9 Exclusive Reasons Frugal People Will Dip Into Their Savings

Frugal people are notorious for stashing their money away — spending only when necessary. But there are certain instances where they will dip into their savings, and usually for good reason.

According to said Kevin Huffman, owner of Kriminil Trading, while the basic principles of frugal living include curbing overspending and being mindful of investing your money on what brings value to your life, he says there can be many times where spending money on experiences, travel or products that improve quality of life is worth spending your savings on. 

“Maybe this trip was needed, or perhaps you really needed to pick up that hobby and invest in the materials for it, or maybe upgrading that cramped apartment to a nicer home would make your life more pleasant,” suggested Huffman.

“These instances can make your life better and happier if you were to spend some money on them.”

Here are more exclusive reasons frugal people will reach into their savings for.

Frugal folks often stash away their hard-earned cash with specific goals in mind, like preparing for emergencies or big milestones in life, said Tom Bruzek, a real estate expert at Selling Land Fast.

“But when those moments come knocking — whether it’s for a new set of wheels or putting a down payment on a dream home — it’s only natural for them to dip into those savings.”

As Bruzek explained, “They’re not just penny pinchers; they’re savvy enough to understand that life throws curveballs, and having a safety net is crucial.

“So, when the unexpected hits, like a sudden medical bill or a leaky roof, they won’t hesitate to tap into those savings to keep their financial ship steady.”

“Frugal folks will and absolutely should dip into their savings to purchase a home,” said David Bakke, a finance expert at DollarSanity.

“Although this is nothing automatic, for the most part buying a home can be one of the best investments you make in your life.”

“As a frugal guy myself, I’ll dip into my savings for anything ‘real’ for my kid,” Bakke explained. “If he needs $500 for prom clothes, that’s probably a ‘no’. He can do without.”

Bakke continued, “If he has a chance to make a college sports team and I need to invest money into that in whatever way, then I’m all in.”

“Frugal people are happy to dip into their savings to purchase high-quality clothing items that last,” said Janita Grift, frugal living expert and owner of Frugal Fun Finance. 

“I’ve spent money I’ve saved on quality blazers, shoes and pants that have lasted for years and have saved me money,” she noted. 

“Instead of needing to go out and replace cheaper items again and again, I’ve spent less money in the long run on quality items.”

“Frugal people are happy to spend money saved up on work equipment,” said Grift. “Some examples include a quality laptop. I’ve invested in more expensive laptops and phones that typically last me 2-3 years more than cheaper models.”

Grift added, “Overall, I save both time and money. I don’t have to replace the cheaper items and waste time visiting the mall or browsing online.”

According to Grift, frugal people know that spending a little bit of money now often saves them a lot more in the long run. 

“For example, spending $300 at the dentist now to get a dental cleaning and checkup can save one thousands of dollars several years down the line if they need to get fillings or a root canal.”

“I’ve seen people who usually pinch every penny suddenly book a dream vacation,” said Rhett Stubbendeck, the CEO and founder of Leverage Planning.

“There’s this one client who saved a lot, even skipped the fancy coffees and brand-name clothes, just to see the Northern Lights. For her, that adventure was worth every saved cent.”

“You might think someone who’s tight with their budget wouldn’t give much away,” said Stubbendeck. 

“But that’s not true. I’ve seen clients who live simply so they can donate more to causes close to their heart or help a family member in need.”

Huffman explains penny-pinchers know that investing in opportunities — such as additional education or professional development that may help grow their careers, or a business venture or real estate opportunity that may pay off substantially in the long run — are worth spending on. 

He said, “Even if it involves spending some of their hard-earned savings upfront, the long-term gains may be substantial.”