As you probably know, the East Coast of the United States is often highly celebrated for its rich history, extremely diverse culture, and unique lifestyle. From the bustling streets of New York City to the historical significance of Boston and Philadelphia, the region has a distinct character shaped by centuries of development. This character isn’t just about landmarks and attitudes; it extends deep into the daily lives of its residents, particularly how they handle their finances.
Among all these things that we love about the East, there’s something we could learn from, and that is their frugal money habits. While they might look wealthy and well-established, trust me, they have the most practical spending habits! This isn’t about being cheap; it’s about being smart, resourceful, and intentional with money. It’s a mindset forged in dense urban environments where every square foot and every dollar has to be maximized. This practicality is often hidden beneath a veneer of sophistication, but it’s a core element of the East Coast identity.
In fact, there are a couple of valuable lessons we can learn from them, especially if you’re living on the West Coast, where a different kind of lifestyle often prevails. The sprawling cities, car-centric culture, and emphasis on a more relaxed, experience-driven life on the West Coast can sometimes lead to different, and often more expensive, financial patterns. In this article, we will discuss all these healthy spending habits in detail and how we can incorporate them into our own lifestyles, regardless of which coast we call home!
They prefer public transportation.
The spending habits of East Coasters: Some cities like New York, Boston, and Washington, D.C., are well-known for their rather extensive public transit systems. This isn’t just a convenience; it’s a deeply ingrained part of the culture and a financial necessity for many. Relying on public transport is a daily reality that shapes schedules, housing choices, and budgets.
In fact, plenty of East Coasters made a habit of using subways, buses, and trains for their day-to-day endeavors. This way, they manage to save a significant amount on gas, parking, and, of course, car maintenance. Beyond those obvious costs, they also save on car insurance premiums, vehicle depreciation, and unexpected repair bills, which can easily derail a monthly budget. A monthly transit pass, while a significant expense, is often a fraction of the total cost of owning and operating a vehicle in a major city.
Lesson for the West Coast: The West Coast is wildly known for its preference to use cars. This car-dependent culture is a product of vast urban sprawl and historical development patterns that prioritized freeways over rail lines. However, there’s an increasing opportunity to use and invest in public transportation options, so why won’t West Coasters profit from that? Cities like Los Angeles, Seattle, and Portland are actively expanding their light rail and bus networks.
The shift will not only help them save more money, but they will also contribute to environmental sustainability. Consider the “last mile” problem: even if you live far from a station, combining public transit with a bike or scooter can still be cheaper and healthier than driving everywhere. By re-evaluating the absolute necessity of a car for every trip, West Coasters can unlock substantial savings and reduce their carbon footprint.
Compact living and efficient space usage
East coasters? Because of an ongoing increase in population and continuous historic development patterns, most East Coast residents are very used to living in smaller and more compact spaces. Think apartments, brownstones, and row houses instead of sprawling single-family homes with large yards. This reality forces a more intentional approach to what one owns and how one lives.
In other words, they are accustomed to moving a lot. While this might come with a lot of hassle and other types of costs, it also leads to lower energy costs. A smaller space is cheaper to heat in the winter and cool in the summer. Moreover, they are discouraged from accumulating excessive things they don’t even need. There’s simply no room for clutter. Every item must have a purpose or bring significant joy to justify the space it occupies. Frugal behavior at its finest.
Lesson for the West Coast: Well, West Coasters, I’m sorry to break it to you, but you could use a mindset focused on living efficiently rather than a lavishing one. The allure of a larger home with more space is strong, but it often comes with a much higher price tag in both mortgage/rent and utilities.
Just saying! You have no idea how much those housing and utility costs are dragging down your monthly budgets. This isn’t just about the bills; it’s about the “stuff” needed to fill that space. Embracing minimalism could also curb unnecessary spending on other things, like home furnishings and decor. It encourages a shift from “How big of a house can I afford?” to “How much space do I truly need to live comfortably and happily?” This change in perspective can free up thousands of dollars annually for travel, investments, or other goals.
Seasonal and local shopping
East coasters? With distinct seasons, East Coasters often shop for various seasonal produce and attire. This rhythm of life is built around the calendar. They buy fresh corn and tomatoes in the summer from local farm stands and apples and squash in the fall. Basically, they fully take advantage of seasonal sales and local markets, which is a wonderful thing.
This habit encourages eating more fresh produce and local foods, but also buying clothing items when it’s most economical. For example, savvy East Coasters know that the best time to buy a heavy winter coat is during the end-of-season clearance sales in March, not in the middle of a November cold snap. This forward-thinking approach applies to everything from groceries to garden supplies.
Lesson for the West Coast: Even if the West Coast enjoys a milder climate and a year-round growing season for many things, there’s still room for improvement when it comes to seasonal shopping. Every fruit and vegetable still has a peak season when it is most abundant, fresh, and, therefore, cheapest. Utilizing local farmer’s markets and other seasonal sales for clothing and other items could also lead to important savings. It also fosters a stronger connection to the local economy and agriculture. This principle extends beyond food; being mindful of retail cycles for electronics, furniture, and travel can lead to significant cost reductions.
Prioritizing savings and investments
East coasters? You might be surprised to read this, but there’s a very strong culture of financial planning and investment on the East Coast, especially in financial hubs such as New York City. This is partly due to the “old money” influence and the presence of Wall Street, which makes conversations about stocks, bonds, and retirement more commonplace. Many people prioritize savings and investments but also focus on long-term financial security. It’s often viewed as a fundamental responsibility, not an optional extra.
This mindset encourages starting early, often with a first job, and being consistent. The power of compound interest is a well-understood concept, and there’s a greater emphasis on building wealth steadily over decades rather than seeking quick, risky gains.
Lesson for the West Coast: West Coasters, particularly those in the dynamic but volatile tech industry, could easily benefit from adopting a more aggressive savings and investment mindset. The culture of innovation and high-risk, high-reward ventures can sometimes translate into personal finance, leading to impulsive spending when times are good and panic when the market turns. If you’re constantly seeking advice from financial advisors and exploring all kinds of investment options, you might be able to enhance your financial stability faster. Automating contributions to a 401(k) or an IRA, and building a solid emergency fund are crucial first steps to weathering economic ups and downs and building a secure future.
Networking and leveraging community resources
East Coast: Well, dense urban environments like the ones we see on the East Coast bring multiple benefits: they promote increased networking but also the use of community resources. Proximity breeds connection. Neighbors are more likely to know each other, share information, and rely on one another.
When we say community resources, we also talk about sharing information about different deals, discounts, and, of course, cheaper services within those communities. This could be a recommendation for a reliable and affordable plumber, sharing a subscription service, or organizing a clothing swap. People also utilize public libraries, community centers, and free local events more frequently. It’s a win-win situation from every angle.
Lesson for the West Coast: Building strong community networks and sharing common resources could ultimately lead to mutual financial benefits. Even in more spread-out suburban areas, technology can bridge the gap. Local social media groups, neighborhood forums, and apps like Nextdoor can be powerful tools for this. This could also include everything from childcare co-ops and tool-lending libraries to affordable services and community gatherings like potlucks instead of expensive nights out. By fostering a spirit of collaboration, West Coasters can create their own versions of these resource-rich communities.
These lessons in frugality can truly benefit everyone, no matter where they might be located. It’s not about East vs. West, but about being more mindful and strategic with our financial choices. If you’re open to embracing such habits, you will soon realize that there are many ways to live more economically and save more, freeing up your money for what truly matters to you.
Bad spending habits
Now that we discussed good examples, I think it’s worth taking it the other way around, too. Because for every good habit, there’s a bad one that can quietly sabotage your financial health. Irresponsible spending habits will make it much more difficult for you to achieve your financial goals, whether that’s buying a house, retiring early, or simply living without financial stress.
As these habits usually develop slowly, you might not realize how much of an impact they have on you. A daily latte here, an impulse buy there—they seem insignificant on their own. But over months and years, they compound into a significant drain on your resources. However, with the necessary amount of self-reflection and a dose of honesty, you could easily break bad spending habits and adopt a much healthier and frugal approach.
Relying on credit cards
Some people who want to maximize reward card points would rather make purchases with their credit card and pay the card off every month. In some ways, that could be a pretty smart way of stretching your budget, if you want our opinion. This strategy, known as “credit card churning” or “travel hacking,” can yield great rewards if—and only if—you have the discipline to pay the balance in full every single time.
However, if you make a habit of carrying your balance every month, you might lose money in interest charges. Those high Annual Percentage Rates (APRs) can quickly turn a $100 purchase into a $120 or $130 debt. Even more, relying on credit cards just to make ends meet could ultimately indicate that you really have to revise your budget and make some changes to better control your finances. It’s a red flag that your expenses are exceeding your income, and the high-interest debt is only making the problem worse.
Paying for convenience
Whether we’re talking about grabbing coffee on the way to work or simply picking up dinner while heading home, we all have little things that just make our lives so much better and easier. In our time-starved world, convenience feels like a luxury we’ve earned. But this luxury has a steep, often hidden, price tag.
The thing with these spending habits is that sometimes we end up paying much more for a convenience item. This goes beyond just food delivery fees; it includes paying for pre-cut vegetables, single-serving snack packs, and services that do things we could easily do ourselves. In fact, you can compare the cost of one coffee at Starbucks to the cost of a whole can of coffee in your pantry, and you’ll see why we’re even mentioning it in the first place. A $5 daily coffee habit adds up to over $1,800 a year—money that could be a vacation, a significant investment contribution, or a fully funded emergency fund.
You might want to ditch that tasty but expensive breakfast sandwich on your way to work and try to make room for some at-home meals instead. Think about meal prepping on Sundays; a couple of hours in the kitchen can save you time, money, and stress throughout the week. These are the kinds of switches that could ultimately add up to hundreds of dollars over the course of a year, or even a month.
Shopping without a list
People who are used to browsing stores usually make more spontaneous purchases. Supermarkets and big-box retailers are expertly designed to encourage this. Brightly colored displays on end-caps, tempting treats in the checkout aisle, and “special” sales are all psychological tricks to get you to buy more than you intended. This is good for them and bad for their budget, which, in the end, is still bad for them.
The thing with impulse purchases is that they get more expensive as time goes by, which makes it way harder to stick with your budget. That cute gadget or trendy top feels great in the moment, but the satisfaction is fleeting, while the hole in your budget remains. You could write a list ahead of time to make sure you avoid those extra and unnecessary purchases. Here, try these super cute grocery lists that will help you keep track of what you are shopping for. Sticking to the list requires discipline, but it’s one of the most effective ways to control your spending.
Besides, you’re less likely to make a second trip to the store for all the things you might have forgotten. Planning ahead saves you not just money on impulse buys, but also time and gas money from return trips. Another great tip: never shop when you’re hungry! You’re far more likely to fill your cart with unplanned, unhealthy, and expensive snacks.
Shopping emotionally
Let’s be honest; it’s not uncommon for our emotions to drive our decisions. We all do it. Had a bad day at work? A little “retail therapy” might seem like the perfect pick-me-up. Feeling bored? Browsing online stores can fill the time. Celebrating a promotion? A splurge feels deserved. As a matter of fact, there’s a recent study from the Journal of Consumer Psychology that shows how retail therapy can even make you feel happier and more in control.
But the problem is that these effects are only temporary, and as soon as they wear off, you’re only left with the same old situation that caused those emotions in the first place, plus a new credit card bill. It’s a toxic loop. The temporary high from the purchase fades, but the financial consequences linger, which can create even more stress, leading to more emotional spending.
The key to breaking this cycle is to first identify your triggers. Are you spending when you’re stressed, sad, or bored? Once you know the trigger, you can find healthier, non-spending alternatives. Feeling stressed? Go for a run, meditate, or call a friend. Feeling bored? Read a book from the library, work on a hobby, or watch a documentary. By replacing the shopping habit with a constructive one, you address the root emotion without damaging your finances.
If you found this article useful, we also recommend reading: 13 Collection Items That Are Now Worthless
