bodenimages/getty images/istockphoto
Commitment to our readers
The GOBankingRates editorial team is committed to providing you with unbiased reviews and information. We use data-driven methods to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our review methodology for products and services.
20 years
Helping you become richer
trusted by
millions of readers
Being frugal sometimes feels like a dirty little secret. You clip coupons, skip fancy lattes and patch your clothes instead of tossing them — only to be teased for it.
But here’s the thing — a lot of those so-called “cheap” habits are actually wise financial moves, especially with the constant concerns of a potential recession.
Andreas Jones, founder and editor of , said frugal habits, while often mocked, reflect a broader culture of individualism and self-reliance. a little thrifty.
“Things like splitting two-ply toilet paper into single-ply sheets or turning off the air conditioning in the middle of a heatwave may seem extreme, but they stem from a deep focus on stretching every dollar, especially in areas with high costs of living or medical debt,” Jones said.
Here’s a look at the frugal behaviors people love to make fun of Americans for — and why you should keep doing so.
1. Excessive Couponing
From what he’s seen with his clients, Andrew Lokenath, money expert and owner of BeFluentInFinanceSaid that excessive couponing gets the most attention and jokes.
“But the thing is – I’ve seen people save over $300 per month just by spending a few hours organizing their coupons.”
One of her clients built a $15,000 emergency fund in 18 months through couponing alone.
“Yes, it takes time to clip and organize, but the ROI is fantastic,” he said.
2. Buying generic brands
Buying generic brands is another thing people love to make fun of. Working in finance, Lokenath said he can’t count how many times he’s heard “but name brands taste better.”
“Listen, I’ve done blind taste tests with my customers — they literally can’t tell the difference 80% of the time,” Lokenath said.
He said the markup on big-name brands is sometimes 50% higher just for the beautiful packaging. This is real money you are throwing away.
In most cases, generic products are made in the same factories with nearly identical ingredients. You’re paying extra for the logo, not quality.
From pantry staples and cleaning supplies to over-the-counter medications, switching to store brands can cut hundreds from your annual grocery bill without making too many changes to your actual lifestyle.
3. Maintaining a Fixed Thermostat
Lokenath mentioned another ridiculous habit people had of keeping the thermostat at 68 degrees in the winter and 78 degrees in the summer.
“People act like you’re torturing yourself, but your body adapts in about two weeks,” he said.
He personally saved $175 a month last summer by doing this — and he lives in Texas.
his advice? Wear a sweater in winter, use a fan in summer. Your bank account will thank you.
Energy costs can quietly drain your budget, especially during peak season. But small adjustments — like optimizing your thermostat settings, sealing out drafts or using blackout curtains — can lead to big savings without sacrificing too much comfort. Most people don’t notice a change after a few days, and the money you save adds up month after month.
4. Driving old cars
Driving an old car is a big thing to laugh about, but Lokenath has analyzed thousands of financial portfolios and highlighted that the people with the most wealth often drive cars that are 10 years old.
“One of my wealthiest clients drives a 2008 Toyota while his friends lease new BMWs. The difference: He’s invested more than $2 million while they’re drowning in car payments,” he said.
Although new cars may look impressive, they are also depreciating assets that lose value the moment you drive them too far. Older, reliable vehicles can save you thousands over the years – not just on car payments, but also on insurance, registration fees and even some taxes.
Plus, with regular maintenance, many cars can easily exceed 200,000 miles. Driving an old car is not a sign that you are bankrupt; This is often a quiet sign that your financial priorities are in order.
5. Meal preparation and bringing lunch to work
Sure, your coworkers may tease you about never going out, but Lokenath said he had a client who saved $4,800 in a year just by getting a brown bag.
“It’s a lovely vacation or a solid investment contribution,” he said.
Giving up that $12 office salad or $15 sandwich may not seem like much at first, but those daily lunches add up fast. Meal prepping isn’t just about saving money; It’s also healthier, often tastier and gives you more control over what you’re eating.
Even preparing just three to four meals a week can add up to serious savings over time. And what if someone takes a look at your Tupperware? Just remember: Your saved money can fuel your next vacation, emergency fund, or investment account — while they’re wondering where their money went.
6. Using an old phone
Lokenath said, using a flip phone or keeping an old smartphone with you all the time makes people think that you are living in the Stone Age.
Reality: He said the average American spends $1,200 or more a year on their Smartphone Plus plan.
His own phone is four years old, works fine and costs him $25 a month through a discount carrier.
“That’s an extra $1,000 every year in my investment account,” he said.
7. Reusing storage bags or washing disposable items
This may sound crazy until you do the math. These small habits can save just $20 to $30 monthly, but then add up over decades, Lokenath said.
He’s seen families send kids to college with money saved through a variety of small frugal habits.
Frugality isn’t about being cheap – it’s about being intentional. If reusing a few items means cutting your household expenses by $300 to $400 per year, that’s money you can redirect toward bigger goals: debt payments, investments, travel or breathing easier when unexpected expenses arise.
8. Living in a tiny house
Living in a house smaller than you can afford is probably the most ridiculous option – especially in condition-ridden areas.
But here’s what Lokenath said he sees in his practice: The families with the most financial security often live in modest homes.
They are making up the difference and building real wealth while their house-poor neighbors are struggling to maintain those huge properties.
The reality is, a bigger home often comes with bigger headaches – higher utility bills, higher property taxes, more maintenance and more stuff to fill that space.
Meanwhile, people living slightly below their means are quietly maxing out their retirement accounts, saving for their children’s education or even reaching financial independence early.
It’s easy to get dazzled by granite countertops and three-car garages, but financial freedom looks much better than a fancy mortgage. And when the economy declines or unexpected expenses arise? People in “smaller” homes often sleep better at night.
Bottom line: keep your eyes on the prize
From Lokenath’s experience, most people who scoff at these habits are usually stressed about money and living paycheck-to-paycheck.
He added, “Meanwhile, my frugal customers are quietly making money and sleeping better at night. It’s not a bad thing to be made fun of on the way to the bank.”
His top words of wisdom: Extreme frugality isn’t about deprivation — it’s about being intentional with your resources. And based on what they’ve seen over 15 years in finance, people who adopt these habits have far more choices and freedom in the future.
