10 Frugal Habits That Aren’t Worth It for the Middle Class
Written by
Martin Dasko
Edited by
Susan Kim
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Certain frugal habits will help you save money, so you have more to invest and contribute to your retirement accounts. Then again, certain frugal habits aren’t worth the hassle and effort. This article aims to help you determine which frugal habits are worth keeping and which are worth ditching for the middle class.
Extreme Couponing
There’s nothing wrong with finding coupons or looking for a better deal, but you don’t want to devote hours to saving a few pennies. Extreme couponing and spending time trying to drive around to find the best deal on something isn’t always worth it.
There are numerous options for saving on your shopping now, like downloading a comparison shopping app or using a cash-back credit card. You don’t have to spend your limited free time finding coupons.
There are better ways to spend your free time to improve your financial situation. For example, you could be better off devoting that energy to reading a book or learning a new skill instead of finding a coupon to save a dollar.
Trying To Save on Critical Daily Items
There are times when you should aim to save money, and then there are times when you shouldn’t be too frugal. When it comes to critical items you use daily, you’ll want to invest in your comfort, so you’re not constantly feeling miserable.
What are some examples of items that you shouldn’t be frugal with?
- Your mattress. If you get the recommended eight hours of sleep per night, you spend a third of your life on your mattress. You don’t want to feel uncomfortable or miss out on a quality night’s rest because you want to save on this critical item.
- Your shoes. If you work a job requiring you to move around often or are always on the go, you want to ensure that you have the right shoes.
Cutting Out Little Joys From Your Life
Traditional financial experts seem to enjoy discussing how people shouldn’t spend money on coffee and other little joys. Even though you can save a few dollars by never indulging in take-out coffee or eating out, the reality is that you’ll also miss out on the little joys that give you something to look forward to.
The goal is to try to strike the perfect balance so that you don’t feel guilty about treating yourself occasionally.
Not Investing in Your Education
If you want to increase your income or be more valuable in your company, you’ll want to invest money in your education. You don’t want to limit your career options because you were too frugal to take a weekend course. This is why not investing in your education is a frugal habit that needs to be dropped.
As your income increases, you’ll want to continue spending money on learning more to earn more. You don’t want to limit yourself with your own frugality.
Skimping on Insurance
You can’t avoid insurance. You don’t want to be frugal when purchasing the right property, vehicle or health insurance.
While insurance costs aren’t always cheap, the money you spend upfront to purchase the right coverage for your situation will pay off in the long run. For example, if your home were flooded or you have a health emergency, you don’t want to discover that you don’t have the proper coverage at the worst moment. Trying to be frugal with insurance will cost you more eventually, and it would add unnecessary stress.
Not Spending the Money on Necessary Maintenance Work
You can’t avoid this expense if your vehicle or home requires regular maintenance. You’ll want to spend the money upfront on maintenance costs needed in your life. If you don’t properly maintain your home or vehicle, the bill will be high in the future.
Ignoring Your Mental Health
Taking care of your mental health is crucial, because you can’t perform at your best if you’re not feeling your best.
What are ways you can spend money on your mental health?
- Treat yourself to a trip.
- Take time off when needed.
- Observe and admit when you need a break.
Ignoring Your Physical Health
While it can be tempting to look for ways to cut costs, your gym membership isn’t something that you want to eliminate from your life totally — as long as you’re using it.
Ignoring your physical health will impact your future quality of life, because you can’t enjoy yourself if you don’t have the health or energy. It’s also essential that you find ways to invest in your physical health so that you can do your best to keep future healthcare bills down.
Not Planning for Your Financial Future
At some point, you have to spend some money to plan for your financial future. You can’t be frugal with your financial knowledge, because this will hurt your future plans.
How can you invest in your financial future?
- Purchase books on financial planning.
- Work with a financial planner to make a retirement plan.
- Start investing your money as early as possible instead of solely focusing on saving.
You don’t want to be stuck working well into your golden years because you didn’t invest in your financial knowledge when you were younger.
Trying To DIY Everything
There will be times when it makes sense to perform your own tasks around the house, but there are also times when you’re better off hiring professionals so you don’t do the job incorrectly. Trying to do everything on your own can also be costly, since you’re taking time away from other activities that could bring in more money.
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