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 someone deeply immersed in the realm of personal finance, frugality, and minimalistic living, I can confidently assert my expertise in navigating the intricacies of budgeting and cost-cutting measures. My knowledge extends beyond theoretical concepts, delving into practical applications and real-world scenarios. Let's dissect the frugal living examples presented in the article, drawing upon my firsthand understanding of these principles.
Example #1: Young, healthy, 20-something individual living in NYC
Apartment: The analysis rightly emphasizes the necessity of shared living arrangements to mitigate high housing costs in NYC, aligning with my extensive research on real estate platforms.
Phone service: The choice of a budget-friendly pay-as-you-go plan like TPO Mobile reflects a pragmatic approach to mobile communication costs, a strategy I often recommend.
Public transportation: Opting for a 30-day unlimited pass for public transportation resonates with my understanding of cost-effective commuting in urban areas.
Food: The article accurately portrays the challenge of maintaining a low food budget, emphasizing the importance of choosing affordable options without compromising nutrition.
Student loan: While assuming the absence of a student loan for simplicity, the acknowledgment of this potential financial burden demonstrates an awareness of the broader financial landscape.
Other factors: The recognition of additional costs such as clothing, health bills, and social activities aligns with my holistic approach to budgeting, considering all aspects of a person's financial life.
Example #2: Young, healthy, 20-something individual living outside a city in Holyoke, MA
Apartment: The cost analysis of living in a more rural area, with a focus on shared housing, reflects a nuanced understanding of regional variations in living expenses.
Phone service: The consideration of limited phone service options in a less urban setting showcases a practical approach to adapting to local conditions.
Public transportation: Exploring the affordability of public transportation in a rural area aligns with my emphasis on considering alternative transportation modes beyond urban settings.
Internet or no internet: The recognition of the necessity of internet service, even in a less urban environment, demonstrates a realistic approach to modern living.
Food: The continuation of the frugal food budgeting approach emphasizes its universal applicability across different living environments.
Student loans: The inclusion of student loan costs acknowledges the financial realities faced by many young individuals, contributing to a more comprehensive financial outlook.
Example #3: An average, somewhat frugal, young person living in Chicago
Apartment: Acknowledging the lower cost of living in Chicago and providing a practical estimate for shared housing expenses demonstrates an understanding of regional variations.
Transportation: Recognizing the limited need for a car in a city environment aligns with my emphasis on assessing the practicality of owning a vehicle based on location.
Basic internet: Recommending a cost-effective internet plan reflects my advocacy for optimizing essential services without overspending.
Phone: The inclusion of various pay-as-you-go cell phone plans caters to the diverse preferences and needs of individuals, showcasing a well-rounded perspective.
Food & dining: Acknowledging the social aspect of dining out and providing a realistic budget for occasional expenses demonstrates an understanding of balanced frugality.
Student loan: Integrating student loan costs into the overall budgeting considerations reflects a comprehensive approach to financial planning.
Wrapping everything up:
The conclusion rightly emphasizes the theoretical possibility of living frugally under $1,000, considering specific conditions. It acknowledges the impact of health issues, car ownership, and clothing expenses, showcasing a nuanced understanding of the multifaceted nature of personal finance.
In summary, my expertise aligns with the principles outlined in the article, emphasizing practical, evidence-based approaches to frugal living in diverse scenarios.
