I came across this article below that I really thought was smart, especially in light of the madness of "extreme couponing" that we are seeing lately. These are 5 great things to consider, and I really can identify with items 4 & 5. While I still coupon and enjoy doing so, I only shop one store (my time and fuel are worth something to me) and I no longer purchase the multitude of processed crapola that is offered so frequently on coupons. At one point a few years ago, I joked with a friend that I thought couponing was making me fat! I mean, come on, those M&M's and Pop-Tarts were nearly free! How could I NOT purchase them?!! Now, I make more of an effort to focus my grocery budget on fresh foods. For example, I like to participate in the Bountiful Baskets produce co-op and do more shopping at our local health food market.
Enjoy the read from Credit Karma's guest blogger from Money Crashers below!
5 Ways Being Frugal Can Cost You More Money Than You Save
**Today’s guest post is contributed by Money Crashers.**
The past few months, I’ve really focused on being frugal. I’ve found ways to save lots of money at the grocery store, I’ve honed in on ways to save on monthly bills, and I’ve even discovered ways to save on home improvement projects.
But I’ve also learned that in some instances, being too frugal can actually cost you money in the end. Frugality is truly an art, and if you dive in head first, you might find yourself spending more money than you save.
Here are five instances where trying to save money actually costs you.
1. Skipping Maintenance to Save a Few Bucks
There are plenty of things in your life that need to receive regular maintenance to work properly, including your car, your home computer, and home appliances. This maintenance isn’t always free, but it is always necessary.
Don’t blow off scheduled maintenance checks for your car, or not update the anti-virus software on your computer just to save some money. A few dollars spent now can go a long way in ensuring you get the most life out of all of these items – and you likely won’t have to pay for costly repairs later on.
2. Buying Something Because It’s on Sale
Just because you have a coupon for something doesn’t mean you’ll save money by purchasing it. Here’s a perfect example: If you find a deal where you can get 50% off on clothes, yet you don’t have an immediate need for that clothing, then what are you saving? In essence, you are doing nothing more than spending money unnecessarily.
You should certainly shop for deals whenever you can, but before you pull the trigger on anything, no matter how great the price may be, ask yourself one quick question – do I really need this item? Watch out for the tempting group buying sites for daily deals and coupons and make sure they don’t end up costing you money.
3. Doing It Yourself – When You Don’t Know How
Coming from someone who has recently become a DIY fanatic, I can tell you one very important lesson that I have learned: Know your limitations. You can definitely save quite a bit of money by tackling home improvements and repairs yourself, but if you have no previous experience whatsoever working with, say roofing, then you may want to shy away from hammering shingles onto your house, and call in a professional.
Getting in over your head when it comes to do-it-yourself home improvement projects can most definitely cost you in the long run. So do yourself a favor – park your ego at the door and objectively assess any DIY project before taking it on.
4. Saving Money, but Wasting Time
There’s one very important fact to keep in mind – time is just as valuable as money. If you have to spend ten hours a week combing through the newspaper in order to find coupons that will save you ten bucks at the grocery store, you can probably find a better use for those ten hours (i.e. one of the downsides ofextreme couponing).
Additionally, if you have to drive twenty miles to save five bucks on a purchase, the journey isn’t cost-effective especially with gas prices rising. In short, be sensible about your frugality and don’t be blinded by the “save a buck at all costs” mentality.
5. Buying Processed Foods
The food you put in your body obviously has a huge overall effect on your personal health. Keep this in mind when you’re thinking about stocking up on processed, pre-packaged foods simply because they have an attractive price. Spending a few extra dollars on fresh foods is well worth the cost. You’ll be healthier, which in turn will cut down on your overall medical expenses – something that we could all use.
Final Thoughts
The bottom line? Don’t sacrifice quality in any area of your life in an attempt to save a few bucks. Know when it makes sense to spend the extra dollar, and in the long run, you’ll be sure to live a frugal, and full, life.
What other areas can you think of where you cost yourself more by trying to save a buck? Share your thoughts in the comments below!
David Bakke is a columnist for Money Crashers, one of the top personal finance blogs that covers a variety of different financial topics like money management, saving for retirement, shopping smart, and making wise decisions in life.
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