A Reddit user recently shared how they cut over $12,000 in annual expenses after being laid off—without sacrificing quality of life. Their post in r/Frugal, which quickly went viral, detailed every step of their cost-cutting journey and why more people might need these strategies as the economy tightens.
Prioritizing Family Over a Bigger Paycheck
The original poster was laid off just weeks before their second child was born. After a decade of working more than 55 hours per week, they decided to pursue freelancing instead of returning to the grind of agency life.
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But with income uncertain, OP knew they had to cut costs fast. “I set off reducing my recurring expenses as much as possible,” they wrote. “Given how the economy is moving, many of us may need these tips sooner rather than later.”
Cutting $12,000 in Annual Expenses
The biggest cuts came from subscription services, food costs, and health insurance. OP listed their previous monthly expenses, which totaled $2,127, and detailed how they slashed that to $1,093—saving over $12,000 per year.
Streaming services, memberships, and phone bills were taking up a big part of OP’s budget. To save money, they canceled Netflix, Crunchyroll, and Amazon Prime and started using Stremio with Real-Debrid instead. They also stopped paying for Spotify and used YouTube Music, which comes with YouTube Premium.
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Instead of paying for LastPass Family, they switched to Bitwarden, a free option that does the same thing. They also got rid of their Chase Sapphire Reserve credit card and replaced it with a cashback card that gives them rewards at Costco.
Perhaps most importantly here, they switched from T-Mobile to Mint Mobile, cutting almost $800 a year from their phone bill.
Reducing Shopping and Takeout
OP used to spend $100 per month on Amazon but realized that removing Prime's one-day shipping actually helped curb impulse buys. Now, they only spend about $30 per month, mostly on essentials for their kids.
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Food was another major cut. Instead of buying baked goods, OP learned to bake at home, saving $30 per month. They also learned to cook their favorite takeout meals, reducing spending from $150 to $35 per month. To further cut grocery costs, they started a backyard garden, replacing some store-bought veggies. “We are definitely going much bigger this year (2x what we had previously) with proper equipment, so hopefully we can grow much more as we develop our green thumb,” OP wrote.
Biggest Win: Health Insurance Savings
One of the most surprising savings came from switching health insurance plans. When OP was employed, their family plan cost $1,600 per month. After their income dropped, they qualified for free health insurance. As they said, “With this cheaper health plan, even if my earnings go up significantly and I pay full price for the insurance, it’ll only come out to $950/month”.
That change alone saved $7,800 per year, making it the single biggest financial win.
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Reddit Reacts: More Ways to Save
The post sparked more than 600 comments, with Redditors sharing additional frugal hacks. For instance, using local libraries for free streaming services like Hoopla and Kanopy, utilizing Buy Nothing groups for free baby supplies and household items, using ad blockers and browser extensions instead of paying for ad-free streaming, switching to eBay or thrift stores for cheaper purchases instead of Amazon, and taking advantage of grocery store apps for fast food discounts.
Many came to the realization that lifestyle creep is real and that when you cut back, you realize how little you actually need.
Why These Tips Matter More Than Ever
OP's story resonated because it highlights how quickly financial stability can change. Whether due to layoffs, inflation, or shifting priorities, having a plan to cut expenses can make a huge difference.
And as OP pointed out, frugality doesn't have to mean sacrifice. “I feel pride in my work, and baking something my family loves fills me with oxytocin and dopamine.”
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