Monday, 20 January 2020

Frugal Living Mistakes That You Should Avoid

Frugal Living Mistakes

In this article I'm going to share 5 different money-saving habits that can end up really hurting you, sometimes when we make a financial decision we can be more short-sighted rather than thinking about 20 or 30 or 40 years down the road. If you're making these mistake you want to take this into consideration and hopefully change some of these habits in the future.

Let Get Started

1. Sacrificing Hobbies

That leads me into number one here which is a mistake that so many people are making when going about this financial journey of trying to better themselves financially by building wealth and saving money and the problem is when people are sacrificing certain hobbies or passions in their life so that they can save money.

The truth is, you're not going to be bringing money to the grave with you. I certainly not going to be doing that and you could be 65 years old on your way to your retirement party to kick off your retirement and get hit by a bus, now, I don't want that to sound really, really harsh, but it's the truth we could die any day so it's important to make sure that you are enjoying life and not just squirreling all of this money away for something in the future that you just hope that you can reach because the truth is, I don't know if I want to make it to age 65 or 70 or 75 and I don't know what the quality of my life is going to be like at that point.

Make sure that you are enjoying things in your life not even while living frugally. I think when people are cutting entertainment costs so much at the point where maybe they love movie and they say oh, I don't know if I can spend $8, just spend the money on it, just make sure that's factored into your budget if you're not keeping a budget that's what's really going to hurt you in the long run.

You can read the budget article down below
  1. How To Start Budgeting Plan When You Have No Money
  2. How To Manage Your Money - 50 20 30 Budget Rule
  3. Budgeting for Beginners: Cash Envelope System | Weekly Paycheck
  4. How To Budget Your Money (Best Strategy)

2. Too Many Sales

Being attracted to sales too much to the point where you're spending money that you would not have otherwise spent, and it's on something that maybe you don't even really like. There's a reason why stores put on sales in the first place, it's to get you into the door, that gets you in the door and you end up spending a lot more money than you didn't really think that you were going to spend in the first place.

On top of this, I think a real mistake that people make is when they go into a store and maybe they have coupons, maybe there are some really good sales, for example, on cucumbers for $0.25 a piece that used to be $1, they don't even like cucumber but it's such a good deal that they have to buy it and then they put them in their fridge, they remember they don't really like cucumbers and then two weeks later they open up the fridge they wonder what that really bad smell is and it's those rotten cucumbers in the back of the fridge that they just don't like.

Make sure that when you're buying foods you're buying things that you're actually going to eat and not just buying things that are on sale that look like good deals but are just something that you can throw out in a couple weeks.

3. Too Quickly

Trying to save money too quickly going from living this life where you have many things and many different expenses to absolutely nothing, and trying to live frugally very quickly. I think it's something that you want to gradually maybe ramp up over time and start to cut some certain costs, but if you absolutely just cut all of your entertainment costs, you cut all of your cost, you downsize into a smaller apartment, you get rid of your car, you do all these things to live frugally, and then all of a sudden you have nothing left. And you're living in a shack, that might not be the best option.

Find a way to gradually lower your costs, find a way to gradually bring your total cost of living down as much as possible without sacrificing the quality of your life.

4. Disregarding Health

This is when people make poor health decisions long terms because they want to save somebody in the short term. We could think about food choices when people are literally eating rice and beans every day and not eating the proper nutrients that they need to survive and live a long healthy life and they're not getting their vitamins and they decide, I'm not going to buy those vegetables or that fruit because apples are a little bit more expensive than a loaf of bread. You can end up cutting out some really essential nutrients or some protein that you might need to live a long healthy life.

If you're trying to save money in the short run because you want to retire at age 55 instead of age 65, you might not even make it that far if you're eating absolutely terrible food. This is just something that you really do want to think about when thinking about health.

Make sure that you're making those decisions for your dental health, make sure that you are using mouthwash now so that you can have fewer cavities in the future there are just some basics on that, that a lot of people neglect because they're trying to save $4 on mouthwash but they end up spending $400 at the dentist because they don't use the mouthwash.

5. Opportunity Cost

Thinking about the opportunity cost of every decision that you make. Instead of just think about the actual dollar amount of certain tasks and things throughout your life, think more about the time as well, and make sure you're factoring that time in. Because I've seen people who will walk 8 miles to save $7 on an uber trip. There's a point where it's better to pay that money and have an extra 4 hours in your day instead of having to walk 8 miles through that rain for something that you could have just spent a little bit of money on.

Don't be too hesitant to spend money on some little things that maybe is going to cost you a little bit of money, but if it's saving you a lot of time then that's very much worth it to myself because time as I said earlier, is one of the greatest assets that we have in our lives, it is a finite resource we don't get a time back we can get money back but we can't get our time back. So make sure you're factoring in both of those when making those decisions your lifetime.

I hope you got some value from this article

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