9 Ways Being Frugal Can Cost You Money

It pays to spend less whenever you can, right? Well, not necessarily. There are some cases where the “less is more” principle doesn’t work.

Being cheap cuts costs for the moment, but it may cause you to incur additional expenses in the long run. That ends up being the antithesis of frugality.

Here are a few instances where thriftiness can backfire.

1. Couponing

As an ex-couponer, I know all about this. I remember sitting at the dining room table every Sunday afternoon cutting away at the weekly circulars and matching the coupons from my ridiculously large collection to the sale items.

I saved a ton of money, but I also ended up with a massive stockpile of items for which I had no real use.

The moment of truth came when I headed to my stockpile, only to realize I had accumulated 18 sticks of deodorant and six jars of mayonnaise, the latter of which I likely wouldn’t use before the best-by date. That’s not to mention the hours of my life spent clipping away that I could have used to generate additional income.

The choice is yours, but I suggest you conduct a cost-benefit analysis to determine whether the hours spent on couponing are worth it.

2. Adopting a deprivation budget

When you create a budget to curb spending and reach financial goals, it may be tempting to jot down the leanest figures imaginable. But what will you accomplish if you severely underestimate your expenditures?

I understand cutting costs, but being unrealistic means your spending plan will fail. For example, if you typically spend $600 at the grocery store for a family of four, what sense does it make to shave that number all the way down to $200? The answer: none at all.

Need help learning to manage your money? Check out “4 Rules for Creating a Painless Budget.”

3. Cutting corners on insurance

Are you riding a wave of luck when it comes to your insurance policies? Do you carry the bare minimum level of auto coverage your state requires? Or, perhaps you’ve signed up for mediocre health, dental, homeowners or life insurance policies.

Or, maybe you’ve raised your deductibles even though you don’t have enough money in the bank to cover the costs before insurance kicks in.

You may have done these things to keep premiums low. But if an emergency arises, your wallet and bank account could be turned upside down by out-of-pocket costs and exorbitant deductibles.

4. Ignoring routine medical visits

Ever heard the saying “An ounce of prevention is worth a pound of cure”? Keep that in mind the next time you’re tempted to skip a visit to the doctor or dentist. Even if you dread doling out cash for co-pays or meeting deductibles, it’s worth it to stay on top of things.

Just think about those individuals with debilitating medical conditions who could have detected them earlier — when they were more treatable — with routine blood work. Others ignore dental visits for so long that they now must live with gum disease and costly deep cleanings for the rest of their lives.

5. Buying inferior big-ticket items

If frugality is deeply embedded in your genetic makeup, it’s no surprise that big-ticket items with low sticker prices may be enticing. However, cheaper is not always better, especially in this situation.

A perfect example is the purchase of a cheap car. It may look good, smell great and come with a bargain-basement price tag, but snagging this “good deal” could leave you with a clunker.

Car leases can work the same way. You cut costs for the life of the agreement, but end up where you started when it’s all said and done.

For more, check out “7 Steps to Buying a Reliable Used Car.”

6. Avoiding car maintenance

It’s imperative that you schedule routine maintenance to keep your car running. Catching problems now when they are small will keep you from paying major repair costs later.

Avoiding the mechanic may temporarily shelter your wallet, but could even end up putting your life at risk on the road.

7. Cutting back on nutritious food

You may be tempted to reduce the presence of healthy, costlier foods like fresh produce in your family meals. But replacing nutritious food with less expensive fillers or processed foods can be bad for both your waistline and overall health.

For more tips to help you avoid wasting money at the grocery store, check out “19 Things You Should Never Buy at a Grocery Store.”

8. Frequenting deal websites

These are what I like to call the “forbidden fruit.” When websites like Groupon and LivingSocial burst onto the online scene, Americans were in a frenzy.

I’m no exception. I got sucked in and vowed to myself that I’d buy just this one thing. But it turned into a lot of fine dining vouchers, spa treatments and weekend excursions, some of which I didn’t even use.

9. Shopping at warehouse clubs

This is another area where doing it properly can produce major savings. These businesses pride themselves on selling you massive quantities of a particular item at a discounted rate.

But what happens if you can’t consume it all before the expiration date? And let’s not forget about the membership fees and the storage space you will need at home.

Plus, have you compared the per-unit price? Are you sure you’re always getting a better deal?

For more advice on how to shop efficiently at these stores, check out “19 Purchases You Should Avoid at Warehouse Clubs.”

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
Small Splurges That Make It Feel Like You’re Living Large
Small Splurges That Make It Feel Like You’re Living Large

Cutting costs is the shortest path to financial freedom. However, there are times when a little spending can produce big returns.

10 Foods That Can Keep for Years
10 Foods That Can Keep for Years

These are some of the longest-lasting groceries you can buy.

The 2 Biggest Retirement Fears of Baby Boomers
The 2 Biggest Retirement Fears of Baby Boomers

Boomers have a lot of worries as they age, but two stand out.

10 Products That Will Help You Save Money
10 Products That Will Help You Save Money

Sometimes, spending a little cash right now can save you a lot of money down the road.

5 Reasons You Should Work for as Long as You Live
5 Reasons You Should Work for as Long as You Live

These benefits might make you think twice about retirement.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

Am I Eligible for My Mother’s Social Security Benefit?
Am I Eligible for My Mother’s Social Security Benefit?

Can an adult daughter tap into her late mother’s benefit?

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

This Surprise Factor Can Raise Your Risk of Dementia
This Surprise Factor Can Raise Your Risk of Dementia

Nearly half of U.S. residents may face this threat.

Organize Your Home With These 10 Thrift Store Finds
Organize Your Home With These 10 Thrift Store Finds

Resolve to be clutter-free in 2021 with these secondhand purchases.

11 Laws You Could Be Breaking Without Knowing It
11 Laws You Could Be Breaking Without Knowing It

Seriously? Fibbing about the weather is a crime? This and other little-known legal traps await the unwary.

Is This Treatable Condition Causing Your High Blood Pressure?
Is This Treatable Condition Causing Your High Blood Pressure?

Researchers say too many doctors are overlooking this potential source of hypertension.

13 Things Seniors Can Get for Free — or Almost Free
13 Things Seniors Can Get for Free — or Almost Free

There are many ways to get cheap or free services and goods after reaching a certain age.

These Are the 3 Best Used Cars You Can Buy
These Are the 3 Best Used Cars You Can Buy

These vehicles boast reliability, safety and long-lasting value.

Internet Providers Can’t Charge You for This Anymore
Internet Providers Can’t Charge You for This Anymore

Starting this month, your ISP no longer can bill you for this fee.

21 Items to Cut From Your Budget That You Won’t Even Miss
21 Items to Cut From Your Budget That You Won’t Even Miss

Start off the new year by implementing these small-but-smart savings strategies. They’ll soon add up.

15 Painless Ways You Can Cut Costs in 2021
15 Painless Ways You Can Cut Costs in 2021

Follow these tips to save, so you’ll have money for things that really matter.

9 Small Expenses That Are Bleeding Your Budget Dry
9 Small Expenses That Are Bleeding Your Budget Dry

Keep more of future paychecks by eliminating these budget-busting unnecessary expenses.

11 Huge Retirement Costs That Are Often Overlooked
11 Huge Retirement Costs That Are Often Overlooked

Does your retirement budget account for all of these costs?

7 Tricks to Cleaning Your Bathroom Faster
7 Tricks to Cleaning Your Bathroom Faster

These tips can get your bathroom sparkling with little time and no elbow grease.

20 Amazon Purchases We Loved in 2020
20 Amazon Purchases We Loved in 2020

These practical products made everyday life a little easier last year — and will do so in the new year, too.

7 Bank Accounts With Extra Perks for Seniors
7 Bank Accounts With Extra Perks for Seniors

These accounts offer exclusive discounts and other perks — including interest — to older customers.

10 Times You’re Right to Be a Cheapskate
10 Times You’re Right to Be a Cheapskate

Clever shoppers can save money without sacrificing quality. Here is how to do it.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.