My husband and I are paying off $117,000 of student loan debt in just three years – on entry-level salaries. This goal is nearly impossible, and it requires an extreme approach to frugality. As Dave Ramsey says, “When you find yourself in a radical mess, you need to make a radical change.”
While some of my money saving methods may seem crazy to others, it will be well worth it when our debt is paid off in just three short years. Here are three ways to be a frugal weirdo and save over $2,000 per year.
Limiting haircuts to once per year
The last time my hair looked amazing was at my wedding. It was a rich, shiny “cherry coke” color (that was dyed by a talented and very expensive professional) and it was the perfect length – not too long and not too short. My hair has always been the one thing I love to splurge on.
When I decided to pay off my student loans in three years, I chose to stop dyeing my hair altogether (not even with boxed dye) and to limit my haircuts to once per year. I’ve never been a fan of my natural hair color – it’s a dark ash blonde that resembles the color of dishwater. I now grow my hair out until it’s fairly long, and then I get it cut super short, and then I let it grow out again – this allows me to get my hair cut only once per year without having ridiculously long hair. When I do get my hair cut, I go to a cheap salon instead of the super expensive one I used to go to. I may not like the way my hair looks, but paying off my debt is way more important than having nice hair.
Skipping dental insurance
Health insurance is a necessity – I would never recommend to ANYONE that they go without health insurance. Even a young, healthy person could get in a serious car accident or break a leg. This could cost tens of thousands of dollars. Going without health insurance isn’t worth the risk.
Dental insurance, on the other hand, is a different story. Going without dental insurance carries much less risk. If you have great teeth and you haven’t had a cavity in many years, you may not need to go the dentist at all for a year or two. And let’s say you decide to get your teeth cleaned even though you don’t have dental insurance – this typically costs $100. The cleaning itself would cost less if you have insurance, but the total cost to you would be higher with insurance. The premiums on my prior dental plan, and on many private insurance plans, are $30/month (which is $360/year).
You are not saving money with dental insurance if you only get one cleaning per year! (You paid $360 for premiums plus a copay instead of paying only $100 for a cleaning).
(Obviously, if you are able to get dental insurance through your employer with premiums of $5/month, then enrolling in dental insurance is a good idea).
Now, let’s say you go to the dentist and it turns out you have a cavity and you need a filling. A typical filling can cost anywhere from $75-$250. If you get the most expensive type of filling and you had to pay for one cleaning, that’s a total of $350 – still less than you would’ve paid for insurance premiums for the year.
This goes without saying, but if you decide to ditch your dental insurance, be diligent about brushing your teeth 2-3 times per day, limiting your sugar intake, and flossing daily.
Complete spending ban on outings with friends
Many people try to find cheap things to do with friends, but a complete spending ban on outings with friends seems to be rare. A lot of people think I’m crazy when I mention my spending ban, and when I first told my friends about my plan, they still kept inviting me to things that involved spending money.
The problem is that we live in a society that teaches us that having fun requires spending money. Typical outings with friends include going out to dinner, going to movies, bar hopping – all things that aren’t cheap. There are a surprising number of things that can be done for free – you just need to be willing to spend the time looking for them. Here are just some of the free things I’ve done with friends since I started my crazy debt payoff journey.
- Outdoor yoga
- Indoor yoga at a yoga studio (the first seven days at the studio are free)
- Relaxing in a hot tub at a friend’s parents’ house
- Movie/Netflix nights
- Board game nights
- Going for a walk at a park
- Having a photo shoot
- Visiting a free art museum
- Participating in a scavenger hunt (my friend won a free gift basket)
- Watching an acrobatics show at a local park
- Having dinner at a friend’s house
- Walking around antique stores without buying anything
- Visiting a free zoo
Limiting haircuts, skipping dental insurance, and implementing a total spending ban on outings with friends may seem like crazy ideas, but these things are allowing me to pay off mountains of debt in just three years and that is what truly matters.
Have coffee with friends at each other’s houses and then go Thrift shopping together, car pooling. Forage fruit in season with friends, make jam and give it as Christmas presents, but be sure to buy the jars in the Thrift shop.
Have a clothing exchange and potluck …. as much fun as eating out and you can afford better wine.
Prune your trees and use the branches cut for floral, leaf arrangements. Exchange your magazines and books with friends with tea or coffee….or wine.
Great ideas!
If you have cats or dogs I have found it very inexpensive in the short-term and long-term to buy human grade food. The cats eat chicken. And it’s healthier for them to eat raw chicken Google search it.
I buy chicken breast and I feed the Raw to the cat and cook it for the dog and myself. It has no preservatives or cornmeal or by-products. Which every science expert says is main cause for Health Care problems in our pets.
I buy turkey, chicken, and tilapia fish. The most all three are between $3 to $7 per pound. 5 lb a week covers the humans and the pets in our family. Compared to a dollar fifty for one can of cat food. And in California all pet food is taxed at 9.15 cents per dollar.
And for free stuff to do around town-meetup.com. free concerts that the organizer sets up every week. Free things to do for the month. Free dance classes. A variety of great things to do and all for free.
Interesting! Thanks for sharing!
Also, I love your free hang out ideas! If you or anyone you know have a projector, it’s also fun to hang up a sheet in the backyard and play a movie. I love doing that in the Spring and Summertime. :) Feels like you’re at the drive-in but it costs less and you’re near the kitchen so you can make some fun snacks.
I love that idea!
I think dental can also add up and affect your overall health if it isn’t taken care of, which could significantly increase costs. I use 1Dental’s discount dental plan. It only costs $179/year for me and my whole family (3 of us, but this cost covers more than 3). It saves us so much on our dental work! My husband had to get a root canal a couple of weeks ago unexpectedly. It cost us $1,000 for the root canal and crown. If we hadn’t had our plan, it probably would have cost us double that, if not more.
Well worth the investment and something to look into if you’re on a budget. A great way to make sure you’re covered, reduce the cost of cleanings and x-rays throughout the year and any unexpected treatment that might come up while also staying on a budget. We’ve been trying to pay off our student loans, too! We’re almost there! This has been a big saver for us over paying for dental insurance every month.
Interesting! Thanks for the info!
Great blog! My one comment would be to NEVER skip on any sort of health insurance, including dental! It’s not just there for your once a year cleanings, it’s insurance against accidents. I’ve known more than one person who has gotten into extremely severe car accidents, and have had their entire faces smashed, including their teeth. That falls under dental insurance!! If they didn’t have insurance, I can’t even imagine the tens of thousands of dollars they’d have spent in dental surgery.
Just a thought :) Insurance may save you a ton of money in case of emergency!!
Thank you! I do see your point. However, I know a lot of people who have had to have extensive dental work done, and they still end up paying several thousands of dollars for it (even with insurance). It frustrates me that the benefits with dental insurance are so limited.
Ugh I just started dyeing my hair again in the Fall and it’s so fun but I know I shouldn’t be doing it if I’m trying to save money!! :) Kudos to you for taking the leap back to your original color.
Thank you! It’s one of the biggest sacrifices I’ve made in the name of debt repayment. It seems silly to my husband, but I used to love splurging on fancy haircuts/colors.
Agreed on the dental insurance! Even when I do go to the dentist, they basically clean my teeth, look at them, and tell me they’re fine. Plus, if you DO get something that’s truly damaging to your teeth (like they get smashed in an accident or something), repairs are covered by health insurance. In my case, my dental insurance is provided by my employer without any cost to me, though, so I’m more than happy to do my twice a year cleanings. :)
Exactly! Thanks for your comment!
After we found out I was pregnant with #3 we found daycare for #2 & #3 would cost us $5,000 more a year than I made. I quit working a little over 5 years ago to save us money on daycare. It’s saved us a little over $100,000 over 5 years.
Wow! It’s crazy how expensive daycare is!