When Being Frugal Becomes Illegal

I’ve seen a few discussions regarding the difference between being frugal and being cheap. Just this morning I read Crossing the Line: When does frugal become cheap? and again it got me thinking about some of the crazy things people will do to save money. But, there is a bigger issue to think about. When does being frugal become illegal? Here are 5 ways:

1. Downloading software/music/movies for free. Yes, a lot of software, CDs and DVDs are outrageously priced, but that does not make it legal to obtain them for free through shady sources. And no, just because everyone else is doing it doesn’t make it legal either. That is, of course, unless the thought of the FBI knocking on your door excites you. INSTEAD: Obtain used software at yard sales, eBay or from friends. Music can be downloaded from iTunes for 99 cents a song. Or find a video store that will rent movies for a buck. Vongo might be another good choice for you if you rent a lot of movies each month.
2. Creative accounting on your income taxes. This is especially tempting for those of us who are considered independent contractors. The more deductions you have, the less tax you pay on your income. Weigh the options – save a little money and worry about Uncle Sam knocking on your door or pay the taxes you rightfully owe. INSTEAD: Know what you can and can’t deduct – there are probably many categories that you overlook. Save receipts and keep good records and hopefully Uncle Sam won’t bother you.
3. Getting a “special” cable box from a friend. A word of advice – cable boxes typically come from the cable company. If you’re buying one from a friend, chances are good that you’re doing something illegal. I’m sure you’re saving lots of money – but is it worth the risk of getting caught? INSTEAD: Look into lower priced alternatives to your local cable company. Satellite companies tend to cost less and their packages have the premium channels you want.
4. Knowing the cashier didn’t charge you for something. You’re watching the cashier scan your items and she accidentally skips one. SCORE! There’s $9.99 you just saved! Oh, but wait…what do you do when you walk out the door, the alarm goes off and the item is not on your receipt? I think they might use the word “shoplifting” a few times. “Prosecution” might even be mentioned. INSTEAD: Don’t buy what you can’t afford. If you really really want something, comparison shop and find it on sale. Then, when the cashier forgets to scan it, you can remind her. No police involvement, no embarrassment.
5. Borrowing supplies from work. I think people use the word borrow to help justify their actions. A ream of paper – $2.50, a pack of pens – $1.99, highlighters – $2.99. Bail because your employer turned you in for stealing – $1000. INSTEAD: If Walmart is too pricey for you, check our your local dollar store. They typically have these supplies for – you guessed it – A BUCK!

So, please, before you do something that may be considered unethical or illegal – think about it. Are the consequences worth what you might save?