Frugal Living Expert Separates Money Myths From Reality: Which Habits Actually Work?

The frugal movement dominates social media, but not all money-saving strategies are created equal. Financial expert Rachel Cruze recently examined viral frugal tips from popular TikTok creators to determine which ones actually deliver results and which ones miss the mark. Her analysis reveals surprising gaps between what influencers recommend and what truly works for building wealth.

The Maximizing Mindset: Making Every Dollar Count

One principle Rachel Cruze consistently endorses is the art of stretching your purchases to their limit. The Frugal Millionaire Mom, known on TikTok as @heyfrienditsem, has built a net worth exceeding $2 million by practicing deliberate reuse. Her approach includes saving gift bags across multiple occasions, repairing items instead of replacing them, and using entire packages before purchasing new ones.

Cruze recognizes the wisdom here but draws her own boundaries. While she’ll reuse birthday bags season after season, she draws the line at hoarding tissue paper. Her takeaway? Strategic reuse beats mindless accumulation. The key difference is intentionality—deciding what to save based on genuine utility rather than following arbitrary rules.

This philosophy extends beyond just physical items. It’s about developing a mindset where you question whether a purchase truly serves your life or simply fills your cart.

Smart Shopping: The Grocery List Advantage

Food spending has become increasingly painful for American households. The U.S. Department of Agriculture documented a staggering 23.6% increase in food prices between 2020 and 2024, with another 1.2% jump from 2023 to 2024 alone. Against this backdrop, the humble grocery list transforms into a powerful financial defense.

Another TikTok minimalist, @brookie_budgets, champions eating what’s already in your fridge before restocking. Combined with a structured shopping list, this strategy eliminates impulse purchases that derail budgets. Cruze enthusiastically backs this approach, noting that “it’s so easy to go over budget with groceries” without a framework in place.

The frugal living strategy works because it forces a pause between desire and purchase. You’re no longer browsing the store; you’re executing a plan.

Debt-Free Transportation: The Most Underrated Wealth Builder

Perhaps Cruze’s strongest conviction comes when discussing vehicle ownership. TikToker Kat Hughes (@kathughess), a frugal mother of three, advocates for driving an older paid-off car rather than financing a new one. This recommendation aligns perfectly with Cruze’s core financial philosophy: eliminate debt payments to accelerate wealth building.

The numbers support this stance dramatically. According to Edmunds, 1 in 5 new-car buyers now commit to monthly payments of $1,000 or more—up two percentage points quarter-over-quarter. For many households, this represents their second-largest monthly expense after rent or mortgage. By owning your vehicle outright, you redirect hundreds of dollars monthly into actual wealth-building vehicles like savings or investments.

The real frugal win isn’t buying a cheaper car—it’s buying it without debt.

Where Extreme Minimalism Loses: The Minimalist Wardrobe Trap

But Cruze pushes back against one popular frugal trend: extreme minimalism in clothing and accessories. Some creators proudly display wardrobes of just two pairs of jeans and a handful of jewelry pieces. While respectable, Cruze refuses to adopt this approach.

Her reasoning cuts to the heart of sustainable money management: your budget should bring you joy, not steal it. If minimizing your wardrobe to two pairs of jeans creates daily frustration rather than relief, the “frugal” habit becomes a wealth-killer because it forces you into an unsustainable lifestyle.

Cruze’s philosophy is refreshingly honest: frugal living only works if it’s sustainable. The goal isn’t deprivation—it’s deliberate spending that aligns with your values. When you own your financial choices rather than following rules, your money finally works for you instead of against you.

The real lesson? Separate the frugal habits that build wealth from the restrictive ones that build resentment.