young stingy man with piggy bank - be frugal not cheap - financial planning services farmington
  • Posted April 2, 2020

What You Can Do to Be Frugal, Not Cheap

One of the most common reasons people can’t stick to a budget is that they have difficulty with the execution. Many believe that being cheap and skimping on their needs is the best route to take to save money. However, this only leads to poor-quality items being purchased, which often require spending more money to replace them. The following list includes a few ways you can be frugal, not cheap.

Look for Value

Looking at the price rather than an item’s value is often the first thing that leads people down the wrong path. Not that there is anything wrong with finding deals, but you should never sacrifice an important component of the item to save money. This can be mainly seen during the purchase of car insurance. Yes, there are many things you can cut out of the insurance plan that can save you money, but you should never let it go too far to save a buck. Not paying for adequate auto insurance today can have serious consequences if you get into an accident.

Spend Mindfully

Often, a budget may be too complicated or time-consuming for a person to follow. This, however, does not mean you can’t get ahead in your financial life. A great thing to implement in your daily life is the practice of spending mindfully. This means spending only on what you need. That $4 coffee every morning is definitely a want. If you feel like you need coffee every morning, then making a $2 jug is a great way to spend mindfully and still have what you want each morning. Another way to reduce compulsive spending is to carry cash rather than credit or debit cards. This will allow you to literally see the reduction of money as you spend.

Look for Used First

It can be easy to say that you need a new printer, washing machine or laptop and then turn around and spend thousands of dollars on it. This, however, can instantly place someone in debt or reduce their savings significantly. Thus, if you ever find yourself in need of something important, it is highly recommended to first search for a used version. You will be surprised how many people are selling perfectly good and relatively new items for far less than what you would have paid at the store.

Whatever your reason is to start saving money, the route that you should take to get to that goal is the same. Being cheap and living with less-than-stellar possessions is not the way to go. The best approach is to be frugal, and by utilizing the tips above, you can begin making the right decisions to save the right way.

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