7 'Frugal' Moves Secretly Draining Your Savings, According to Ramsey Solutions
Frugality, like most things in life, is often most successful in moderation. It’s one thing to embrace frugal practices known to work, like coupon stacking or meal prep, to better stick to your budget and spend less money. But it’s quite another to fall down the “What else can I do myself that’s cheaper?” rabbit hole and find yourself spending more money in an effort to save money.
In a recent episode of Smart Money Happy Hour, money experts George Kamel and Rachel Cruze shared their takes on popular frugal hacks which often become counterproductive and don’t have the desired impact you might imagine for your finances.
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The next time you’re considering these frugal strategies, pause and reconsider. They might end up costing you more time and money than you realize.
1. Buying in Bulk
Buying in bulk can help save money, but only if you plan to use everything you’re buying.
If the item comes with an expiration date, like fresh produce, and you can’t finish it off or freeze it before the date, this purchase is ultimately a loss for your wallet. It’s a waste of money and it leads to food waste.
2. Wasting Gas To Drive to the Cheap Gas Station
Should you drive an extra 10 miles to fill up your tank at the “cheap” gas station? Generally, the only time this frugal hack is worth it is if you’re already on the road, like taking a road trip. The best approach for everyday life is to use gas apps like Gas Buddy to find the cheapest gas prices near you.
3. Keeping Cheap Subscriptions
If you’re an Apple user, you can find some of these subscriptions by going into your iPhone under “settings” and clicking your name to find a list of active subscriptions. Cloud storage solutions and music streaming apps are among the most common ones.
These subscriptions don’t cost much — usually $3 to $10 a month — but they haven’t been canceled yet because it can be too much of a hassle. The monthly charges do add up, so it’s worth it to review your subscriptions on a regular basis and do the work necessary to unsubscribe from what you don’t use.
“You’ve got to think about how often have I used this in the past, how often do I use it now and into the future,” said Kamel.
4. Skimping out on Preventative Maintenance
Some preventative maintenance examples include taking care of your car, like rotating out your tires and keeping your physical wellness in check with regular doctor’s appointments.
You may think you’re saving money by avoiding these appointments, but going a prolonged amount of time without this care can result in a big bill later. You don’t want to skip regular teeth cleaning and only go to the dentist once your teeth start to hurt, for example.
5. Buying Things That Aren’t on Your List but They’re on Sale
One of the most common frugal hacks is creating a list of items you need and sticking to the list. So, what do you do if you’re at the store and spot something that looks fun or interesting? It’s not on your list, but it is on sale. Should you buy it or could it potentially drain your bank account without you realizing it?
You can buy sale items in moderation but try to view the purchase through a “test run” lens. Kamel told Cruze he will occasionally buy sale products that look interesting at Sprouts Farmers Market to try them out. If you like them, they might end up on your next grocery list. If not, then at least you tried and know for the future. Better yet, you didn’t pay full price.
6. Seeing Something and Thinking “I Can Make That Myself”
Can you? It depends on what you’re looking at and the level of competency needed to make said item.
If you’re trying to save money on Halloween costumes, for example, by attempting to sew or make your own, you need to be proficient in sewing and creative enough with crafts as well as able to expense the materials needed to make the costume. Sometimes the materials needed to DIY your project or assignment of choice can cost more than buying it ready-made.
7. Paying for the Cheapest Version of Something
Sometimes buying the cheapest version of something isn’t good for your budget when it turns out the product isn’t good quality or built to last. You might have to switch over to the more expensive item to ensure better quality and long-term use.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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