Why Being Frugal Could Be Costing You More
One simple thing I’ve learned on this journey to save money is that sometimes my frugal attempts will cost me more money instead of save me money. I’ve had to learn to stop beating myself up when those times arose and instead just learn from my mistakes and move on. So what type of things will cost you more?
- You buy a cheaper product only to find out it doesn’t work or is extremely inferior. Beware of this when purchasing generic products. You don’t want to have to spend money on both the cheaper item and the more expensive item – instead learn which items are worth the added expense for the quality.
- Driving all over town to get a good price. This is not something I see people do so much now that gas is over $4 a gallon, but I used to hear about it a lot. Driving 10 extra miles to save $1.00 does not make sense no matter how you add it up. Now, if it’s on your way and the savings are significant, then consider it.
- Trying to make your own products. Need I mention my dishwasher detergent? I also had good intentions of making laundry soap and purchased the Borax and Zote, neither of which have been used. Now if you’ve already tried it and it works for you, then this doesn’t apply to you. I know many people have had great experiences doing this – I’m just not one of them. Good intentions will not save you money.
- Buying a more expensive product because you have a coupon. This is really a tricky one because if used correctly, coupons can be wonderful things. But most beginners don’t understand how they should be used and will instead just grab a product off the shelf because they have a coupon for it. Do yourself a favor and take a look at your alternatives – you may be able to find a better price without a coupon.
- Buying things you don’t need just because they’re cheap. This is a classic pitfall for anyone, not just frugal people. When you see something that is a great deal stop a minute and think before you buy. Do you need it? Will you be able to use it before it goes bad? Is it really practical? And the excuse of “I can resell it on eBay” won’t work either because the odds are good that you won’t recoup your costs. Stop kidding yourself and save your money!
So as you go throughout your day, really analyze the ways you save money. Could there be areas in which you’re losing money in the process? Fix those problems and move ahead with new ways to be frugal.
great point about not beating yourself up! We all make mistakes, and as long as you can learn from them, the experience was NOT worthless!
A point about generics: I like to look for ones that have money back guarantees. I have tried two Target products (again, i point out that study after study has target matching, or beating, prices at walmart) that i didn’t like/match my expectations. I called up their #, and got almost double my money back via gift-coupons off anything in the store. Not all target products have this, but definitly explore those places that have “guarantee”s. Aldis is another place that has $ back, but i haven’t used that yet.
I am guilty as the guy who has to drive around town and check all the options before buying anything…mainly with large items though. We just furnished our new house, and had to buy all the mani stuff…fridges, tvs, couches etc. I don’t feel too bad about it though, some of the savings you can make on larger items are worth it. But for smaller things, the current gas price is a killer for this habit.
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Driving all over town to save a buck, and buying a cheaper product to find out it breaks or doesn’t work. These are two things the company I work for will do time after time and I don’t get it. The cheap tools we buy break after one or two uses, and a quality brand name tool might last years for a few more dollars.
One older gentleman I know refers to this kind of behavior as “tripping over a dollar bill because you’re too excited to grab that dime off the sidewalk”.
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These are good pieces of advice. I especially have to struggle to remember item 1, it is so tempting to go with a cheaper, quick-fix sometimes. Having the long term vision to pay more for quality really pays off.
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At least the Borax has a bunch of other uses! My laundry came out so much cleaner when I tossed in a half a scoop. I didn’t care for the homemade stuff either & the dishwasher stuff was just useless.
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I think these are great points, but I would argue that the majority of these practices are actually more cheap than they are frugal. A frugal person uses resources wisely, whereas a cheap person is more susceptible to marketing gimmicks and less smart with their money. There’s an interesting blog post about the difference between being frugal and being cheap at Frugal Dad: http://frugaldad.com/2008/03/26/the-difference-in-being-frugal-and-being-cheap/
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I completely agree with this post. Usually I am able to make the right decision but I have indeed found instances where I bought the off brand product and then ended up buying the good one also. And I must admit that makes me feel really bad.
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Heard some similar comments about “being green”…basically the point that guilt isn’t a great driver of new behavior. Anything you can do to make the green ( or frugal ) way as good as, or better, than the typical way, will work better than guilt.
Thanks for these, can put being a cheapo like me into perspective
I was always astounded when my father would come home with something like two bags of oranges because they were cheap! We would only eat about a third of them and the rest would go bad! I have also had recent experience with buying cheaper products and having them break on me really quickly!
Thanks,
Forest.
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