers (53%) opt for the debt avalanche method, saving money on interest by paying off the debts with the highest rates first.

43% of Americans expect to take on debt in next 6 months

Of those who expect to take on debt during the second half of the year, parents with children younger than 18 are most likely to do so (58%). Creditworthiness also plays a role in a consumer’s likelihood of taking on debt. Those with credit scores from 670 to 739 — rated good by FICO — are more likely to take on debt, at 56%.


FICO credit scores differ from VantageScores. While both rate credit scores on a scale of 300 to 850, the categories within are different. For example, 781 is considered an excellent score by VantageScore, but it’s very good (one tier lower) by FICO. Ranges within this survey are based on FICO scores — more to come on the specifics.

By age group, younger consumers expect to take on debt more than older consumers. Take a look at the breakdown:

  • 56% of millennials ages 26 to 41
  • 55% of Gen Zers ages 18 to 25
  • 41% of Gen Xers ages 42 to 56
  • 21% of baby boomers ages 57 to 76

Credit cards are the most common source of future debt for consumers — just over 2 in 10 (22%) consumers expect to take on credit card debt. This is particularly true for those with good FICO scores between 670 to 739 (33%) and parents with underage children (30%). Following credit cards, 1 in 10 (10%) expect to take out an auto loan, though men (13%) are more likely to be planning for future auto loans than women (7%).


Unsurprisingly, Gen Zers plan to take on school-related debt more than any other age group — 21% expect to take out a student loan, ranking it second-highest for this generation outside of credit cards (25%). Additionally, 11% of parents with underage children plan to take out a personal loan, making them almost twice as likely to do so than the average American (6%).

Views on debt differ by generation

Generally, consumers are most likely to think that some debt is good (45%), but opinions vary by generation. Baby boomers and Gen Zers are the most likely to believe debt is good for building credit or financial stability, at 22% each. While Gen Zers (31%) are also the most likely to believe all debt is bad, Gen Xers are the most likely not to have an opinion either way. Rather, 15% believe that debt is inevitable given their circumstances.


With that said, most consumers are uneasy about taking on debt. Overall, 60% of Americans would rather use cash or savings to cover a purchase, particularly consumers with poor FICO scores between 300 and 579 (69%) and millennials (67%). While Schulz says paying with cash is often a great idea, he cautions against leaving money on the table while inflation is rampant.


“The better move is to pay for purchases with a credit card and then use that cash to pay the card off in full every month,” Schulz says. “If you can manage to do that, it really is a best-of-both-worlds situation. You get card rewards to help you extend your budget, and you can get them without going into any debt along the way.”

The risks are high for the 39% of Americans who are debt-free, Schulz says. But for the 18% of Americans who’ve never taken on debt, Schulz warns that the risks are even higher.


“Debt can be absolutely devastating, of course,” he says. “It can ruin lives, in no uncertain terms. However, those who swear off all forms of debt forever may end up limiting their potential in the future. It may sound good in the short run and be done with the best intentions, but sometimes you have to take on a bit of risk to reach greater success.”

How Americans feel about debt

3 in 5 consumers dealing with debt

While many plan to take on debt in the future, the majority of Americans (61%) are already dealing with it. Gen Xers (70%) are the most indebted age group, but baby boomers (65%) and millennials (65%) aren’t far behind. Meanwhile, only a quarter (25%) of Gen Zers have debt, though this may be because they haven’t had enough time to build debt compared to older generations.


Parents are more likely to have debt than those without kids: 68% of parents with adult children and 66% of parents with underage children have debt, compared with 52% of child-free consumers. Additionally, those with lower credit scores are typically more likely to have debt. Take a look at the percentages of consumers in debt by FICO credit score ranges:

  • 80% of consumers with poor FICO credit scores (300 to 579)
  • 77% of consumers with fair FICO credit scores (580 to 669)
  • 61% of consumers with good FICO credit scores (670 to 739)
  • 60% of consumers with very good FICO credit scores (740 to 799)
  • 46% of consumers with exceptional FICO credit scores (800 to 850)

Credit cards are the top source of debt here, too, as 70% of indebted consumers have a credit card balance. That’s followed by auto loans (33%) and mortgages (29%). Medical debt ranks fourth overall, but consumers with poor credit scores are particularly likely to owe medical debt — 35% of this group owes for this reason, compared with 10% of those with exceptional credit scores.

Types of debt owed by Americans

Though just 12% owe buy now, pay later (BNPL) loans, millennials (20%) have more of this type of debt than any other generation.


The amount owed varies by group, too. While 53% of indebted consumers owe $10,000 or more excluding mortgage debt, Gen Zers (68%), consumers with good credit scores from 670 to 739 (65%) and parents with children younger than 18 (64%) are the most likely to owe more than that.


On the other hand, those who don’t know their credit score are notably the most likely to owe less than $10,000 (63%). That’s followed by baby boomers (55%) and parents with children 18 and older (53%).


Including mortgage debt, however, has a notable impact — particularly by income. Six-figure earners are most likely to be impacted by mortgage debt. Excluding mortgage debt, 15% of these high earners owe $100,000 or more, but 64% owe $100,000 or more when mortgage debt is included. Comparatively, just 25% of all consumers with debt owe that much when mortgage debt is included.

Most common reasons consumers go into debt

Generally, most consumers are going into debt to cover vital expenses. In fact, necessities (30%), emergencies (26%) and health or medical issues (25%) are the most common reasons consumers are in debt.

Most common reasons consumers go into debt

Consumers with poor credit scores from 300 to 579 are the most likely group to cite health or medical issues (34%), and they’re also more likely to cite poor bad money management skills (35%). Meanwhile, among those with annual household incomes of $75,000 to $99,999, 16% say life’s too short to not enjoy money — and for six-figure earners, 28% say their debt is a result of impulsive spending decisions.


Additionally, a quarter (25%) of indebted Gen Zers and millennials say they’re doing it to build credit. However, carrying a credit card balance won’t help your credit score — though a recent LendingTree survey on credit card mistakes found that 65% of consumers believe it does. It’s more important to pay off your credit cards in full every month.

Best way to pay off debt: What consumers think vs. what’s worked

More than 1 in 5 (21%) Americans are now debt-free after paying off their balances. Among these consumers, 45% say they got out of debt by sticking to a strict budget — and 35% say they put all their extra money toward paying off their debts.


But that’s not what the majority of indebted consumers think works. While 45% agree that increasing monthly payments (either in frequency or amount paid) is the best way to get out of debt, just 16% think budgeting works.


Meanwhile, the majority of all consumers surveyed agree with those who are debt-free: If a loved one were struggling with debt, 46% would advise them to stick to a budget. Meanwhile, 33% would advise them to cut up or cancel their cards to stop spending.

How consumers became debt free

Debt snowball vs. debt avalanche: Consumers split down the middle

The two most popular methods to make debt payments are:

  • Debt avalanche: Making minimum payments on all outstanding accounts, then using any remaining money designated for debts to pay off the bill with the highest interest rate.
  • Debt snowball: Paying off the smallest debts before moving on to bigger ones. This helps encourage consumers to keep paying off debt by celebrating multiple wins first.

Consumers generally don’t prefer one over the other — across all those surveyed, both methods tied at 50%. However, women (52%) and Gen Zers (52%) are more likely to prefer the debt snowball method, while men (53%) and Gen Xers (53%) opt for the debt avalanche method.


When it comes to what worked, though, the avalanche method takes a slight lead. Of those who’ve paid off their debts, 57% say they prefer the avalanche method. Meanwhile, 52% of those in debt say they prefer the snowball method.

Preferred debt payment method

Schulz says one method isn’t better than the other. Rather, it’s just a matter of math versus psychology.


“The best debt payoff method is the one that you’re the most likely to stick with,” Schulz says. “If you’re motivated by paying your debt off as quickly as possible and paying as little interest as possible, the avalanche method is for you. If you’d be more motivated by getting wins, the snowball method is the way to go. Paying off debt is a marathon rather than a sprint, and sometimes mixing in a few small victories can be the fuel you need to keep going.”

Expert tips for dealing with debt

Breaking a debt cycle can be difficult. Depending on how much you owe, it may often feel impossible. For those struggling with debt, Schulz offers the following advice:

  • It all starts with a budget. “You can’t make a meaningful plan to knock down debt unless you know exactly how much money is coming in and going out of your household regularly,” Schulz says. “Once you have a handle on that, you can make some important decisions on how to spend your money based on your current priorities. For someone struggling with debt, that would obviously include paying it down.”
  • Don’t stop building up your savings. Schulz says you can (and should) pay off your debts while simultaneously building up your savings. “That way, when you finally get that card balance to $0, you won’t be left with an empty checking or savings account and forced to break out the credit card again for the next unexpected expense,” Schulz says. “That’s how you break the cycle of debt that so many people find themselves in. It isn’t easy, but it is worth it.”
  • Don’t discount the importance of emotional support. “Paying down debt sucks,” Schulz says. “I’ve been there. It’s really tough. However, if you have a group of friends or relatives rooting for you and helping you stay on the straight and narrow, it can be so much easier.”


LendingTree commissioned Qualtrics to conduct an online survey of 1,008 U.S. consumers, fielded June 17-20, 2022. The survey was administered using a nonprobability-based sample, and quotas were used to ensure the sample base represented the overall population. All responses were reviewed by researchers for quality control.

We defined generations as the following ages in 2022:

  • Generation Z: 18 to 25
  • Millennial: 26 to 41
  • Generation X: 42 to 56
  • Baby boomer: 57 to 76

While the survey also included consumers from the silent generation (those 77 and older), the sample size was too small to include findings related to that group in the generational breakdowns.




This article originally appeared on LendingTree.com and was syndicated by MediaFeed.org.

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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!


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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.




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.




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.


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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.





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.




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.




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!





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.


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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.





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.


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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.




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!



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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.



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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.





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.



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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!)


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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.





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.





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.




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.


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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).


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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.)



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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.





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!



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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!




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.



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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.



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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.





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.





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!




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.)





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.





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.)



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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!)




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.)





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.





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!


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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!)



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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!



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Instead of keeping your cooktop on the entire time, try this energy-efficient technique:

  1. Bring the water to a boil.
  2. Drop in the pasta.
  3. Stir the pasta to prevent clumping.
  4. Bring the water back to a boil, then turn off the heat.
  5. Put the lid on the pot.
  6. Let the pasta soak for 10 minutes.
  7. Try it for doneness.
  8. 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!




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.



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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!





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!





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!





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?





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!



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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.





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!



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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!





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!)



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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!)



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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.





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).



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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).


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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!)





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.)



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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.





For maximum savings, stack every money-saving shopping strategy that’s available to you. Here’s how:

  1. Pay for your discounted gift cards with a rewards credit card.
  2. Use a rebate site to earn cash back on your purchase.
  3. Use a discounted gift card to pay for the purchase.


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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!)





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.)





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.)





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!





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.)





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.





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.





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.





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!





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!)





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!



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Featured Image Credit: coscaron / istockphoto.