Whether you call it frugality, minimalism, or just being broke, a lot of people are desperately looking for ways to live on the least amount of money possible. Whether they want to save for the future or pay off current debts, there is really no bad reason to want to reduce spending. And it can be done!
We decided to take a look at just a few radical examples of frugal living to try and figure out just how little a person can live on in 2022.
What’s Ahead:
Example #1: Young, healthy, 20-something individual living in NYC
Apartment
Since it’s practically impossible to live in a city by yourself for really cheap (and still feel relatively safe), I’m going to say this person lives with two other roommates.
In NYC, a three-bedroom apartment costs (based on my extensive searches on Zillow, apartments.com, and Trulia) around $1,600-$1,800 without utilities. Including utilities, I’ll round up to each person paying $800-$900 a month (and that’s still for a pretty small place).
Now, if everyone wanted to spend as little as possible, this means there wouldn’t be internet or cable in the apartment. Each person would have to settle for coffee shop or library Wi-Fi.
Total so far: about $900
Phone service
Luckily, I’m basing this in NYC so there’s access to nearly every kind of pay-as-you-go cell phone service out there. It’s nearlyimpossible to operate without a phone, so a basic phone plan is the cheapest option.
TPO Mobile offers a 1GB, unlimited talk and text plan for just $21 a month (with auto-pay)—that’s a pretty basic plan. The 2GB plan goes up to $25 and 3GBs goes up to $35 a month.
Total so far: $921
Public transportation
Since this individual lives in NYC, it’s likely they don’t have a car. Which is probably for the best, because driving in the city sucks and parking costs are astronomical.
So they wouldeither take the bus or ride the subway, with a 30-day unlimited pass for $121.
Total so far: $1,042
Food
If you avoid going out frequently (which, yes, I know if highly unlikely for the 20-something individual I’m using as an example), you can eat fairly cheaply.
I know people who live off of $35 worth of food a week ($140 a month). It’s not the most comfortable thing to do, and you wouldn’t beeating much besides pasta, chicken, and some frozen vegetables, but it’ll keep you fed and relatively healthy.
Food costs can vary depending on where you shop—so this individual would have to stick to larger grocery stores. AvoidingWhole Foodswould also be a must.
Total so far: $1,182
Student loan
For this example, let’s assume this individual doesn’t have a student loan. This is highly unlikely if this person went to college, but let’s make this imaginary person’slife a little easier by granting them the luxury of no college debt.
All other factors
So far, the total cost of living in New York City with a bunch of roommates, no car, and a very low food bill is just $1,182. That’s pretty cheap. But, since life isn’t that simple, there are a lot of other factors to consider as well.
They include clothing, health bills not covered by insurance, a couple nights out on the town (because realistically you’re not going to stay holed-up in your apartment all the time), and a handful of other situations it would take too long to mention.
Example #2: Young, healthy, 20-something individual living outside a city in Holyoke, MA
Since not all people enjoy living in the city (or can afford it), let’s take a look at what living outside of a major city would cost the same 20-something, single, healthy person.
I’m using Holyoke, Massachusetts, because it’s right outside of cities like Springfield and Chicopee, and is a short distance from five colleges.
Apartment
Since apartments are cheaper in more rural areas, I’ll do an example of a person who lives with a roommate, versus the cost of a one-bedroom apartment.
According to the online real estate databases I mentioned earlier, a two-bedroom apartment in Holyokeranges between $1,000 and $1,300. So a person would likely not pay more than $650 a month with a roommate.
Total so far: $650
Phone service
Holyoke is still considered a city, but I went to college in the area and can tell you, that’s pushing it. That being said, there aren’t as many phone service options.
Verizon’s most basic plan, is the best option. For anunlimited plan, it’d cost$75 a month.
Total so far: $725
Public transportation
The great thing about having so many colleges near Holyoke is that this means there’s excellent public transportation, which is unusual for such a rural area.
A PVTA (Pioneer Valley Transit Authority) monthly pass is $45, with unlimited rides during running hours (the last bus is usually around midnight, depending on the time of year).
$45 a month is cheaper than car maintenance, a potential car loan, and gas. These bus rides can be long though since they make so many stops.
Total so far: $770
Internet or no internet
There is a plethora of libraries around that offer internet, as well as many coffee shops with internet access, but on the outskirts of Holyoke, internet wouldn’t be a bad idea.
Verizon internet offers a$40 planfor 100mbps.
Total so far: $810
Food
Using our super frugal food bill from the example above, you could spend as little as $140 a month.
Total so far: $950
Student loans
Since a large portion of people that live in Holyoke or nearby were (or are) college students, I’m going to factor in the cost of a student loan.
The average student loan debt for 2017 is about $37,000. Using this amount, and 5% interest rate, there’s a couple of different options for monthly payments:
- Standard (make the same payment) 10-year repayment: $392 a month
- Graduated (payments increase every two years) 10-year repayment: $222-$666 a month
- Standard 25-year repayment: $216 a month
- Graduated 25-year repayment: $154-$352 a month
- Pay As You Earn 20-year repayment: $99-$393 a month
Since this is about living in the cheapest way possible, let’s use thePay As You Earn 20-year plan, that’s another $99 a month.
Total so far: $1049
Example #3: An average, somewhat frugal, young person living in Chicago
Taking a look at how an actual young person lives, let’s see what the cheapest you can live on including “necessities” like basic internet and a decent phone plan.
Apartment
Chicago is way less expensive than New York City. A person living in an apartment with a roommate (again according to my findings on, Zillow, apartments.com, and Trulia) could pay as little as $700-$800 without utilities. So each person would be paying (averaging in utilities) about $600 a month (and that’s rounding up).
Total so far: $600
Transportation
Like most cities, there’s not much of a reason to have a car, unless you enjoy traffic jams and pedestrians constantly darting out in front of you.
A CTA (Chicago Transit Authority) bus and train pass is $100 a month.
Total so far: $700
Basic internet
An average twenty-something is going to have internet. Binge-watching Netflix shows isn’t as socially acceptable in coffee shops as it is from your own apartment.
RCN of Chicago offers basic internet (155 mbps, which is a really good deal) for just $44.99 a month (not including equipment). The one thing to note—their customer service rating is pretty bad, but that seems to be a theme with internet providers.
Total so far: $745
Phone
Like NYC, in Chicago, there’s access to nearly every kind of pay-as-you-go cell phone service.
Again, TPO Mobile offers a 1GB, unlimited talk & text plan for just $21 a month (with auto-pay). The 2GB plan goes up to $25 and 3GBs goes up to $35 a month.
Total so far: $766
Food & dining
Let’s be honest, any 20-something is going to go out at least once a week. Whether that’s to a bar or ordering takeout.
As a 20-something myself, I can probably say a really frugal eating out budget is $100 (it’s probably more like $150-$200), depending on where you live.
If you’re in an expensive city, drinks and food will cost more. If you’re in a rural area, maybe there’s only one or two bars that serve the same $2-$3 Bud Light, but you’ll make up for that cost in Uber fares.
Total so far: $866
Student loan
Using the student loan info from above, you could get away with paying $99 a month, with the lowest possible payment.
Total so far: $965
Wrappingeverything up
Theoretically, a very frugal person, who doesn’t go out a whole lot and can settle for basic everything, could live (in Chicago, at least) for under $1,000. That also assumes you don’t have any health issues, a car, and you don’t buy any new clothes for a while.
As an enthusiast well-versed in frugal living strategies, I bring a depth of knowledge on the concepts of minimalism, frugality, and financial efficiency. My expertise spans various strategies that encompass living on a tight budget, reducing unnecessary expenses, and optimizing financial resources for a fulfilling lifestyle. My knowledge is rooted in extensive research, practical application, and an understanding of economic principles to achieve sustainable and cost-effective living.
The article presented delves into three distinct scenarios illustrating frugal living for young, healthy individuals in different locations—New York City, Holyoke (outside a city in Massachusetts), and Chicago. Each scenario explores the costs associated with various essentials like housing, utilities, transportation, communication, food, and student loans. Let's break down the concepts used in these examples:
-
Housing and Utilities: The cost of living heavily depends on the location. In urban areas like NYC, sharing apartments with roommates is a common strategy to minimize rent expenses. In contrast, residing outside major cities, especially in less urbanized areas, offers cheaper accommodation options, such as sharing a two-bedroom apartment.
-
Communication Expenses: Phone plans, especially pay-as-you-go options, are chosen as they provide essential communication at relatively lower costs. The article highlights various plans available in different locations, considering the affordability factor.
-
Transportation Costs: In city living, reliance on public transportation tends to be more cost-effective than owning a car due to parking costs and traffic congestion. Monthly passes or bus/train services are key components of the frugal lifestyle.
-
Internet Access: Basic internet services are often included as a necessity, whether through home internet connections or relying on public Wi-Fi offered by libraries or coffee shops.
-
Food and Dining: Frugal food budgets focus on grocery shopping and cooking at home, minimizing expenses related to dining out or ordering takeout.
-
Student Loans: Addressing the significant financial burden of student loans, the article includes calculations and options for repayments, integrating these costs into the overall living expenses.
-
Additional Considerations: The examples acknowledge other potential costs such as health expenses, occasional social outings, clothing needs, and unforeseen expenses, emphasizing the challenge of achieving ultra-frugal living.
Each example emphasizes the adaptability of frugal living strategies based on the geographical context and individual circ*mstances. The scenarios underscore the trade-offs individuals might make to minimize costs, highlighting that achieving an extremely low-cost lifestyle involves sacrifices in various aspects of personal comfort and leisure activities.
