How to live on $13,000 a year

10 Ways Millennials Can Save Money
10 Ways Millennials Can Save Money

Frugal, Not Cheap

Being frugal might sound like it's about sacrifice and giving up luxury, but for the couple behind the popular blog, it's anything but. "We don't consider our lifestyle to be one of deprivation," says Mrs. Frugalwoods (they use pen names on the blog and asked to remain anonymous to protect their day jobs). The 31-year-olds might not have the latest iPhone or subscribe to a full cable package, but they plan to retire at age 33 and live the life of their dreams in the Vermont woods. If you'd like to replicate their path, here are 10 of their strategies.

Find creative ways to have small luxuries you enjoy.

The couple loves drinking carbonated water, but constantly buying bottles of Perrier or SodaStream replacement canisters is not going to allow you to live on $13,000 a year, as the couple does. (They earn far more in their office jobs but opt to save the majority of their money.) Instead of drinking only tap water, they figured out how to get a CO2 tank for much less (by buying directly from a supply shop) and connect it to their SodaStream to make the drink.

Be flexible about where you live.

The Frugalwoods couple is currently searching for their dream homestead to retire to in 2017. They have settled on finding a property in a rural area of Vermont, but otherwise, they are pretty flexible about the specifics. If the land has maple trees, then they'll possibly collect and sell maple syrup; if the property has apple trees, then they'll pursue that agricultural route for fun and potential profit. Whatever the land offers, they are prepared to either build a new home or live in a house that is already built.

Insource as much as possible.

Yes, insource – the opposite of outsource. Instead of paying someone to fix a leaky toilet, cut your hair or clean your home, you can handle all those tasks yourself. The Frugalwoods couple does just that, and while some tasks might take extra time, they say overall the strategy frees up their schedule. There's no meeting repairmen or scheduling salon appointments to worry about.

Lose your vanity.

Mrs. Frugalwoods has eschewed almost all makeup and new clothes. She says the decision has actually made her feel less self-conscious and more comfortable in her own skin. Instead of constantly fighting against acne or covering it up, she has made her peace with any imperfections. She says in addition to saving money, she also likes herself more. "I don't need to spend money in order to feel good about myself or be beautiful," she recently wrote on her blog.

Stop by thrift stores.

When Mrs. Frugalwoods committed to buying no new clothes, it didn't mean forgoing all fashion. In fact, she's pulled together stylish outfits from hand-me-downs, thrift shop finds and all the pieces in her closet.

Learn to cook.

They eay almost every meal at home, and they also make liberal use of their freezer so they always have premade meals ready to go if they don't feel like laboring over the stove. They avoid purchasing packaged food (when it comes to snacks and cookies, they make their own) and rigorously compare prices to make sure they're snagging good deals on everything from nuts to oats.

Find free stuff.

Mr. and Mrs. Frugalwoods visits free museums, go to the library to borrow books and movies, walk around town, have picnics in public spots and catch outdoor concerts. That way, their entertainment budget is close to nothing, but they're still enjoying their weekends. Date nights comprise of cooking a special meal at home.

Find cheap hobbies.

The blogging couple enjoys writing, singing, hiking, walking, reading, camping and yoga. All of those activities are free or low-cost and are easily done with others for quality bonding time. Some of their hobbies, such as woodworking and welding, might even turn into money-earning pursuits one day, after they move to their homestead.

Reject consumer culture.

It's easy to get swept up into thinking that you need to get frequent pedicures, new outfits and spend nights out at the latest restaurant opening, but over on the Frugalwoods blog, those assumptions are questioned. "Don't be a slave to cultural norms – just because other people throw money down the drain every weekend at the latest oxygen cocktail bar doesn't mean you should," the couple writes.

Give gifts that matter.

The couple does spend money on meaningful gifts, such as socks, coffee beans and a bread pan. They know family members will use those items, and they also reflect their frugal values, making it easier for their loved ones to enjoy simple luxuries, too.

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