I have lived in Luxembourg for five years, one of the most expensive countries in the world. 💰
Despite the high cost of living, I was able to save enough money to buy an apartment in Krakow after just one year here by living frugally. 😀
I moved from Poland to Luxembourg in February 2020, with only 2,000 euros saved.
However, by adopting frugal habits—especially during the COVID-19 pandemic—I saved 25,000 euros in a single year 💸, which I then put toward a property investment.
✨ To help you reach financial goals faster, even when living in an expensive place like Luxembourg, I have compiled a list of my favorite 10 frugal living tips. ✨
Table of Contents
What does it mean to live frugally?
Before we dig into the list, I want to explore more of the topic.
Living frugally means making smart and intentional choices to save money without cutting out all the fun!
It’s an economical way of living. 💰
You don’t have to set any strict limits, but just be careful with your money and look for ways to cut down on waste and avoid costs that are unnecessary.
Living frugally allows you to accomplish your financial goals faster while still paying for the things that truly matter. 💁♀️
10 Frugal Living Tips to Save Money
1. Budget Wisely for Monthly Expenses
- As soon as I get paid every month, the first part of it goes right to paying my rent and my bills. 💰
- Then, I put money into my savings account. An automated payment of €1,000 is scheduled to be made at the end of each month. On occasion, when my salary is higher or I receive bonuses, I am able to put away two to three thousand euros. If I am planning a trip, then I save a bit less, but the compound effect is key, so I always make sure to save something.
- The rest is allocated for monthly groceries and any extra expenses, such as visits to the doctor or any emergencies.
Just a little budgeting tip. ✨
Make sure you know exactly where your money is going each month by recording all of your expenditures in a Google sheet.
2. Cook at Home: The Real Savings
Dining out in Luxembourg is quite expensive, and prices have only climbed since I moved here in 2020.
Our main way to save?
✨ Cooking and eating at home every day.
Sure, we indulge in the occasional date night at our favorite restaurant, but we prioritize saving for vacations over frequent meals out.
In Luxembourg, an average dinner for two costs us about €80—the same amount we’d typically spend on a week’s worth of groceries.
Frugal living for us means eating at home for the majority of the time and enjoying 100% travel dining, where meals are more affordable. 💖
3. Cut Back on Subscriptions and Memberships
It’s simple to sign up for subscriptions and memberships without realizing how quickly the costs add up.
Streaming services, apps, magazines, and gym memberships can significantly deplete your budget.
Here’s how I trimmed down my subscriptions to save more each month:
- Prioritize Essentials: I started by listing all my subscriptions and memberships, then asked myself if I was using each one enough to justify the cost. 🤔
- Gym Membership: I also realized I was spending way too much for my gym membership; it was 102 euros monthly, so I cancelled it. I still go to the gym 5–6 times a week, but now I am going together with my partner. He has this option that he pays only 30 euros, and every time he can bring one person with him, so I pay zero and am still going to the gym. 💪
But if you barely go to the gym and only pay for a membership, maybe it is time to say goodbye to this and start doing some home workouts and outdoor activities instead. 🏃♀️
By scaling back to only what I really use, I’ve cut my monthly expenses and freed up money for savings or other priorities!
4. Transportation Hacks: Save on Commuting Costs
One of the best ways to save on commute costs is by using your own bicycle. 🚴♀️
It also does keep you fit, and it’s often faster than sitting in traffic.
Public transportation is another excellent option, especially for saving on petrol or parking fees.
In fact, we are very lucky, as Luxembourg is the first country in the world that offers free public transportation. Allowing everyone—citizens and tourists alike—to use buses, trams, and trains for free all the time!
Isn’t it great?
Other affordable commuting ideas:
- Carpooling with coworkers to split fuel and parking fees.
- City bike rentals or shared scooters in regions that offer them for those without their own bike.
- Opting for trains over flights for nearby destinations to save on travel costs.
By combining these transportation hacks, you can drastically reduce commute costs while supporting a healthier lifestyle and eco-friendly habits. 💡
5. Avoid shopping malls to Save Money
Avoiding shopping malls and big box stores is one of the simplest ways to live frugally—even if it’s tempting to check out new items.
The reality is, we often buy things simply because they’re on display, not because we genuinely need them.
You can avoid those juicy sales that make you buy things you do not need if you simply do not go to the stores. 💁♀️
Instead, do something nice for yourself and stroll through the park, not through the mall.
I used to visit Oysho, one of my favorite stores, just to browse, but I would typically leave with a new item, such as another ultra-soft pajama. Then I’d realize I already had two just like it, and I’d feel awful about the money I’d spent.
So, I made a commitment to stop going to Oysho, and my budget started to improve immediately. 🚶♀️
Staying away from malls is a simple yet powerful way to save money and build more mindful spending habits each month.
6. Learn how to say ‘NO.’
Learning to say “no” to costly outings, luxury purchases, and trips that exceed your budget is a powerful step toward living frugally.
Just because others go out every weekend and spend €100 on cocktails doesn’t mean you need to follow your friends.
To be more frugal with money, consider staying home and enjoying a glass of wine or skipping the drink at all.
Think about it: if you put away €100 every weekend, you will have €400 per month. You can put that money for an index fund or a savings account. 💸
In a year, it gives you an extra 4,800 euros saved just by saying no to drinking out every weekend.
Do not feel obligated to please other people; start saying no.
Start budgeting and setting limits. ✨
Saying “no” to costly entertainment that isn’t within your budget can help you save more and reach financial goals faster.
7. Declutter Your House and Wardrobe to Earn Extra Cash
✨ A simple way to live frugally is to declutter your space and sell unused belongings.
Related: How to Declutter Your House in 30 Days With Absolute No Effort
Sort through your closet and put away anything you have not worn in the last six months.
Then you can sell them on Vinted and make some extra money.
Related: How I Made €500 in 3 Months Selling Used Clothes on Vinted
If you clean up and organize your home and wardrobe, you can see what you really have and avoid buying extra things in the future.
It’s a win-win—extra cash and a tidier home!
8. Embrace Minimalism to Avoid Impulse Buying
✨ Living a minimalist lifestyle can help you adopt a frugal lifestyle easier.
By choosing to keep only what you truly need, you train your brain to avoid impulse buys and cut down on unnecessary spending.
A great tip is to ask yourself, “Do I really need this, or is it just adding clutter?” 🤔
Embracing minimalism as part of your frugal living journey makes it easier to prioritize essentials, reduce stress, and reach your savings goals faster.
Related: Master Minimalism with This Beginner’s Guide
9. Buy Used Instead of New
✨ Buying pre-owned items instead of brand new ones is a super frugal way to live.
First, it saves you a lot of money.
Second, good-used things can last just as long.
Some of my favorite clothes actually came from second-hand stores and have been with me for over a decade.
As you might know, new cars lose a lot of value as soon as they leave the dealership.
Buying a car is not a great financial decision; if you have some savings, you should rather invest them in real estate or other funds.
But if you really need a car, you should opt for a used one.
Consider also paying in cash to avoid loans and keep more money in your bank. 💸
If you are looking for some furniture for your home, check the Facebook Marketplace, as this is a great source for super cheap items.
We got a nice sofa like new for just 300 euros, while in IKEA it costs currently 1500 euros.
So if you think about it, frugal living is very easy; you just have to look for some gently used items like clothes, furniture, or electronics, and this will help you save tons of money and also help the environment.
10. Make a List of Groceries You Actually Need
✨ And here’s the final frugal living tip: make a list before your grocery shopping with only the essentials.
- Before heading out, check your fridge for what you already have and what is missing.
- Plan what you will cook or bake beforehand. Planning your meals for the week is also a good idea.
- Then put all the missing ingredients on your list. I am using a notes app on my iPhone every time I am about to go to a supermarket.
Once I am there, I check on my phone, and I know exactly what to put in my basket.
This helps me from overbuying, overspending, and throwing away food that I didn’t manage to eat. So cutting down on food waste—another win for frugal living! 💡
Stick to the list, and you’ll be amazed at how much you can save each month with this simple trick.
It’s a powerful habit for anyone wanting to live frugally while still eating well.
Final Thoughts on My 10 Frugal Living Tips in Expensive Places
Although it may appear difficult, living frugally in a country with high costs is absolutely doable and well worth the effort! 💁♀️
My savings skyrocketed significantly once I stopped eating out and purchasing new clothing (after a wardrobe decluttering session, I discovered how many lovely items I already had).
I felt accomplished when I began investing the money I would have spent on those pointless things.
✨ You can save money without sacrificing your quality of life if you learn to budget carefully, eliminate wasteful spending, and shop with purpose.
These frugal living tips are all about balance: focusing on what truly matters to you and making small changes that help you save without sacrificing your quality of life.
Start with a few of these tips and make them part of your routine.
You’ll be amazed at the results!
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