Frugal Living Tips To Save Money When You Have a HCOL

As someone who lives in a HCOL area, I tin attest to how hard it can be to save money. Fifty-fifty as a physician, I have to be conscientious because with my high paycheck also comes high income taxes (if you lot alive in a country without income taxes, this becomes a fleck easier). Frugal living has helped me to relieve judiciously each month while still investing and has not taken away my ability to relish myself.

What follows in this post are some frugal living tips that I have incorporated in my life, that have helped me to spend wisely on things that truly matter to me, and take helped me avoid lifestyle inflation.

To showtime:

What is HCOL?

HCOL stands for "high cost of living". Depending on where y'all alive, this can vary greatly. Some popular HCOL areas include New York and California (I've somehow managed to live in both).

Living costs generally include housing, food, and transportation as the biggest cash cows. However, HCOL areas also tend to pay more to assist cover these costs.

Living in a HCOL

A common misconception about the high cost of living areas is that you won't exist able to salve coin. That is not the case. Just as it'southward truthful that living in a low cost of living area doesn't guarantee that you tin save more.

How Tin You Alive in a HCOL and Withal Save?

Interruption Down Your Expenses

You accept to suspension down your expenses. Information technology doesn't take to be super specific line by line budgeting in guild to live frugally, but you do need to be enlightened of fixed and variable costs.

Stock-still Costs

These are as they merits, stock-still. This will include your rent/mortgage, automobile payments, insurance payments, etc. You have to pay these each month and they are constant, meaning the price doesn't fluctuate on each neb (unless of course you refinance, or re-negotiate something).

No matter what you have to pay these.

Variable Costs

These are required costs, however, they vary each calendar month depending on usage. For example, groceries, electricity bills, water bills, gas costs, etc.

Recreational Costs

This is the category we use for fun. These are not required for day to day life, only they are required in guild to fulfill your wants. Fixed and variable categories are your "need".

What goes in this category volition be different depending on your wants, your bucket list, your goals in life and the things that make you happy.

Delight do non add together things to this category just because people y'all know are doing it!

Investment Costs

This is too not required, nevertheless, I give information technology a separate category because I don't consider investments to be recreational. Rather this is a way to make your money work for yous.

Investments will vary from person to person too. This can include money put into ETFs or mutual funds; in existent estate investments; or the stock market, to give a few examples.

Not everyone has the ability to exercise this, but if you tin, it's worth noting that you can recollect about this as either a regular payment into your investments or every bit a percentage of your income. In other words, this tin be stock-still or variable.

How To Salvage In a HCOL

Why did I interruption up the costs the way I did? I believe that we have to view everything as either in our control or out of it. Since you can't do much about fixed costs, the focus of these frugal living tips will be on your variable costs, the things you lot do have control over.

By viewing it all in this manner, I think information technology makes it easier to sympathize where you can make changes, so you also take a better handle on your fixed expenses for which you must make sure you cover.

I'chiliad not going to go into detail about how to handle your expenses, but rather I will attempt to give you ideas to save where you can. Some of these I've done and still do. Some of it make not seem like information technology'll do much for yous, but let me tell you, every little bit that you salve will add up.

So, the first things you'll do

Accept care of your fixed expenses
Invest consistently where you feel comfy (the amount depends on your budget)
Save into your emergency fund for a rainy day (at least half dozen months worth)

Every so often, I recommend y'all look over your fixed expenses and telephone call your lenders, banks, providers, etc. and run across if at that place are ways to reduce this at all, or bundle payments so that you lot can salve.

Remember besides, once your emergency fund has been built upwards, the amounts that you were putting away there can be re-allocated where ever you need them. (For instance, I shifted my actress coin to pay off my educatee loans)

Of form investments and emergency funds aren't necessarily required in life, but they are highly recommended.

Next, Develop a Frugal Living Mindset

Once your stock-still expenses are out of the fashion, the rest is up to you to control. In order to abide by frugal living, y'all need to go into that mindset. You are in control of where you spend your money and you lot should utilise that power to make sure yous do everything possible to spend it wisely.

The biggest matter to understand, I recollect, is that this entails living below your ways. Remember, just because you have the coin, doesn't mean you should spend it.

Some frugal living tips that I keep in mind and take with me wherever I get:

don't buy things unless you need them

This is especially true in the beginning when you're starting out in your HCOL surface area. If you lot've only moved, then keep your recreational expenses to a minimum and come across first exactly where your money is going, and what's the most costly role of your twenty-four hour period to day.

don't get sucked into lifestyle inflation

Lifestyle inflation is the worst. Ignore your neighbors and whatever they're doing. Focus instead on your own needs, expenses, and fiscal situation. I'll also add, that you should delay whatever lifestyle upgrades until you become the hang of managing your finances with your HCOL (e.g. don't buy a brand new auto right away).

Stretch your dollar as far as it tin can become

When you practice spend, get the most bang for your cadet. For example:

Look for the best deals.

Compare rates. If yous can online shop, then use ebates or other cashback apps to help you salve. Bargain shop whenever possible – sales, outlet stores, etc.

Trust me, y'all don't need to pay full price to go great quality items.

consider majority spending

This can help you lot relieve in the long run, especially if y'all have families. Costco and Sam'south Guild memberships piece of work actually well here.

I'll also add gym memberships to this. Sometimes, paying upfront for an entire year, for instance, makes the month to month cost cheaper.

Try to pause downwards the costs this mode so that y'all understand exactly how much you're spending in each situation!

Don't Sign Up For Subscription Services

This is specifically for groceries and commitment services. I genuinely call back they overcharge you. Then there's the attribute of yous non picking your own produce and having to deal with what'due south chosen for you lot. I've been disappointed many times. It may be more efficient from a "saving time" standpoint, so if that'southward important to you then go for it and find a service that is reliable that you trust. Just if you take the fourth dimension to go shop yourself, I call up you should.

Render items you don't use or like

How many people get shopping, particularly online shopping, get your stuff, and perchance it doesn't fit right, or yous're kinda unsure. Now, how many forget to return those items sometimes? Make it a bespeak that if you purchase something and it's non working out, go and try to become your money back. Those few dollars here and there actually add together upward.

Purchase Ameliorate Quality Items

Sometimes spending a little more upfront can save you in the long run. As I write this I'm thinking about wearing apparel. Better quality clothes terminal longer, which means you take to supercede them less ofttimes, which ways you save on futurity costs.

Attempt your hand at DIY

For anything that needs to be fixed – see if y'all can practice it yourself start. Youtube is a bang-up resources, as is a elementary Google search. Must of the maintenance around your home, or for your cars can be done yourself. It takes a picayune actress time out of your day, withal, the savings can exist huge.

I'd also recommend yous expand the DIY concept to other areas. Gardening, for case. Brand your own compost, buy solar lights, and install them yourselves. For decorating there are tonssss of ideas on Pinterest and Instagram for smashing means to repurpose what you already have.

Day to day Spending

For the random stuff you can practise on a daily basis, consider this:

Save on utilities by avoiding high usage during expensive, peak hours of the 24-hour interval. You can also consider investing in something similar a Nest thermostat where y'all tin can control settings from your phone.
Don't purchase annihilation on credit unless you tin pay it off correct away (i.eastward. this double checks that yous can really afford information technology!)
Think twice about your subscription services for anything. Practise you lot really need Hulu if you already have Sling Tv? Are you lot actually reading the magazines that show upwards at your door each month? How many HelloFresh meals have you actually had/fabricated or similar?
Consider discount grocery stores – trust me, they're fine. Y'all don't have to utilise them for everything, but certain items here tin salve you a lot.
Endeavor to cook at home versus eating out and attempt to reduce food waste

An instance of utilities and water, there are times where the cost of usage is much higher because that'southward when information technology's anticipated that people need to employ more. To give an example, my area in California has a peak fourth dimension of 4 pm to nine pm. I avoid turning on the dishwasher or doing laundry during those hours. I also try not to have the AC or heater on and then either. I have noticed a significant drop in my bills by trying to exist cognizant of this.

For fun

Going on adventures effectually your new home can exist super exciting, withal many of them can toll you. Don't castor off the gratuitous things to exercise in your new hometown. For instance:

Visit parks, museums, go to the beach (if yous alive about one), go hiking, play outdoor sports, become for picnics

If you're unsure well-nigh how to beget a holiday, so consider staycations over big international trips – especially in the beginning when you're still trying to figure out your spending and saving ability. When you practise go on international trips, create a travel upkeep, and salvage up for them separately.

When you do program an evening out on the boondocks or to become out to eat, expect for and attend happy hours, and expect for discount events then that you don't accept to pay total price for those drinks. I'd as well utilize Yelp check-ins. Frequently, checking in to a eating house or bar will get you a gratuitous appetizer or potable. You just have to testify the waitstaff your app!

A comment about the frugal living mindset

I'd like to but say, that everyone's level of tolerance or willingness to get the distance to save volition exist dissimilar. The differences arise as a result of our priorities and what sacrifices we are willing to brand. For instance, for me, I find it worth it to drive a little farther away in society to save on groceries. Others, though, may not discover that kind of effort to be worth their fourth dimension.

The idea hither is to notice what works for y'all and capitalize on it. Sometimes we don't know how or where we can cutting costs until nosotros try. Then, get out there and see which of these frugal living tips assist you save, and comprise whatever works into your regular routines.

Adjusting to a HCOL Area

Adjusting to a high cost of living, and getting into that frugal living mindset, tin can be really hard and can accept time. The biggest thing is to requite yourself that time to settle down and figure out what your expenses are. Once you know and become the hang of what to look, it becomes much easier to splurge here and at that place or care for yourself.

To give an example of when I starting time moved to southern California:

I moved to a cheaper rental (relatively speaking)
I had an old auto (2003 model) and I kept it for at least 2 years later moving
In the beginning, I just went wherever I could find supplies. As time went on, I did a little more inquiry and became more than specific with my shopping
I didn't buy any new wearing apparel/shoes or practice whatsoever shopping for fun for the first six months
I needed new furniture, so I focused on but figuring that out in the starting time
Much of the local exploring I did was by walking/wandering effectually the different neighborhoods

These steps helped me to avert extra costs for the outset few months while I adjusted to my new home.

What Happens When You Tin't Save?

At some point, cutting expenses will reach a plateau. There's simply so much yous can practise especially in a HCOL area. Plus, there's the whole "needing to have fun" aspects of life likewise. There's no point in saving then much and working so hard to cut costs that you stop enjoying yourself, or end upward super stressed out. While information technology's important to exercise salve and invest, life is short and also needs to be lived.

In which instance, if you lot're finding it difficult to save, despite living frugally, or are finding yourself to be super unhappy, and so maybe consider culling ways to increase your income or make extra money.

This can mean you work longer hours, extra shifts (for doctors this may mean extra phone call), or, for some, y'all may need some other job to help provide yous with the cushion you lot're looking for. I know several physicians who accept extra calls when they know they have big expenses coming up, like home renovations or a large trip. Then this is not necessarily something y'all'd have to do all the time.

I would also argue, if possible, to negotiate a higher salary when you're able to. Too ofttimes coin is left on the table because we are fearful of request for information technology!

Some Intangible Money Saving Moves

This section isn't almost frugal living, however, it is a way to increase your net worth and improve your ability to save. I call these intangible because you won't necessarily run into your bank rest go upwards right away with actual cash. Rather, y'all volition see a departure in hereafter savings, or save on future expenses. Something intangible may not be every bit exciting equally seeing something tangible similar your bank residual going up, withal, these are super constructive means to salve a ton of cash and ultimately increase your net worth.

Tackling Debt

This is and will ever be something that I contend for: pay off your debts.

The more than debt you accept, the more payments you accept to make each calendar month, and the harder information technology is to save. Even so, if you're able to bide by fifty-fifty some of these frugal living tips and send extra money towards paying down all that you owe, y'all will come out winning on many fronts.

For instance:

The final corporeality yous repay will exist far less than if you continue making minimum payments because you will salvage on interest accumulation.
Your ability to save Later y'all're debt-costless volition be exponentially higher and faster.
Your ability to really go later on those lifestyle upgrades you want will too amend as yous will hands be able to accept on new debt (if you want) for those purchases.

For anyone who thinks that paying debt reduces their ability to live and salve now: think of each repayment every bit a saving in involvement. BAM that's your savings! Information technology's non literal money in the bank now, but it is literal money in the banking company in your future. And yeah, the futurity matters besides :).

Retirement

This is non a savings account that you have admission to, just information technology is an important ane to have and recall about. I know someone making 20k + per calendar month later taxes and pours all of information technology into her student loans (yay!), only is NOT putting away for retirement…at all.

That's not good either.

One way to view this: everything you stock abroad into retirement accounts, especially pretax accounts, will save you in taxes each year. Over the last few years, I've worked less, saved more than into my pretax retirement accounts, and taken home the same amount later on taxes. It's kind of insane to think about.

Parcel Payments

Expenses like car and rental/homeowners insurance? Run across if you lot tin bundle them. Frequently yous'll get a discount this manner.

To Summarize

These frugal living tips and money-saving moves accept helped me to pay off debts, buy a new abode, and all the same live my life in a way that is fun and comfy for me. My priority is to travel, and then much of my recreational expense goes there.

By developing a frugal living mindset and being careful about my spending I'k withal able to save while living in a high cost of living surface area. Don't get me wrong, I'll however splurge and have my moments of "lets practise this", but my overall lifestyle reflects one that lives below my means.

You tin can start living frugally at whatsoever time and still enjoy yourself and have luxuries in your budget that are personal to you. As you can see, many of my examples aren't only about saving coin, only nearly spending information technology in the all-time mode possible. Try some of these tips and run into if they assistance you lot!

Images courtesy of unsplash.

Sanjana is a physician anesthesiologist, avid traveler, and entrepreneur. She founded The Female Professional person in lodge to give women a voice, a community, and provide resources to help them overcome hurdles and achieve success. With her experiences as a physician, as a CEO of a startup, and as a writer, she understands the struggles and frustrations that women face. She also understands what it takes to move past those things and come up out on top. Through this platform, Sanjana aims to empower women to be their best, authentic, selves, attain work/life balance, and alive life to the fullest.

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