YouGov data showed that 75% of U.S. adults were using money more cautiously in 2025. Rethinking your lifestyle, including being more frugal, can help improve your financial security as costs rise.
In a TikTok post, Ramsey Solutions money expert George Kamel outlined 12 key rules for living frugally without sacrificing all the joys.
1. Avoid Trends
Kamel described trendy financing options — such as credit cards; buy now, pay later (BNPL) plans; and home equity lines of credit — as “traps” to avoid. Besides risking interest charges and unmanageable payments, using debt increases your chance of making unwise purchases and overspending.
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2. Pay for Quality
Don’t assume that buying the shirt, mattress or luggage with the lowest price tag is smart for your finances, as you might end up replacing it sooner than expected. Kamel recommended splurging on higher-quality items for lower long-term costs, even if it means waiting.
3. Make Sacrifices
You might need to sell items or hustle to get through a difficult time. Given that housing and transportation are Americans’ top two expenses, according to the Bureau of Labor Statistics, it’s not surprising that Kamel listed unaffordable cars and homes as what to give up.
4. Earn Interest, Don’t Pay It
Paying someone interest on debt keeps you broke and steals money you could invest. Instead, put your money to work so it earns compound interest and grows your wealth.
5. Budget Your Money
Rather than spending money without a plan, take Kamel’s advice to budget and spend each dollar purposefully. He also reframed budgeting as a “permission” to spend rather than a “restriction.”
6. Research Purchases
Thoroughly research purchase options online, including prices at multiple retailers, promo codes and customer reviews. Kamel noted this simple practice can lead to substantial savings.
7. Use Cash, Not Credit
EMarketer estimated that Americans will spend more than $4 trillion on credit cards in 2026. While costly debt is the norm, Kamel recommended using only cash and holding off on purchases you can’t afford. Consider sinking funds for major purchases.
8. Don’t Spend To Save
While it’s smart to take advantage of sales and coupons on necessary purchases, it can also lead to unnecessary spending due to FOMO, or fear of missing out. Kamel advised sticking to planned purchases and not buying something just because it’s cheap.
9. Be Realistically Frugal
Excessive frugality can make you miserable and lead you to give up on your plan. You should still incorporate fun and enjoyment into your life and make intense frugality only temporary.
“Live like no one else for a few years, so later, you can live and give like no one else,” Kamel said.
10. Know Saving’s Limits
While cutting expenses is great, you’ll eventually run out of new ways to save. Kamel advised also making more money, such as through a raise or side gig, and investing to become wealthy.
11. Practice Minimalism
Rather than giving you peace, having more stuff can hurt your finances and clutter your space. So think wisely before making your next purchase.
12. Focus on Freedom
Kamel recommended making decisions that give you freedom, whether that means less stress or more flexibility to achieve your financial goals. His version of freedom is being debt-free.
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This article originally appeared on GOBankingRates.com: 12 Key Rules To Live a Frugal Life in 2026, According to This Ramsey Expert
