Being frugal is often mistaken as being cheap, but that is certainly not the case. People who embrace a frugal lifestyle are merely more observant and in tune with their finances than others, and they look for the best possible ways to save money at every opportunity. However, even if you are frugal, you’re probably making a few of these common mistakes with your finances.
In This Post:
Buying the Cheapest Item
Being frugal and being cheap are completely different. The difference is in the quality of your purchases, and many people assume that the cheapest option is the best. The best option, however, is not necessarily the cheapest; it’s the one that provides you with the best value for the price spent.
Buying Too Many Bulk Items
You will use toilet paper for the rest of your life, so if buying 150 cases with 20 rolls in each for half price is an option you have; take it. Too many frugal people assume they always have to buy in bulk to save, but if you don’t eat 25 tomatoes in a week, you don’t want to buy them because they’re on sale because they’ll go bad before you have the chance.
You might believe that doing projects yourself is the frugal choice, but it isn’t always. If you need to wire your house for electricity and you aren’t an electrician and have never done it before, it might be cheaper to hire a professional. Doing it yourself is great, but if you don’t know what you’re doing and you mess up, it can get very expensive. Sometimes it’s a more frugal option just to call a professional.
Going Out of the Way
Gas is expensive, but it is not frugal to drive 15 miles across town to purchase gas that’s $.03 less expensive per gallon. With a 16 gallon tank your savings is only $.48, but you just drove 15 miles one way to get it. The same goes for any other item if the savings aren’t significant.
Being frugal is great, but being frugal requires a lot of thought. You might assume you are being frugal, but you might actually be wasting more money that you are actually saving. Being frugal requires a great deal of thought, and a lot of patience.
About the Author
Carly Lance thinks of herself as a personal finance junkie and loves to blog about saving money, frugal living and getting out of debt whenever she can. She believes a happy life = happy finances. She is also employed by Personal Bankruptcy Canada, a company of experts in the bankruptcy and insolvency act.