The Nuclear Savings Rule: 7 Frugal Living Tips From the 1950s Era
The 1950s were a simpler time and while it looked very different from today, some of the money habits people practiced back then are just as relevant today. But you still can follow frugal living tips from that decade by following the "Nuclear Savings Rule," which draws money saving inspiration from the 1950s.
“Some common activities among many people today are costly and did not exist in the 1950s and 1960s,” said Annette Nellen, certified public accountant (CPA), attorney and tax professor at San Jose State University.
“Cutting these expensive habits or reducing them and putting the money saved in a savings account or your 401(k) will make a big difference now and later in life,” she added.
Here’s a look at some expert recommended frugal living tips from the 1950s.
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1. Make Your Own Coffee
It’s a commonly cited money-saving tip, but it does work. “Make your own coffee! Even in the 1980s, if you bought a cup of coffee, it was plain coffee in a cup. No expensive, fancy, high calorie drinks were available,” Nellen explained.
According to a post on the Subreddit r/AskOldPeople, a cup of coffee was 10 cents back in the day. Adjusted for inflation, that’s still only $1.25. Today, a Starbucks coffee starts at $3.45, according to StarbucksReserveOnly.com. If you spend that five days a week, that would be almost $900 per year on Starbucks coffee.
2. Save for a Rainy Day
“The most powerful 1950s habit is the one that sounds like a cliché: saving for a rainy day,” explained Joe L., founder of Digital Habits Media and RealMoneyHabits.com.
He recommended having an emergency fund with three to six months of savings. “An emergency fund can save the average person or household an average of $5,000 to $15,000 during a difficult event,” he explained.
3. Make Meals at Home
In most cases, eating at home is cheaper than eating out at a restaurant or ordering delivery. “By far, the answer is home cooking and it's not even close,” said David O’Malley, principal, financial advisor and certified financial planner (CFP) at Edward Jones.
Citing 2024 data from the U.S. Bureau of Labor Statistics, O’Malley explained that Americans were spending around $4,000 per year dining out and an additional $2,000 per year on delivery spending on food, service charges and tips.
4. Keep Vehicles Longer
Ashley Morgan, debt and bankruptcy lawyer and owner at Ashley F. Morgan Law, PC in Northern Virginia, said that one thing previous generations did was to continue driving vehicles for years after they were paid off.
“Today, I regularly see people trade in vehicles every few years and roll negative equity from one loan into the next,” she explained.
According to Morgan, the average car payment is over $600 and it’s not too uncommon to see payments over $1,000. “Delaying a new vehicle purchase by even just a few years can result in a difference of thousands of dollars annually in saved loan payments, insurance and depreciation,” she added.
5. Cancel Unused Subscriptions
People in the 1950s didn’t have the same subscriptions we have today, but they did still have some. “In the 1950s and 1960s, likely the only subscriptions were to the local paper which the delivery person collected weekly or monthly and a few magazines," Nellen said. “Television was free and there were not apps or games to pay regular fees to.”
6. Repair What You Own
Repair what you own rather than throwing it away or looking elsewhere for a replacement. “Spending $1,500 per year maintaining a vehicle is often much cheaper than replacing a car since it needs a new engine with a $700 monthly car payment,” Morgan said.
This can also apply to home maintenance. “Routine home maintenance often prevents much larger repairs down the road. Repairing a leaking hot water heater may cost $2,000, but it is cheaper than replacing the hot water heater when the leak gets worse or having to replace the floors because the leak spread,” Morgan added.
7. Quality Over Quantity
Focus on quality over quantity. It’s better to invest your money into higher quality items than something cheap that can wear out of break after only a short time.
“Purchasing a few high-quality items instead of having to constantly replace items which results in low spending over time,” explained Sherman Standberry, CPA and CEO of My CPA Coach.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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