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Worst Mistakes People Make when Trying to Be Frugal

Many people are trying to live a frugal lifestyle, to save their money rather than spending it. These are often goal driven people who recognize the real value of holding on to their money. There are five big mistakes that people often make when they are trying to be frugal, we shall look at those and help you avoid making these budgeting and spending errors.

Fooling Yourself When Buying Sale Items

So many people tell themselves they saved money by buying certain items on sale. Even stores capitalize on this by reminding you how much you “Saved”, but in truth unless you actually put the “saved” money into a savings account in your bank you did not actually save money, you simply spent less than you might have if you had gone shopping on a different day.

Some people even buy more because they think they are saving money. This contradicts everything. If you are trying to be frugal you should be buying things on sale anyhow, but should not be buying more than you need, or kidding yourself into thinking you actually saved money.

Making Small Payments

When making any kind of payments, be it a down payment for a mortgage, or paying off a credit card, it is always best to pay as much as you can. Particularly when you consider buying a house, the amount of money you end up paying in the long run is far lower when you make a big down payment than when you make a small one. When paying off a credit card, or other debt, you should always pay more than the minimum payment required or you will end up paying a small fortune in interest.

Not Realizing Sometimes you have to Spend in Order to Scrimp

Old cars are gas guzzlers. Older appliances consume more electricity. Sometimes by spending some money to replace older items a person can save more money in the long run. If something is becoming worse for wear it may be worth it to replace it sooner rather than later.

Picking Price Over Quality

If you buy quality goods you do not need to replace them as often. Many frugal people look only at the price tag, while this may be fine for somethings, other times it is not. Buying better made items can reduce the need to replace them over and over, adding up to greater expenses over time.

Going Overboard

The fifth biggest mistake people make when trying to live a frugal lifestyle is going overboard, not allowing themselves some luxuries or rewards. It is a good ideal to use being frugal as a way to work towards a goal. Your goal could be the down payment on a house, a vacation, or even a once-a-month meal out.

Read Also:

Best Frugal Living Tips

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Comments (9)

great article!

Very nice write up Brenda. I love your articles.

Well done, a great concept for an article!

Excellent advice. 

Great tips. I know for a fact that spending less for an item is sometimes a mistake. I bought a blender for $12 and it didn't even last for 12 weeks. I had to buy another one. This time I bought an Oster blender and it is a WORKHORSE!!! I love it and I am glad I spend the money.

Superb tips!

Excellent information. My late father used to say "You can't take it with you." He died suddenly and we were all happy that he enjoyed spending some money on life enjoyment.

Interesting an dinformative

Excellent advice. I am particularly guilty of the first item.