Frugal living creator Kate Kaden has become a trusted voice for people trying to maintain their lifestyle while reducing everyday expenses. Instead of focusing on complex budgets or spreadsheets, her latest advice highlights small daily decisions that quietly stop money from slipping away.
Why Living Below Your Means Matters More Than Ever
With inflation, rising rents, and persistent debt squeezing household budgets, traditional advice like cutting back on the occasional coffee no longer feels enough. Kaden encourages a broader shift: building a life that costs less to maintain without feeling deprived.
Living below your means is not about constant sacrifice. It is about creating habits that protect your future self from ongoing financial stress.
Her six strategies focus on three major money drains: food and drinks, utilities, and borrowing. When combined, these habits can free up meaningful cash for savings, debt reduction, or simple peace of mind.
1. Make Water Your Default Drink
Kaden’s first rule is simple: drink water most of the time. While it sounds basic, grocery bills reveal how expensive soft drinks, juices, energy drinks, and flavoured coffees can be. For many households, these items quietly add £10–£30 per week.
She keeps her home drink options limited to water, milk, and tea or coffee. Everything else becomes an occasional treat rather than a routine purchase.
Every skipped bottle of soda is money saved without affecting everyday comfort. For those who dislike tap water, filter jugs or bulk bottled water still cost far less than premium drinks. In areas with deposit-return schemes, returning bottles can even provide a small cash return.
How This Choice Adds Up Over a Year
Replacing regular sugary drinks with filtered water can save hundreds of dollars annually, enough to support an emergency fund, pay down debt, or cover a short getaway.
2. Reduce Water Use Where It Matters Most
Kaden’s second habit is straightforward: avoid wasting water. On metered bills, wasted water directly increases your expenses.
She recommends a few simple routines that are easy to repeat:
- Turn off the tap while brushing teeth or shaving.
- Step into the shower once the water reaches a comfortable temperature.
- Run dishwashers and washing machines only when full.
Some people time their showers, but Kaden avoids methods that feel too restrictive. Her approach reinforces a key principle: frugality that feels miserable rarely lasts. The goal is to remove waste, not punish yourself.
3. Keep Electricity Use Under Control
With energy prices rising across the US and UK, Kaden treats electricity as something that requires active attention. She keeps her monthly power bill under $100 most months by eliminating silent energy drains.
Phantom power—electricity used by devices that appear turned off—acts like an invisible fee on every outlet in your home.
Her routine includes:
- Switching off lights when leaving a room.
- Unplugging chargers and appliances not in daily use.
- Using curtains and fans strategically to reduce heating and cooling needs.
Individually, these steps seem small. Together, they can noticeably reduce monthly energy costs, especially during milder seasons.
4. Bring Food and Water to Avoid Convenience Spending
Kaden follows a simple rule for trips longer than an hour: leave home with snacks and water. This habit dramatically reduces impulse stops at drive-thrus or petrol stations.
A snack and drink purchased on the road can cost $5–$8, while the same items at home may cost less than a dollar. Repeating this twice a week can mean hundreds of dollars a year spent purely for convenience.
The real cost of fast food is not just the meal but the habit of solving hunger with your card instead of your kitchen. A small insulated bag with refillable bottles, fruit, or nuts makes this habit easy to maintain.
Goodbye Hair Dye for Grey Hair: The Conditioner Add-In That Gradually Restores Natural Colour
5. Only Use Credit You Can Repay Fully
When it comes to credit cards, Kaden follows a firm rule: never charge what cannot be paid off in full when the bill arrives.
This prevents balances from growing under high interest rates and forces real-time awareness of a purchase’s true cost.
For those already carrying debt, a gentler starting point includes:
- Avoiding new non-essential credit card purchases.
- Paying more than the minimum whenever possible.
- Using cash or debit for daily spending.
This shift alone can significantly reduce the stress that comes with each new statement.
6. Learn From People Who Are Managing Money Well
Kaden’s final tip is social: ask others how they manage their money when you see them doing well.
Good financial habits are contagious. Conversations with people who have paid off loans or kept food costs low can make smart choices feel normal and achievable.
Whether it’s a colleague or a neighbour, many people are willing to share what works for them when approached with curiosity rather than comparison.
Why These Habits Work Best Together
Each habit is modest on its own, but their combined impact is powerful.
In a typical month, you might:
- Save £15 a week by skipping sugary drinks.
- Reduce water and electricity bills by £25 combined.
- Avoid three fast-food stops and save £30.
That adds up to around £100 a month, or £1,200 a year, without a raise or side income. Used toward high-interest debt, the long-term benefit grows even more by reducing future interest.
Understanding the Idea of Living Below Your Means
The phrase can sound restrictive, but in practice it means creating a gap between income and spending, then using that gap to move forward financially.
Key concepts include:
- Lifestyle creep: spending more as income rises without feeling wealthier.
- Emergency fund: cash reserved for true emergencies to avoid credit reliance.
- Variable expenses: flexible costs like food and fuel where savings are easiest.
How to Start When Money Already Feels Tight
For anyone feeling stretched, Kaden suggests a trial approach. Choose two habits and follow them for 30 days, such as drinking only water at home and skipping paid snacks while out.
Track the exact amount saved and move it directly into savings or debt repayment. Seeing tangible results from simple changes often provides the motivation needed for bigger steps later.
Small, repeatable actions may feel unremarkable at first. Over time, they can quietly shift the balance from constant financial pressure to a sense of control over both your money and your lifestyle.
