Don’t Believe These 8 Frugal Living Myths (They Actually Cost You More)
Written by
Cindy Lamothe
Edited by
Joe Evans
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If you live a frugal lifestyle but can’t seem to save any extra money, it’s time to have a hard look at these supposedly “frugal” strategies. In other words, being cheap can cost you over time.
“When it comes to frugal living tips, I’ve learned that some tips have been exaggerated, making them nothing but myths that sound good but lack practicality,” said Mafe Aclado, finance expert and general manager of Coupon Snake.
Here are some frugal living myths that experts say cost you more.
Myth: There’s No Limit to How Much You Can DIY
“You shouldn’t believe this myth because frugal living doesn’t mean doing everything yourself. Instead, it’s about finding the most cost-efficient solution,” Aclado said. “And the truth is, sometimes, the most cost-efficient solution is hiring a handyman, not doing it yourself.”
She said one of the errors in this frugal living tip and why it would cost you more, is your skill limitations. And that’s even after you’ve watched a few videos on YouTube to help you figure out the best ways to go about a DIY project.
“Unless you are an expert, when you do it yourself, you would never be able to achieve the same result an expert would,” Aclado said. “So, doing it yourself would not only cost you more time because you are inexperienced, but it would also cost you more money because there is a great chance that your DIY efforts would lead to further complications.”
Myth: Convenience Should Be at the Bottom of Your Financial Priorities
One of the major reasons this frugal living myth doesn’t work for anyone, but instead costs them money — according to Aclado — is that it lacks balance.
“Paying for convenience shouldn’t be the least of your financial priorities, because though you may be able to save more at first, you run the risk of getting burnt out quickly because this lifestyle is hardly sustainable as it limits your chances of finding life satisfaction and fulfilling,” Aclado said.
Myth: The Cheapest Item Is the Most Frugal Choice
“One of the most popular yet untrue myths about frugal living is that cheap means frugal,” Aclado said. “Frugal living isn’t a lifestyle you’re forced into because you are poor and can’t afford to buy quality and durable items, it’s a choice to prioritize usefulness, quality, durability and longevity over trendy items.”
Not only is it untrue, but this mindset often costs you more over time. For example, if you buy a low-quality product that you end up having to replace a lot. Finding ways to save your money is the best way to sustain a frugal lifestyle.
Myth: You Should Prioritize Short-Term Savings Over Long-Term Growth
Skipping professional investment management to save on fees might seem wise, but it often results in missed opportunities for higher returns.
“Some think frugality means cutting costs at every turn, but in the investment world, this mindset can be costly,” said Peter Murphy Lewis, finance expert and head of growth at WebStreet. “The irony? Saving a few bucks today could cost you thousands in lost growth tomorrow.”
Myth: Cheap Is Best When It Comes to Investments
“Opting for the cheapest stocks or funds might feel frugal, but it’s a classic case of ‘you get what you pay for,” Lewis said. “Remember, the cheapest route often has the highest hidden costs.”
Quality matters in investments and going for the low-cost option without considering potential growth leaves your portfolio underperforming.
Myth: There’s No Need To Spend on Professional Advice
“Another common mistake is avoiding financial advisors to save on fees, thinking that DIY investing is the most frugal approach,” Lewis said.
But, without expert guidance, individuals might make costly investment mistakes or miss out on tailored strategies that could improve their portfolio’s performance, costing them more in the long run.
Myth: You Should Stick to Simple Investments
According to Lewis, frugality sometimes drives people to oversimplify their investment portfolios, avoiding diversification to cut costs.
“They don’t know that this lack of diversification increases risk, and one bad turn in the market can wipe out your savings,” Lewis said. “A well-diversified portfolio isn’t just smart — it’s essential for long-term security.”
Myth: You Need To Save Up Before Investing
“Some believe that living frugally means building up savings before jumping into the investment game,” Lewis said. “But here’s the kicker: every year you wait to invest in a year of compounding growth you’re missing out on.”
He said the “I’ll invest later” mentality is one of the most expensive misconceptions. While these misconceptions might seem like good money-saving strategies, they often cost you more in the long run.
“Smart investing is about finding the right balance — being frugal where it counts, but not at the expense of your financial future,” Lewis said.
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