Cheapest Way To Live (10 Genius Hacks To Save Thousands)

Last Updated August 1, 2024 by Davina Kelly

Do you want to learn the cheapest way to live? Maybe you want to save for a down payment, pay off debt or improve your finances.

With a little creative thinking and a shift in mindset, it is entirely possible to find cheap ways to live and save money.

Living cheaply does not mean you have to deprive yourself. 

You can stick to a budget and save without feeling uncomfortable. Even on a low income, you can still do the things you enjoy.  

Personally, I’m all about saving money while having fun. I was in debt for a long time so I dislike feeling financially restricted.

By making smart financial decisions and being open to change you can find cheap ways to live. 

In this post, you’re going to learn the cheapest way to live along with cheap alternative housing ideas.

After reading this post, you’ll know how to live simply and cheaply and still enjoy life.

This post is all about the cheapest way to live.

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13 Best Tips for The Cheapest Way To Live

1. Move To a Cheaper Area

If you live in an expensive area chances are your essential expenses, such as rent will be higher. For example, people living in London will pay a lot more for housing than someone living in Kent. 

To adopt the cheapest way to live minimising these costs is crucial. 

One effective strategy is to relocate to a less expensive area. This will significantly reduce your rent or mortgage costs as well as your overall living expenses. 

It can also increase your quality of life because you will have less financial stress and more disposable income. 

Take some time to research the cost of living in other areas. Look at things like the average rent, grocery and transport costs. 

Also, consider the proximity to work, family, friends and the available amenities. Then compare the results to the costs of living in your current location. 

If there’s a potential to save money consider making the move. If relocating increases your work commute, try negotiating to work from home a few days a week or look for a remote job.

While moving is a big undertaking and may be challenging for some people it can provide substantial financial relief. 

2. Downsize

Downsizing your living space can be another effective way to cut your living costs. So if moving to a cheaper area isn’t an option consider moving to a smaller place within your current city. 

Smaller homes or apartments are generally cheaper to rent or buy and they come with lower bills and maintenance costs. 

For example, going from a three-bedroom home to a spacious two-bedroom apartment will significantly reduce your living costs and save you money. 

You may have less space but there are ways to make it work. Start by decluttering and getting rid of the items you no longer need or use. 

This can also generate some extra cash through selling on online marketplaces like eBay and Facebook or garage sales. 

Once you have done this you will gain a better understanding of how much space you really need. You may even surprise yourself and realise you can live comfortably in a smaller home. 

With this knowledge, start searching for smaller homes or apartments that meet your needs. 

3. Get a Roommate

Do you have extra space in your home? Consider getting a roommate. This is an effective way to reduce your living costs and save money. 

Having a roommate allows you to split housing costs, share utility bills and even household responsibilities. Besides saving money it also makes your life easier. 

If you prefer not to have a full-time roommate you can rent out your spare room on a short-term basis through platforms like Airbnb.

This will be a great solution for tourists or working professionals who travel for work. If you live in a good location close to public transport your room will likely get booked up quickly.

You can use the extra income to cover your housing costs. 

4. Move Back Home

If you really want to find the cheapest way to live consider moving back home with your parents. 

I understand this decision may bring up a lot of emotions such as feeling like you are going backward. However, if you are lucky enough to have this option don’t look at it like that. Instead, see it as a temporary solution to save you money. 

Most parents won’t charge you rent which is a huge saving and your utility and food costs will be lower because you’ll be sharing them. 

Even if you’re not paying rent I recommend contributing in some way whether it’s helping with groceries, cooking or household chores.

By moving back home you can also benefit from spending more time with your family and receiving emotional support during challenging times.  

If you have financial goals such as paying off debt or saving for a downpayment utilise this time to work towards achieving them. 

5. Seek Work Covered Housing

Some jobs have housing included in their compensation package. 

This option is common in industries such as education, healthcare and some remote work positions. 

If you work in any of these industries and want to find the cheapest way to live this is a great option for you.  

Having work-covered housing can reduce or even eliminate your rent expenses. With lower housing costs you can allocate more money to savings and other financial goals. 

Since this housing is typically located near the workplace it can also minimise your commute time. 

Research job listings that include these benefits and be prepared to negotiate during the hiring process. This option will take some effort, but it will be worth it.

One thing to keep in mind is your employer may compensate for these perks with a lower wage. While that is not ideal you will still save a lot of money. 

6. Try Creative Housing Options

Thinking outside the box can lead to unique and affordable housing solutions. 

This will require you to come out of your comfort zone. But if you’re open to switching things up it can transform your current financial circumstances.   

There are numerous creative options to consider such as tiny homes which are cheaper to build and maintain due to their compact size. 

If you enjoy travelling and value flexibility house-sitting may be a good option for you. House-sitting involves staying in someone else’s home while they are away and taking care of their property and sometimes their pets as well. You can either get paid for this service or take advantage of free accommodation. 

You can also try living in a van or RV. This is a cost-effective option and great for those seeking an adventurous lifestyle. 

These options are great alternatives to renting an apartment because they are cheaper than traditional homes and will save you a lot of money. 

Cheapest Way To Live –  7 Hacks To Live on Little Money

7. Stick To a Budget

To find the cheapest way to live it’s essential to not only reduce your housing costs but also have a clear understanding of your finances. This involves creating and sticking to a budget.

A budget is crucial for managing your finances and will help you live within your means. Your budget should be simple, effective and focused on your essential expenses. 

Begin by tracking your expenses and make a list of all your essential costs such as housing, utilities, food and transportation. Any expenses outside of these should be kept to a minimum right now. 

While balance is important it’s crucial to prioritise your needs over wants until your financial situation improves. 

Cancel any unnecessary subscriptions, cut back on entertainment or find cheaper alternatives. Things might feel tight for a little while but it is temporary and for your greater good.

Once you have tracked your expenses and know all your numbers you can put your budget together. If you are a beginner and want some guidance you can read this post to learn how to create a budget

You can also grab my FREE printable budget planner below to help you get started. 

8. Cook at Home More

When you are trying to find the cheapest way to live, your food costs are one of the best areas in your budget to make some huge savings. 

One of the easiest ways to save money on food is by cooking at home more. Home-cooked meals are cheaper than eating out and they are healthier.

Meal planning for the week will help you use ingredients you already have at home and avoid buying takeaways. 

You can cook simple delicious meals using cheap foods to save money and stick to your budget. 

My current favourite cheap meals are

• Chicken a quinoa tray bake
• Burgel bowl
• Pasta salad

These meals utilise cheap ingredients that can be used for multiple dishes and they are easy to prepare. 

If you want some ideas for budget-friendly tasty meals check out my posts below

20 Extreme Budget Meals To Eat Well When Money Is Tight

20 Delicious Budget Lunch Ideas To Eat Well & Save Money

How To Meal Prep On a Budget & Save Money

However, if you don’t like meal planning or don’t know where to start the $5 meal plan might be the perfect option for you.

It’s a meal planning service that sends you tasty meals to your inbox every week for just $5 a month. Each meal costs less than $3 so it’s a great way to save time and money.

You can sign up here to try it out FREE for 14 days and see how well it works for you.

9. Keep Your Utility Costs Low

Reducing utility bills is an effective way to save money on monthly expenses. Utility bills are a huge part of your essential expenses but there are ways to control the amount you use and pay. 

You can invest in energy-efficient appliances and use a programmable thermostat to adjust the temperature when you’re not home. This will help you save on heating and cooling costs.

Simple actions like unplugging your devices when not in use, switching off the lights when you leave a room and turning off the shower while soaping and shampooing will also lower your bills. 

These habits will increase your awareness of utility use and make you more conscious of other ways to save energy. 

You can also save money on utilities by switching to a cheaper provider. You can use a price comparison website to search for deals in your area. If you find a good deal make the switch and start saving money. 

10. Find Ways To Make Extra Money

Finding ways to make extra money will provide additional financial security and help you achieve your financial goals faster. 

Reducing your essential costs will help you live cheaply but earning extra income will give you financial flexibility and make your life a lot easier. 

There are plenty of ways to make some extra cash such as freelancing, starting a side hustle, taking on gig work and reselling your items. 

If you’re looking for a quick and easy option you can sign up to Survey Junkie and get paid to give your opinion. 

Companies are always looking for people to participate in market research to get feedback on new products and services. So you can get paid to complete surveys.

As a reward for your participation, you can get paid cash via Paypal or receive free gift cards, it’s entirely your choice. 

You can sign up for Survey Junkie FREE here and make some cash in your spare time. 

11. Live Frugally

If you want to learn how to live frugally and save money consider adopting a frugal lifestyle. Living frugally involves making mindful choices about your spending and embracing a simpler life. 

This can be one of the cheapest ways to live and will help you save money and reduce clutter because you will be accumulating fewer possessions. 

Spending less money will also give you more control over your finances. 

Being frugal and living simply does not mean depriving yourself of the things you enjoy, it’s about finding alternatives. 

For example, you can have a girl’s night in and cook instead of going out, find free entertainment and take up a cheap hobby like drawing. 

You can read here to learn the best frugal living tips to help you save money without feeling broke. 

12. Spend Wisely

Spending money is inevitable even if you are trying to find the cheapest way to live. But if you are going to spend ensure you do it wisely. 

Before you make a purchase, pause and ask yourself if it is something you truly need. This practice can help you avoid making impulse buys and adopt a mindful approach to spending. 

For expensive items try to buy them during sales to get more value for your money. 

You can also use websites like Rakuten and TopCashback to get cashback on your purchases. This is a great money hack to earn cash while you shop.

13. Save What You Can

While exploring cheap ways to live it’s crucial to save what you can. 

Building a savings habit, even if it’s a small amount each month can improve your financial confidence and provide peace of mind. 

It may only be small amounts but over time it will add up. These savings can help you cover unexpected expenses or emergencies and work towards your financial goals like paying off debt or traveling.

The easiest way to make saving a habit is to automate it. Set up an automatic transfer to your savings account so that every payday you are saving something. 

By saving consistently you are prioritising your future self and building good money habits.

Final Thoughts on The Cheapest Way To Live

Living cheaply requires a combination of strategic decisions and daily habits. By seeking cheaper housing alternatives, saving money on essential living expenses and living frugally you can significantly reduce your cost of living.   

These strategies not only help you save money but also contribute to a more mindful and sustainable lifestyle. Whether you’re looking to pay off debt, save for a big purchase or simply live within your means these tips can help you achieve your financial goals.  

I hope you have found this post helpful and now have many ideas for the cheapest way to live. Which tip will you try? Let me know in the comments below. 

This post was all about the cheapest way to live.

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