I’m a Financial Advisor: These 5 Frugal Moves Are a Waste of Time. Do This Instead

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Though much of social media and pop culture still encourages people to spend big and spend often, there’s also a strong undercurrent of influencers and experts whose platforms promote extreme frugality. Sometimes their advice echoes what you might have heard from well-meaning parents and grandparents about how to live thriftily.

But not all frugal advice actually helps you build wealth. When being frugal goes wrong, or is applied in the wrong places, you could end up wasting your time and, in some cases, costing yourself more money in the long run.

This can all feel confusing. But don’t worry. GOBankingRates spoke with Gloria Garcia Cisneros, a certified financial planner and wealth manager at LourdMurray, and Riley Saunders, a certified financial planner and financial advisor with Cassady & Company Inc., to identify the frugal moves that often don’t make sense in practice. They also shared the steps that will actually help you save and grow your money.

Buying the Cheapest Version of Everything

Cisneros understands the appeal of buying the cheapest version of every product. A low price tag can lull you into a false sense of getting a real bargain. But she also wants you to recognize the difference between being cost-conscious and being cheap. In the latter case, you could be compromising quality for cost, which will likely force you to spend more on replacing those items in the long run.

“Replacing low-quality items every year ends up costing more than buying one well-made, durable version,” she said. “I see this with appliances, cookware, technology — you name it. Your money strategy shouldn’t create a cycle of constant repairs and replacements. That actually feeds into overspending over time.”

She points to a common example: buying the cheapest pans and cookware, only for them to scratch and wear out every few months. Constantly replacing them ends up costing more than simply buying one high-quality set upfront.

What to do instead: Cisneros encourages clients to think in terms of cost per use. An item that costs $150 but lasts five years is ultimately cheaper than a $40 item you replace every year. “I always say, ‘Quality is a financial strategy,'” she said.

Extreme Deal Hunting

Cisneros loves a good deal. But there’s a big difference between clipping coupons and turning bargain hunting into a competitive sport. She says people who spend hours driving between grocery stores just to save a few dollars risk spending more money in gas and vehicle wear than they’re actually saving — not to mention the toll on their mental energy.

“Honestly, I don’t think the time put in is worth it,” she said. “For many people, especially first-generation Americans who already carry a lot of mental load, this leads to decision fatigue and a really unhealthy relationship with money.”

What to do instead: Cisneros advises focusing your price-hunting efforts on bigger-ticket items that will save you a significant amount. In the meantime, you can use the time you would have spent driving around like an extra in “Mad Max: Discount Wasteland” to make small yet substantive adjustments to your everyday budget.

“If there’s a major sale or a great coupon, that’s great, but don’t spend hours searching for them,” she said. “Use that time to negotiate recurring bills, review insurance annually, maximize your employer benefits or review your spending to identify forgotten subscriptions. Small savings matter, but time and mental energy matter, too.”

DIYing Everything

In theory, being totally self-sufficient sounds good. But not every task should be a do-it-yourself project — especially when the risks are high. A mistake while patching a hole in the wall is one thing. Errors in tax filings or damaging your car during a DIY engine repair are another.

“I understand the desire to learn and do things yourself,” Cisneros said. “But I’ve seen people try to DIY taxes, estate planning, insurance decisions and big home projects to ‘save money,’ only to spend more fixing mistakes.”

When people are operating from a fear-based or scarcity mindset, it’s easy to assume they need to handle everything themselves. But one wrong move — and the subsequent expensive fix — often ends up costing more than what you would have paid to hire a pro in the first place.

What to do instead: “Sometimes paying a professional is the cheaper choice in the long run,” Cisneros said. “Financial advisors, tax pros, attorneys and contractors exist because complexity can be costly. There’s a reason for the saying, ‘Do you want to do it right or do you want to do it twice?'”

Ruining Your Goodwill With Friends

Picture it: You’re out to dinner with friends, and when the check comes, you grab it and start calculating who owes what — down to the last breadstick. Meanwhile, everyone is staring daggers at you, and the group chat will soon explode with messages about how you’re not being invited out again.

Can you blame them? Saunders certainly can’t.

“Cutting costs to the point where it chips away at your goodwill is one of the easiest traps people fall into with extreme frugality,” he said. “A classic example is someone itemizing a dinner bill to avoid covering that one extra appetizer or beer that a friend ordered, even though everyone’s totals were nearly the same.”

What to do instead: Just split the check evenly. You may save a few bucks by breaking out your calculator, but it signals to friends that you value a few dollars over the experience of spending time with them.

“I usually encourage people to split the check evenly and preserve the moment rather than let a couple of dollars derail an otherwise good time,” he said.

Depriving Yourself Into Burnout

Cisneros sees many people fall for the belief that self-deprivation is the fastest pathway to wealth. In practice, that approach often leads to exhaustion — and eventually, impulsive spending.

“A lot of extreme frugality stems from fear, especially for first-gen, immigrant or low-income households where money wasn’t abundant growing up,” she said. “Chronic deprivation can lead to burnout and binge spending — the classic ‘I’ve been so good, I deserve this’ spiral. Balance and intention will always beat extreme restriction.”

What to do instead: Look at the bigger picture, and remember that you still deserve to enjoy your life right now.

“Wealth is built through balance,” Cisneros said. “Spend intentionally, save automatically, invest consistently. You’re better off finding ways to increase income than pinching pennies to extremes.”

Cisneros added that she wishes there were broader conversations about the downsides of extreme frugality culture. Many people feel they’re doing everything right, yet still struggle — not because they’re undisciplined, but because they’re applying that discipline in the wrong places.

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