Frugal Living Tips To Save Money When You Have a HCOL

Every bit someone who lives in a HCOL expanse, I tin attest to how difficult it tin exist to save money. Fifty-fifty as a physician, I have to be conscientious considering with my loftier paycheck likewise comes high income taxes (if you live in a land without income taxes, this becomes a bit easier). Frugal living has helped me to save judiciously each month while still investing and has non taken away my ability to enjoy myself.

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

To start:

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 equally the biggest greenbacks cows. Nonetheless, HCOL areas also tend to pay more than to help cover these costs.

Living in a HCOL

A common misconception about the loftier toll of living areas is that you won't be able to relieve money. That is not the case. Merely as information technology's true that living in a low cost of living area doesn't guarantee that you lot tin save more.

How Can You Live in a HCOL and Still Save?

Intermission Down Your Expenses

You have to break down your expenses. It doesn't have to exist super specific line by line budgeting in gild to live frugally, but you exercise demand to be enlightened of fixed and variable costs.

Fixed Costs

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

No matter what you accept to pay these.

Variable Costs

These are required costs, however, they vary each month depending on usage. For instance, 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, but they are required in order to fulfill your wants. Fixed and variable categories are your "demand".

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

Please do not add things to this category just considering people yous know are doing information technology!

Investment Costs

This is also not required, however, I give information technology a separate category considering I don't consider investments to be recreational. Rather this is a way to brand your coin work for yous.

Investments volition vary from person to person as well. This can include coin put into ETFs or mutual funds; in real estate investments; or the stock market, to give a few examples.

Non everyone has the power to practice this, but if you can, it'south worth noting that you lot can call back about this as either a regular payment into your investments or equally a percentage of your income. In other words, this can be fixed or variable.

How To Save In a HCOL

Why did I break 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 y'all can't do much well-nigh stock-still costs, the focus of these frugal living tips will be on your variable costs, the things you do have control over.

Past viewing it all in this way, I think information technology makes it easier to understand where you can brand changes, and so you also take a ameliorate handle on your fixed expenses for which you must make sure you lot cover.

I'm not going to get into detail nearly how to handle your expenses, but rather I will effort to give you ideas to salvage where you can. Some of these I've washed and still do. Some of it brand not seem like it'll do much for you, but let me tell you, every petty fleck that you save will add up.

So, the outset things you lot'll do

Take care of your fixed expenses
Invest consistently where you experience comfortable (the corporeality depends on your budget)
Salve into your emergency fund for a rainy day (at least 6 months worth)

Every and then frequently, I recommend you look over your stock-still expenses and telephone call your lenders, banks, providers, etc. and see if there are means to reduce this at all, or parcel payments so that you can save.

Recall also, in one case your emergency fund has been congenital upwards, the amounts that you were putting away there tin exist re-allocated where always you need them. (For case, I shifted my actress money to pay off my pupil loans)

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

Next, Develop a Frugal Living Mindset

Once your stock-still expenses are out of the mode, the residue is upward to you to control. In social club to abide by frugal living, you demand to become into that mindset. You are in command of where you spend your coin and yous should use that power to make sure you do everything possible to spend information technology wisely.

The biggest matter to understand, I retrieve, is that this entails living below your ways. Call back, just because y'all have the money, doesn't mean you should spend it.

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

don't purchase things unless you need them

This is peculiarly true in the beginning when y'all're starting out in your HCOL expanse. If you've just moved, then continue your recreational expenses to a minimum and run into first exactly where your coin is going, and what's the almost costly part of your 24-hour interval 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 state of affairs. I'll besides add together, that you should delay whatsoever lifestyle upgrades until you get the hang of managing your finances with your HCOL (due east.g. don't buy a brand new car right away).

Stretch your dollar every bit far equally it can go

When you do spend, get the most bang for your buck. For instance:

Wait for the best deals.

Compare rates. If y'all tin can online shop, then utilise ebates or other cashback apps to help you save. Bargain shop whenever possible – sales, outlet stores, etc.

Trust me, you don't need to pay total toll to get great quality items.

consider bulk spending

This can help yous salve in the long run, specially if yous accept families. Costco and Sam's Gild memberships piece of work really well here.

I'll also add gym memberships to this. Sometimes, paying upfront for an unabridged twelvemonth, for example, makes the calendar month to month cost cheaper.

Endeavor to interruption down the costs this way then that you understand exactly how much yous're spending in each situation!

Don't Sign Upward For Subscription Services

This is specifically for groceries and commitment services. I genuinely think they overcharge you. Then in that location's the aspect of you non picking your own produce and having to deal with what's called for you. I've been disappointed many times. It may be more efficient from a "saving time" standpoint, so if that's important to you and then get for it and find a service that is reliable that you lot trust. Just if you have the fourth dimension to go store yourself, I remember yous should.

Render items you don't use or similar

How many people go shopping, peculiarly online shopping, get your stuff, and maybe it doesn't fit right, or yous're kinda unsure. Now, how many forget to return those items sometimes? Arrive a point that if you purchase something and information technology's not working out, go and try to get your money back. Those few dollars hither and there really add together up.

Purchase Better Quality Items

Sometimes spending a fiddling more upfront tin salvage you in the long run. As I write this I'm thinking most clothes. Better quality wearing apparel last longer, which ways yous accept to replace them less often, which means you save on future costs.

Try your hand at DIY

For annihilation that needs to be stock-still – see if you can do it yourself showtime. Youtube is a great resources, as is a simple Google search. Must of the maintenance around your abode, or for your cars can be washed yourself. It takes a fiddling extra time out of your solar day, nonetheless, the savings can exist huge.

I'd likewise recommend yous aggrandize the DIY concept to other areas. Gardening, for instance. Make your own compost, purchase solar lights, and install them yourselves. For decorating there are tonssss of ideas on Pinterest and Instagram for smashing means to repurpose what you lot already have.

Solar day to day Spending

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

Save on utilities by fugitive high usage during expensive, acme hours of the day. You tin can also consider investing in something similar a Nest thermostat where you can command settings from your phone.
Don't purchase annihilation on credit unless you can pay it off right away (i.e. this double checks that you tin actually afford it!)
Think twice about your subscription services for anything. Practise yous really need Hulu if you lot already have Sling TV? Are yous actually reading the magazines that show up at your door each month? How many HelloFresh meals take yous actually had/made or similar?
Consider disbelieve grocery stores – trust me, they're fine. You don't have to use them for everything, but certain items hither can save you a lot.
Endeavour to melt at home versus eating out and effort to reduce nutrient waste

An example of utilities and water, there are times where the cost of usage is much college considering that's when information technology's anticipated that people demand to use more. To give an case, my expanse in California has a peak time of 4 pm to 9 pm. I avoid turning on the dishwasher or doing laundry during those hours. I as well effort not to take the Air-conditioning or heater on then either. I have noticed a meaning drop in my bills by trying to be cognizant of this.

For fun

Going on adventures around your new domicile tin can exist super exciting, however many of them tin toll you. Don't castor off the free things to do in your new hometown. For instance:

Visit parks, museums, go to the beach (if you live nearly one), go hiking, play outdoor sports, get for picnics

If yous're unsure near how to afford a vacation, then consider staycations over large international trips – especially in the get-go when yous're even so trying to effigy out your spending and saving ability. When yous exercise continue international trips, create a travel upkeep, and save up for them separately.

When y'all do programme an evening out on the boondocks or to get out to consume, wait for and attend happy hours, and look for discount events and then that you don't have to pay total toll for those drinks. I'd also use Yelp check-ins. Often, checking in to a eating place or bar will get you a free appetizer or drink. Yous just take to show the waitstaff your app!

A comment about the frugal living mindset

I'd similar to but say, that everyone'south level of tolerance or willingness to go the altitude to save will be unlike. The differences arise as a upshot of our priorities and what sacrifices we are willing to make. For example, for me, I discover it worth it to drive a fiddling farther abroad in society to save on groceries. Others, though, may non detect that kind of effort to be worth their time.

The thought hither is to discover what works for you and capitalize on information technology. Sometimes we don't know how or where we can cut costs until nosotros endeavour. So, get out there and see which of these frugal living tips help you lot salvage, and contain whatever works into your regular routines.

Adjusting to a HCOL Surface area

Adjusting to a high cost of living, and getting into that frugal living mindset, can be really hard and tin take time. The biggest thing is to give yourself that time to settle down and figure out what your expenses are. One time you know and get the hang of what to expect, it becomes much easier to splurge here and in that location or treat yourself.

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

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

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

What Happens When Y'all Tin't Save?

At some bespeak, cutting expenses will reach a plateau. There's only so much you tin do peculiarly in a HCOL area. Plus, there's the whole "needing to have fun" aspects of life as well. At that place'due south no point in saving so much and working and so hard to cut costs that you lot stop enjoying yourself, or end up super stressed out. While information technology'due south of import to do save and invest, life is brusque and also needs to be lived.

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

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

I would as well debate, if possible, to negotiate a higher salary when y'all're able to. Too ofttimes money is left on the table considering nosotros are fearful of asking for it!

Some Intangible Money Saving Moves

This department isn't about frugal living, however, it is a mode to increase your net worth and improve your power to salve. I call these intangible because y'all won't necessarily encounter your banking concern rest become up right abroad with actual cash. Rather, you will encounter a difference in future savings, or save on time to come expenses. Something intangible may not exist as exciting as seeing something tangible like your banking concern remainder going up, however, these are super constructive ways to save a ton of cash and ultimately increase your net worth.

Tackling Debt

This is and will always be something that I argue for: pay off your debts.

The more debt you have, the more than payments yous take to make each month, and the harder it is to save. All the same, if y'all're able to abide by even some of these frugal living tips and send extra money towards paying down all that you owe, you lot will come up out winning on many fronts.

For instance:

The final corporeality you repay will exist far less than if you go on making minimum payments considering you volition save on interest aggregating.
Your ability to salvage Afterwards you're debt-free will be exponentially college and faster.
Your ability to actually go after those lifestyle upgrades yous desire will also amend as you will easily be able to take on new debt (if you want) for those purchases.

For anyone who thinks that paying debt reduces their ability to live and salve at present: think of each repayment as a saving in interest. BAM that's your savings! Information technology'due south not literal coin in the bank now, simply it is literal coin in the banking company in your future. And yes, the future matters likewise :).

Retirement

This is not a savings account that you have admission to, merely it is an important one to have and think nearly. I know someone making 20k + per calendar month after taxes and pours all of it into her educatee loans (yay!), just is Not putting away for retirement…at all.

That'southward not good either.

One way to view this: everything you stock away into retirement accounts, especially pretax accounts, will save you in taxes each year. Over the concluding few years, I've worked less, saved more than into my pretax retirement accounts, and taken domicile the same amount after taxes. It'south kind of insane to think almost.

Bundle Payments

Expenses like car and rental/homeowners insurance? Encounter if y'all can bundle them. Often you lot'll get a discount this fashion.

To Summarize

These frugal living tips and coin-saving moves have helped me to pay off debts, buy a new habitation, and still live my life in a way that is fun and comfortable for me. My priority is to travel, and so much of my recreational expense goes there.

By developing a frugal living mindset and being careful about my spending I'm still able to save while living in a high cost of living area. Don't become me wrong, I'll yet splurge and have my moments of "lets practice this", but my overall lifestyle reflects one that lives beneath my ways.

You lot tin can start living frugally at whatsoever time and still savor yourself and have luxuries in your budget that are personal to you. As you can see, many of my examples aren't just about saving money, but about spending it in the best manner possible. Endeavour some of these tips and see if they help you!

Images courtesy of unsplash.

Sanjana is a physician anesthesiologist, gorging traveler, and entrepreneur. She founded The Female Professional in order to give women a voice, a community, and provide resource to help them overcome hurdles and achieve success. With her experiences as a physician, as a CEO of a startup, and as a author, she understands the struggles and frustrations that women face. She as well understands what information technology takes to move past those things and come out on pinnacle. Through this platform, Sanjana aims to empower women to be their all-time, authentic, selves, reach work/life balance, and alive life to the fullest.

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