How to Live on Practically Nothing

Co-authored by Samantha Gorelick, CFP®

Last Updated: August 13, 2021 References Approved

Living on practically nothing is achievable and, depending on the attitude with which you approach it, living without much can be a liberating rather than a depriving experience. For those who are forced to downsize severely, for those who travel often for work or life, and for those who just want less to be more, no matter how much they already have, this article will show you ways in which you can achieve a comfortable lifestyle with practically nothing.

Part 1

Part 1 of 4:

Getting Into the Right Mindset

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Embrace your situation. Living on practically nothing successfully involves having the right mindset – resent doing it, and you'll end up blowing what little cash you do have on treats to cheer yourself up for "missing out on so much". Embrace it, and you'll be doing what many millionaires have known for decades – economizing as a way of living happily, fruitfully, and without shame. Living well below your financial means, investing smartly (such as buying reliable items rather than flashy, expensive things), and staying financially independent (rather than showing off the wealth you do have) is the way to remain grounded and secure throughout your life.
- See living on practically nothing as an opportunity, or even an adventure. Even if you don't end up liking it, the chances are that you can use this time to accumulate wealth that can see you living more easily in the future.
- Cultivate simplicity as a way of being. Read How to simplify your life for more ideas.
2
Make the best of your situation. Whatever your age and reason for downshifting, treat it as an opportunity to create balance in your life. This can be a time to reconnect with people who you haven't been able to spend enough time with like family and friends. This can include spending more time with organizations that you may have strayed from like your church or a local charity.
- Take responsibility for your downshifting. Even if the situation is thrust upon you rather than being by choice, it'll be far easier on you and those around you if you pursue your downshifting without complaining and actively look for ways to improve your living circumstances rather than waiting to be "bailed out".^{[1]
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- Being suddenly forced to change certain aspects of your life can also provide a great opportunity for a fresh start in other areas. For example, you could finally take more steps to be healthier or make a point of volunteering more often.
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3
Follow a budget and be frugal. If you're already following a budget, check that it's working for you. If it isn't, it may be time to create some spending rules for yourself. You'll want to start thinking about each purchase, no matter how small, as it fits into your monthly budget. One of the easiest ways to do this is to use a budgeting app like Mint or Level Money. These apps track your spending for you and allow you to see exactly where your money is going and where you can make cuts.^{[2]
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- Set aside the sense that a budget is a confining way to live. Following a budget is actually a very liberating way to live – it provides parameters, it helps to keep you in check when you feel reckless, and it can even help you to rein in bad habits such as spending to soothe yourself, buying take out instead of cooking a healthy meal, or letting someone else weed your veggie patch when the workout would do you good (and save you gym fees).
4
Find ways to make more money or to trade your skills. If you don't have or don't want to have a job, be on the lookout for ways in which you can raise more cash by working for yourself. Or, trade your skills with others whose skills you need, bartering your way to get what you need rather than spending actual cash.
- Grow vegetables and sell them at the local farmer's market.
- Make soap, cosmetics, jewelry, etc., and sell these at a local craft market.
- Offer your pruning, mowing, tutoring, cleaning, car-washing services to locals at decent prices.
- Look for items in thrift stores that you can flip online. Some people are so good at doing this that they make a living out of selling secondhand goods online.

Part 2

Part 2 of 4:

Lowering Your Cost of Living

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Reduce your utilities bills. Lowering your electric and gas bills doesn't mean living in a dark and cold house. By making a few changes, you can still live comfortably while reducing your power and heat consumption and saving money on your bills. For example, try setting your thermostat as low as is comfortable in the colder months and wearing more clothing indoors to save money on heating costs.
- Never leave the thermostat on at all unless you are home. In addition, never leave energy-guzzling electronics like televisions plugged in when not in use.^{[3]
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- In some cases, more drastic steps like investing in better windows and insulation for your home can save you a good amount of money each month.
2
Reduce your water bill. You can lower your water bill by simply changing a few of your habits. For example, try only running dishwasher and washing machine when they are absolutely full. You can also practice taking "navy showers," where you only run the water to wet yourself and rinse, leaving the water off while you soap up and cleanse.
- You should also thoroughly inspect all of the pipes and fixtures in your house for leaks, no matter how small. Even a tiny leak can add up to a lot of lost water, and increased cost, over months or years.
- Additionally, you can invest in low-flow toilets and showers to save even more on water bills in the long run.^{[4]
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3
Lower your healthcare expenses. Healthcare is another one of those costs that can seriously eat up your budget. By making a few simple changes, though, you can drastically cut your healthcare expenses while still maintaining your health. For example, consider:
- Switch to generic versions of drugs you are taking.
- Ask your doctor for a discount on visits or procedures. Seriously, 61 percent of people got one when they asked in a recent study.^{[5]
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- Listen to your doctor not just on medication advice but also health living advice.
- Shop around for drug prices at different pharmacies.
- If you are healthy and visit the doctor rarely, consider switching your health insurance to a high-deductible plan. This will cost more when you visit the doctor, but monthly premiums will be much lower.
- Exercise and eat well. The number one thing you can do to avoid healthcare costs is to keep yourself healthy.^{[6]
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4
Eat seasonally. Cutting food expenses doesn't require you to sacrifice your health. Eating Seasonal food will always be cheaper than food flown or shipped in from elsewhere because there is more of it available and it doesn't incur such high transportation costs. As an added bonus, it's also fresher.^{[7]
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- Visit farmer's markets and supermarkets nearer closing time. You'll be able to find more bargains and even throwaway items when the sellers need to move their produce on. See how to save money at a farmers' market for more information.
- In supermarkets, check out the bakery, meat, and fruit and vegetable areas for nightly bargains. Many fresh pre-packaged products such as salads-to-go will be cheaper in the nights to make way for the next day's fresh produce.
- Grow your own if you have a permanent place for at least a season. Even using a community garden can be a great way to get fresh, cheap food and to meet new friends.
5
Don't shop for groceries every week. Instead, only go shopping when your groceries have run right down to bare minimum. Replenish perishables such as milk and bread as needed but try to cope by eating down everything already in your cupboard, fridge, and home.
- Another way to do this is to not go shopping one week a month. During that week, you have to live off whatever is in your kitchen. Many people find this is a very creative time.
- Use coupons and discounts to reduce food costs. Start with the weekly sales flyer and spend some time working out the cheapest ways to eat.
- Drink tap water. Water is the healthiest drink and the cheapest. Put a filter on your tap if you're worried about contaminants; it's a health investment even on a frugal budget.
6
Find a cheaper home. It is possible to live somewhere that isn't an encumbrance on your life and that is either low cost, free, or in some cases even comes with a small stipend. If you choose to live in your own home (either rented or mortgaged), choose a home of modest means over a large home. There is less to maintain, less to clean, and less space to fill up with stuff.
- Consider moving to a cheaper area. Find out if there are cheaper parts of town you could move to or cheaper living arrangements that you could make while still staying close to your job. If that doesn't work for you, and if you are not bound to a certain area for work, consider moving out of the city (if you live in one) or to a state or province with a lower cost of living. You can find ideas of cheaper areas to live by searching Google for "cheap areas to live."
- In some places, you can apply for affordable or middle-income housing.^{[8]
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  Samantha Gorelick, CFP®
  Financial Planner
  Expert Interview. 6 May 2020.}

Part 3

Part 3 of 4:

Lowering Discretionary Spending

1
Sort your stuff. If you've got too much stuff already, do a declutter. Simply remove as much as possible from your life, including excess clothing, furniture, electronics, and other possessions that aren't critical to your life. If you're forced to downsize due to a job loss or because you're moving, try to see this as a great opportunity to rid yourself of anything weighs you down. If you don't have any stuff, then you're ready to skip this step and move to the next one.
- See what you can sell rather than throwing it away. If you don't have the time or fortitude to sell it online, try an auction house. An easier way to sell online than listing individual items is to bulk sell – while you'll get less than if you took the time to sell items individually, you will at least recoup a decent amount for your unwanted possessions.
- Take all items you no longer want to your local item collection charity.
2
Reduce your cell phone bill. Consider, for example, cutting some services or changing carriers. You'd be amazed at what you can live without once you don't have it anymore.^{[9]
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Research source} Contact other available carriers in your area for a cell phone quote and select the cheapest one (if it is less than your current plan).
- This may include choosing a cheaper data plan and lowering data usage by turning off automatic app updates and other services.
- If you need to, consider downgrading your phone if you are finding it difficult to keep up with payments on a top-of-the-line smartphone.
3
Downgrade your cable package or cut it off entirely. In many cases, people are paying for channels or services that they don't use. Save money by switching back to a basic package or cutting cable entirely in favor of online streaming services like Netflix.
- If you want to make the change but fear you'll miss big programs like sporting events, consider watching these events at friends' houses or restaurants instead. You'll save money and get to enjoy the company of your friends at the same time.^{[10]
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4
Give up your car. If you live in a city, there is plenty of public transportation available to get you to your destination and it's cheaper to take the occasional taxi for emergencies than it is to own and maintain a car. Try walking and cycling as much as possible (you'll keep fit) and get all the timetables for your local train, bus, subway, or ferries so that you know when to catch your ride.
- If you live in a more rural area, consider either decreasing the number of cars you have in a household and sharing them or carpooling with coworkers and neighbors to save money.
- If you do keep your car, try adjusting your car insurance to at least a $1,000 deductible. In a lot of cases car repairs actually cost less than $500, so you'll probably pay out of pocket instead of using insurance. That adjustment will help reduce your monthly premiums.^{[11]
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  Expert Source
  
  Samantha Gorelick, CFP®
  Financial Planner
  Expert Interview. 6 May 2020.}
5
Keep yourself well-clothed on the cheap. Thrift stores are great resources for affordable, quality clothes.^{[12]
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Expert Source

Samantha Gorelick, CFP®
Financial Planner
Expert Interview. 6 May 2020.} Long gone are the days when visiting a thrift store was looked down on; now it's considered hip and with a bit of savvy sorting, you can find yourself some great threads for little cost.
- Also try reducing your wardrobe to an absolute minimum. Keep only the clothes that you wear on a regular basis and the ones that you need most.
- If some of your clothes go out of style, try mixing and matching them with other garments from your wardrobe instead of throwing them out.^{[13]
  X
  Expert Source
  
  Samantha Gorelick, CFP®
  Financial Planner
  Expert Interview. 6 May 2020.}
6
Look for free and low cost entertainment. There are so many possibilities that even working out what to do is an exercise in itself. Consider activities offered in your community for free, like free concerts, walking in the city or on local trails, riding your bike, visiting the museum or library, or local train trips to parts of the city you've never visited. Also think about:
- Playing sports such as running, swimming, and tennis in local parks. You can usually find gear in the thrift store.
- Beautifying your community by helping out in a community garden or making recycled crafts out of trash or scrap.
- Turning ordinary events like grocery shopping into entertaining ones by involving family.

Part 4

Part 4 of 4:

Traveling on Practically Nothing

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Consider travel-based work opportunities. There are many options for free or cheap travel through doing a specific job. However, most come with significant responsibilities. There are numerous online resources for finding these types of jobs. Try searching for a job title or description and a location and see what comes up. Some of the opportunities to consider include:
- Moving yachts around the world for absentee owners or working as part of a crew for active yachts
- Delivering packages by hand as a courier on international flights
- Traveling as part of the crew on container ships (hard work!)
- Being a tourist guide (hiking trails, tours of historic buildings or ruins, etc.)
- Driving vehicles from one location to another location
- Teaching your language in another country
2
Try couch surfing. This generally involves only a simple online signup before you're on your way. Organizations like CouchSurfing, Servas International, Global Freeloaders, and Hospitality Club allow you to stay with strangers for free or in return for some simple labor.^{[14]
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Research source}These services are operated through an online network and operate all over the world.
- Be sure to follow all the safety protocols in place and look for people who have a lot of good referrals, to be on the safe side. While the idea is to meet friends you've not yet met, always be cautious when meeting with strangers.
- Home swapping can be another good choice if you own or rent on a permanent basis. There are plenty of opportunities available online; just be sure to do all necessary checks to ensure you're not inviting a house destroyer into your home!
3
Look for house-sitting opportunities. Check out http://www.caretaker.org to browse available opportunities. These vary from seasonal (beach houses, ski cabins, or homes where the residents are going away for a few weeks, months, or even years and need the house cared for), to permanent positions where you are essentially a "caretaker" of such places as hostels, retirement homes, lighthouses, organic farms, ranches, motels, or campgrounds, among others.^{[17]
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- If you're looking for a comfortable and fairly extended length of stay in a place, and obviously if you want to be a caretaker, you'll need an established track record, possibly training in hospitality, and good references. But do persevere as this can be an incredibly good way to live cheaply.
- If you get a role as a caretaker, expect to do such tasks as taking tourists around, caring for animals and gardens, property maintenance, ensuring security measures are in place, cleaning pools, etc. Note that this is one role where "reverse age discrimination" is rife, as property owners want mature and reliable people over a certain age.
4
Consider leaving home. Get out and see the world. Whatever your age, you can help others in your own country or overseas. If you're willing to volunteer organizations in such areas as health, reconstruction, conservation, sanitation, providing food and shelter, etc., you'll find a steady stream of free accommodation and food in return for your volunteering.
- In most cases it's not likely that you'll get paid much, if anything at all, but the reward of free shelter, food, and doing good for humanity can be worth far more than a wage. If you have children, this option is harder to accommodate but some families still give it a go by checking out in advance that there is good schooling and decent living standards available; an experience like this can shape kids dramatically for the better, so don't dismiss it outright.
- One other, fairly drastic, change is to move to a country where your savings go a really long way. Search online for expatriate resources for global relocation; there are enough people doing this to warrant a small industry catering to them!
5
Stand at the edge of the world, leap into your dreams and plunge freely into your new living-on-practically-nothing life. Just remember, living on practically nothing requires effort, as with most good things in life, so don't equate it with doing nothing!

Warnings

Working for free and living freely doesn't come with health insurance most of the time. Keep your health needs in mind; stay healthy by eating well and exercising frequently but don't put all of your eggs in one basket; make sure that you also have health care options sorted if something goes wrong.

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Do not starve yourself. Even when you are minimizing the number of times you shop for groceries, if there is something you absolutely need, like medicine or a beverage, go out and buy it.

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Be careful about being taken advantage of when seeking to do things for free or next-to-nothing in return for free accommodation and food. For example, caretakers have reported being treated as servants expected to do everything rather than to do a reasonable amount of work in return for the free lifestyle. Be careful and be prepared to leave if the situation you're in is disadvantaging you; there are plenty other good opportunities available.

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