Adopting a frugal lifestyle is a fantastic way to save money and build a sustainable, secure financial future.
While cutting down costs and living below your means can help you achieve your financial goals, overdoing it could end up costing you a lot more in the future and wasting time.
Here are 13 so-called frugal habits that are a waste of time and money, and what to do instead.
Spending a Lot of Time Comparison Shopping
What to Do Instead: Compare prices at two or three trusted stores and stick to those. Use a price-checking app to save time and cut down on unnecessary trips.
A few people take comparison shopping too far by spending hours checking the prices of every single store. Some retailers have hidden costs that are not reflected in the initial price. For example, a few stores offer low prices but charge additional service charges or higher shipping fees.
Other stores have outdated information. You may waste time and a lot more money on gas moving from one store to another.
Refusing To Spend on Things You Love
What to Do Instead: Build a “fun money” category into your budget so you can enjoy small treats without guilt.
Cutting out the little joys from your life, like an occasional dinner, coffee, or a lovely dress, will not help you save hundreds of dollars annually. Finding the right balance and learning how to manage your expenses while spending on things you love occasionally is essential because it gives you something to look forward to after working hard.
Skipping Risky Investments
What to Do Instead: Diversify your investments and work with a financial expert to understand the level of risk that fits your goals.
Avoiding specific investment opportunities because they are risky might seem like a financially savvy move, but you could miss out on higher returns in the long run. Consulting a financial expert can help you better understand the available investment opportunities based on your risk tolerance.
Investing in some of these risky investments can be a smart move that could secure your financial future.
Extreme Couponing
What to Do Instead: Focus only on coupons for items you already buy or use regularly.
Some individuals in the middle class spend a lot of time looking for coupons in store apps or clipping multiple coupons to get discounts. Extreme couponing wastes time and money, especially when discounts on products you rarely use are minimal.
Trying to DIY Everything
What to Do Instead: Handle simple tasks yourself, but call a professional for anything technical, dangerous, or outside your skill level.
Fixing broken items in your home can be a fun way to save money. However, some people attempt to do everything, which can be costly and risky. For example, handling electrical projects when you don’t have any electrical background or tools to do the job right could mean finding an electrician to fix the problem.
That will cost you more in repairs and labor. Knowing your limits in your DIY endeavors will help you save money and time.
Buying Perishables in Bulk
What to Do Instead: Buy perishables in smaller amounts and reserve bulk purchases for long-lasting pantry staples.
Buying items in bulk can be cost-effective for items you frequently use. However, purchasing perishable items like groceries in bulk may be a good use of money. Some items have a limited shelf life, and you may throw them away.
Buying Stuff Because It’s on Sale
What to Do Instead: Stick to a list and only buy sale items you already planned to purchase.
Shopping for items you don’t need because they are on sale may look like an excellent way to save money, but it’s not. Retailers are crafty and will use sales to trick you into purchasing more, so you may end up buying items you don’t need.
Going For Cheaper Items Over Quality Products
What to Do Instead: Choose items with the best long-term value, not simply the lowest upfront price.
Choosing the cheapest item may seem like a money-saving, frugal habit upfront, but it can cost you in the long run. Some of these products are of poor quality and are likely to break or wear out quickly. You may spend a lot more to replace the broken item, a cost you’d have avoided firsthand by purchasing a quality item.
Extreme Thrifting
What to Do Instead: Thrift thoughtfully and stick to items that are safe and worthwhile to buy secondhand.
Shopping at thrift stores gives you endless options and lets you save by avoiding overbuying new items. Extreme thrifting and going for the cheapest item may not always be worth your time and money. It always pays to buy new items like mattresses, helmets, tires, upholstered furniture, cribs, and car seats.
Driving Long Distances Looking for the Best Deals
What to Do Instead: Pick a few local stores with fair pricing and shop within a small radius to save time and gas.
Getting your groceries and other essentials on sale is great for cutting costs. However, there may be better uses of your time than driving to different stores to scout for the best deals. Purchasing from your local store could help you save time and money.
Accumulating Free Samples and Products
What to Do Instead: Only request samples for products you already know you’ll use or want to test intentionally.
Browsing different sites will likely lead you to many free samples. Although this frugal habit can help you save money, some options are not worth it. Some websites require you to fill out multiple free sample forms, which is not an efficient use of time.
Also, most free samples have a bad packaging/product ratio. Interestingly, some of these freebies are items you don’t usually use or need, and they can end up cluttering your space and lead to waste.
Skimping on Personal Development
What to Do Instead: Set aside a small budget each year for courses, books, or skill-building that can increase your earning potential.
Failing to invest in personal development limits your growth potential and reduces your chances of advancing your career or business. Although you might save some money, the long-term benefits outweigh the little investment you’ll have to part with at the beginning.
Skipping Insurance
What to Do Instead: Maintain essential insurance and adjust coverage levels as your finances change instead of cutting it entirely.
Some families may skip insurance when finances are tight. However, this is not always an excellent way to cut costs, even when you don’t need it. You could end up with a health emergency or an urgent car repair that you’ll have to pay out of your pocket. Failing to account for these unseen expenses could put you in a worse financial position.
While frugality can help you save money, knowing how to balance immediate savings and long-term gains is essential. Recognizing which habits are a waste of time and money can help you achieve a more secure financial future.
