In our modern environment of ever-increasing inflation paired with recession fears, frugality is crucial.
But are you doing frugality wrong?
You might be, if you’re making any of these frugal mistakes.
What are Frugal Mistakes?
A frugal mistake is anything you do thinking it’s saving you money, but that actually costs more in the long run.
A lot of them are common frugal hacks that worked twenty years ago, while others seem like they’d save money but actually don’t.
As the battle between customers and consumers for the best deal rages ever onward, frugality evolves. Businesses nip some tried and true tips in the bud, forcing customers to develop different savings strategies.
But it’s not just about money. It’s also about the more precious commodity: time.
Here, we share the biggest frugal mistakes that a lot of people make, in hopes that you consider what you’re really saving.
Couponing
The world of extreme couponing is coming to an end. Although some savvy customers can still score great deals with coupons, companies are wising up and placing more restrictions on deals to prevent abuse.
And with the rise of virtual coupon platforms and cash-back apps, physically clipping coupons is rarely worth the time.
Sewing
Clothes are so cheap that fixing old clothes is rarely more affordable than buying new ones. The rise in hobby sewing also makes sewing supplies more expensive than they used to be.
We’re not saying you shouldn’t sew. I spent ten minutes putting a button back on my pants, saving myself the cost of a new pair. It still works for small jobs.
But making most of your own clothes and repairing big damage probably won’t save you much money.
Buy a Beater
Buying a beater used to be the smart move; now it’s a frugal mistake.
When I was a teenager, I could get a used beater for $500 bucks and drive that sucker into the ground. Today, I can’t find anything for less than $5000 – and those have over 200,000 miles!
It’s sad to say, but I think it’s better to buy a cheap new car (you can still find a few sedans and hatchbacks for around $20,000) or a certified used car with a warranty than risk spending thousands on a beater that will stop working in a month.
Black Friday
I once scored a camera, memory card, gaming controller, and Bluetooth speaker for four dollars, combining credit card rewards and Black Friday deals.
Those days are long gone.
Black Friday sales attract more and more people while getting worse and worse for consumers.
Stores will advertise $10 televisions but only have one available, causing a stampede, while the rest of the stuff goes on sale for similar price points throughout the year.
And you know what’s even worse? Rumor has it that the product with the deal is lower quality than the normal product anyway.
Washing Dishes
Washing dishes by hand instead of using the dishwasher is an oft-shared frugal hack, but it’s not really saving you much money.
Modern dishwashers often use less water than if you wash by hand, and the time savings are well worth the tiny extra charge you’ll see on your utility bill.
Canned Soup
Frugal experts say eating cans of soup as backup meals saves money, but with food prices rising, a can of decent soup is $4-5, and it typically doesn’t even have enough calories to count as a complete meal.
We get it, you want to eat well on a budget, but a sodium-filled half meal isn’t it. Check out our cheap meal ideas to avoid making this frugal mistake.
Pot Roasts
Pot roast, beef stew, and pork roast were all staples of the working class, but with rising meat prices, they’re now luxury meals.
I don’t think dining on a pot roast is a frugal mistake, because we should all eat the things we enjoy. However, if you’re only making it in a desperate attempt to save money, you might want to rethink your grocery list.
It’s probably costing you more than you think.
Cheaper Gas
It’s rarely worthwhile to drive around looking for cheaper gas. Most gas stations have similar prices, and the difference usually isn’t worth the extra gas you spend going to the more affordable place.
It feels like you’re saving money because you found the place that’s five cents cheaper per gallon, but how much gas did you spend driving there? How much time did you waste?
It’s not worth it.
Grocery Store Hopping
Some folks don’t just drive around looking for cheaper gas; they also drive around looking for cheaper grocery stores!
Competing stores often have deals on different products, hoping to entice shoppers. But that doesn’t mean you need to visit both stores.
Why would you spend all that extra time and gas money traveling to a completely different store just to save a few cents on a few products?
It’s not worth it.
Thrifting
When thrifting got cool, the stores learned they could raise their prices. You used to score great deals on threads and home goods at thrift stores, but now they’re almost as expensive as buying new stuff at Walmart and Target.
I still love thrifting, because you can find some really cool stuff. But it’s no longer a great way to save money.
It’s unfortunate, because a lot of people depended on the low prices at thrift stores to furnish their homes and clothe their families.
Avoid Credit
In the past, frugal-minded people could avoid most credit.
However, in today’s world, everything is about your creditworthiness, so avoiding it altogether is a massive frugal mistake. People without a credit history will pay higher interest rates for loans when they eventually want to buy a car or a house.
It’s better to have credit and use it responsibly than to avoid it altogether.
Hostels
In the beforetimes, young frugal travelers could use hostels to stay in fantastic cities at bargain basement prices.
Although they’re usually cheaper than hotels, the rising cost of staying in a hostel dorm makes booking your own private room a lot more attractive.
Fast Food
I don’t think eating fast food was ever a frugal hack, but when you needed a cheap meal, fast food was always a bargain.
Not anymore.
Fast food restaurants are raising their prices so much that it’s cheaper to go to a sit-down restaurant.
Why would you pay more money for worse food?
DIY Home Improvement
Frugal pros will tell you that you can build a fence and remodel a kitchen all on your own. I think this is the biggest frugal myth that ever mythed.
Even before everything got outrageously expensive, most people don’t have the skills to rebuild a house.
I learned this lesson the hard way when I decided to buy a fixer-upper with vast dreams of a massive home renovation. The first project, installing a panel floor, taught me that I do not have the DIY skills needed to renovate a house.
It definitely wasn’t the genius frugal move I thought it would be.
All the DIY
Melinda Nagy via Shutterstock.com.
It’s not just home repairs.
A lot of people want to DIY all sorts of things. They insist on changing their own oil or crafting their own furniture to save a few bucks.
If you have the skills and enjoy the work, go for it. But professionals are professionals for a reason, so if you don’t really know what you’re doing, you might end up paying more in the long run.
Homemade Laundry Detergent
Tide is expensive, but I would much rather pay the twenty bucks for something ready in the bottle than pay who knows how much for ingredients, then spend hours mixing some weird concoction that might not even work.
Sometimes convenience is worth the higher price tag.
And Hygiene Products
People DIY all sorts of things, not just detergent, thinking they’re saving money. I’ve seen people make soap, chapstick, bath bombs, deodorant, candles, and more.
Usually, they spend far more money on supplies, start-up costs, and time than they save.
That’s not to say you shouldn’t do it. If you love making these things, have fun with it. It’s only a frugal mistake if you’re doing it for the sole purpose of saving money.
Which brings us to our next point.
Skipping Your Favorite Hobby
The biggest frugal mistake you can make is being so miserly that you refuse to enjoy life.
Far too many extreme frugal enthusiasts only look at the price tag, ignoring other tangible benefits of hobbies (and other things that bring us joy).
Don’t be so frugal that you neglect relationships, self-improvement, self-care, and wellness. You should spend money on things that bring you joy.
Bulk Buying
It may be cheaper by the unit, but does that matter if it expires before you can use it all?
A lot of frugal shoppers don’t think about that – they only look at the price tags.
Shopping in bulk isn’t always a frugal mistake. It still works for shelf-stable and frozen products. But don’t buy the giant box of broccoli unless you have a plan to use it all.
Buying Generic
Yes, generic products are almost always cheaper than their name-brand counterparts.
But trust me, you don’t want them.
Although some generic items are fantastic, others leave much to be desired. Don’t compromise quality to save a few pennies. Check out our list of the generic items which aren’t worth the money you save.
Capturing Bath Water
Some folks take frugality to the extreme by capturing bath water in buckets while showers and sinks are heating up.
Although I appreciate people who refuse to waste one of our most precious resources, I think it’s a little too much effort for the reward – especially if you’re doing it to save money.
Gardening
Gardening as a hobby? Awesome!
Gardening to save money on food? Probably not worth your time.
It’s not all that frugal after you account for the costs of the plants, soil, and the time you spend cultivating it.
The Biggest Frugal Mistakes
Although we highlighted some great examples, the biggest frugal mistakes all boil down to two major themes:
- Time vs. Money
- Penny Wise, Pound Foolish
Time Vs. Money
Too many people get caught up in dollar signs and ignore the simple truth that time is also money. If you can afford to free up your time, you should, even if it isn’t necessarily frugal.
When you pay someone to do mundane tasks for you, you create more time to focus on the things you really want to be doing.
A lot of these frugal mistakes, like all the DIY and homemade stuff, fall under this category. If you don’t enjoy doing it (and aren’t good at it) just pay someone and move on. You’ll be much happier.
Penny Wise, Pound Foolish
The idiom, dating to the 18th century, describes people who worry far more about small sums of money than big ones.
Things like wasting gallons of gas to save pennies on a fill-up, or spending hundreds of dollars to save a few cents on vegetables, fall into this category.
To avoid making a massive frugal mistake, think of the big picture before making a decision. If it will cost you more in the long run, consider whether it’s worthwhile or not.
It might be – for example, if you love gardening, you should absolutely spend the extra money on home-grown veggies.
But don’t waste extra money trying to save money.
What Would You Add?
What’s the biggest frugal mistake you see people making? What should they do instead?
Share your thoughts in the comments!