Frugal People Often Do 9 Things To Save Money That Actually End Up Costing Them Way More Long-Term
Andrii Iemelianenko | ShutterstockFree shipping is not worth buying additional items just to reach the spending threshold, and yet it feels like a money-saving behavior somehow. All you're really doing is spending more, however.
Unfortunately, some of the habits and cost-saving tricks people stick with to save money actually aren't budget-friendly at all. What is assumed to be the best way to cut costs only defers it in your mind, and down the road, when the credit card bill arrives, it's a whole lot bigger than you thought it would be.
Frugal people think they’re saving money in 9 ways that just cost more long-term:
1. Buying in bulk
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Buying things in bulk seems counterintuitive to begin with because it means someone is spending more money. But because they’re also getting more product, it usually is a good way to save.
This becomes a problem when it comes to anything that has an expiration date. Paper towels will last forever, but perishable food won’t. That might mean having to throw away some of what they spent their hard-earned money on if they don’t use it fast enough.
This habit can be really useful. People just have to put some thought into it to avoid making mistakes.
2. Adding to orders so they can get free shipping
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When you’re buying something online, and that notice pops up to let you know you would get free shipping if you just spent a little bit more, it’s really tempting to go for it. If you’re going to spend money either way, it’s better to spend it on an actual product instead of just the shipping fee, right?
The word “free” grabs everyone’s attention, even if they aren’t sticking to a budget, but it’s not really accurate. Even if a shipping cost is eliminated, it’s not possible for the business to ship things at no charge. They sell items at a higher price to cover the cost of shipping, so there’s no way to get out of paying it.
3. Doing their own repairs
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There’s nothing wrong with a DIY project as long as you actually know what you’re doing. Someone who knows a lot about cars has no reason to think they couldn’t fix one. And some repairs are so minor they can be done after watching a quick video tutorial.
If a repair is more than just a basic fix and it’s not in a person’s area of expertise, it’s best to leave it to the professionals. It’s very easy to make a mistake during a DIY repair that makes the problem worse, or causes another problem altogether. Then they’ll have to call an expert anyway, but it will probably cost even more at that point.
4. Spending less money even when it means lower quality
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The way shoppers think about the relationship between price and quality is really interesting. In a study from 2021, people said they wanted to buy the highest-quality product after testing a few options. But when they were told what the prices were, they chose a cheaper option instead.
It feels like spending less money is the logical thing to do. With purchases that need to last longer, it can actually be a bad idea, though. A less expensive throw blanket seems nice until it ends up with a hole in it after three washes. Then, it will have to be replaced quickly, so it would have been better to spend a little more in the first place.
5. Skipping routine maintenance
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People think of maintenance as something they have done on their cars, and maybe a few household appliances. It’s really the same concept that applies to going to the doctor for a check-up, though.
It’s easy to have an out-of-sight, out-of-mind perspective on this kind of thing. Someone who wants to save their money would naturally think they don’t need to have a mechanic look at their car unless something is actually wrong, just like they wouldn’t go to the doctor when they feel great.
Some people can get away with that, but it’s risky. When issues aren’t caught early, they become much bigger and much more expensive over time. It would have been better to just pay for the maintenance.
6. Buying anything that’s on sale
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Few things are as exciting as finding out your favorite store is having a huge sale. Frugal people stalk sales so that they can get almost everything they buy at a discount, but it might be doing them more harm than good.
According to Nir Eyal, a former lecturer at Stanford’s Graduate School of Business, shopping provides us with a temporary break from our usual state of dissatisfaction. Stores take advantage of this when they put things on sale because it makes items seem like they’re worth more than they actually are.
In other words, what seems like good luck is just a psychological game. Marketers are playing with shoppers’ emotions, so stores make a bigger profit. They aren’t doing everyone some kind of favor by marking prices down, even if it feels like they are.
7. Choosing a cheaper insurance plan with higher fees
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It feels like insurance providers make it purposefully difficult, and maybe even deceptive, to choose the best plan. When someone is trying to save money, they’re probably going to zero in on the monthly premium and base their choice on that.
But there are other costs to consider, too. The plan with the lowest premium might actually have the highest deductible and copays, which would just cancel out the money someone thinks they’re saving.
8. Letting interest accumulate on their debt
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Borrowing money seems like a great idea, but a lot of people don’t understand that it actually costs money to do so. Taking out a loan or paying with a credit card isn’t free. High interest rates can have people paying a lot more than they intended on relatively small purchases.
This is when financial literacy comes in handy. People who pay off their debt quickly or take care of credit card bills on time don’t accrue as much interest. They have to understand that’s necessary, though, and that using a credit card isn’t some kind of magic.
Frugal people usually do have a pretty sound understanding of financial concepts, but there’s always a chance that someone could be trying to save a bit of money without the proper knowledge to make it happen.
9. Continuing to use inefficient appliances
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Not all household appliances are created equal. Shoppers might be wary of one that’s more expensive, but it could cost less over time. Homeowners who choose energy-efficient appliances save about $450 every year.
It’s hard to buy one of these appliances when the original price tag is higher. It’s also hard to replace appliances that you know are costing too much money because of the sticker shock that comes with a new one. But the money someone saves over time makes it a much better deal, even if it doesn’t feel frugal at first.
Mary-Faith Martinez is a writer with a bachelor’s degree in English and Journalism who covers news, psychology, lifestyle, and human interest topics.
