Cheapskates often get a bad rap. If you look closely at how they live, you’ll find many wise financial principles. Here are 12 things cheapskates never do that you should avoid as well.
We all have bad days, and we all have times to celebrate. A cheapskate spends judiciously, not emotionally. Practicing the former is the road to saving money. The latter leads to wasting money, and often debt.
Paying Full Retail
A frugal person understands that full price is not for them. Instead, they look for sales, use coupons, or some other way to save on their purchases. We’re wise to do similar.
Ignoring Their Credit Score
A cheapskate knows that when they have to borrow money, they want the best rate possible. As such they watch their credit score to ensure they’re doing what’s needed to keep it high.
If you plan on borrowing money in the future, or perform other financial transactions, ignoring your credit score isn’t wise.
Carrying A Credit Card Balance
Frugality and high-interest debt? That’s an oxymoron. Cheapskates pay their cards in full every month, if they use a card. They also take advantage of rewards credit cards to get something back for what they do have to spend.
Throwing Away Items They Can Use
Cheapskates love to reuse items to stretch their budget. Sure, it can go too far. However, they always look for other ways they can reuse an item before tossing it.
If they can’t, they determine if they can sell the item and reinvest the proceeds to replace it.
Staying Away From Investing
Frugal people know the importance of saving for the future and they don’t run from it. Furthermore, they look for ways to do it as cheap as possible.
If you want to grow a sizable portfolio, you’re wise to start now and keep management costs at a minimum.
Cheapskates and cable? That’s an anathema. True cheapskates use an over-the-air antenna to get their local networks, get movies from the library, and use free streaming services to watch TV shows and movies.
You can do similar and save upwards of $200 a month.
Buying Bottled Water
Bottled water is convenient, but a frugal person sees it as unnecessary. Instead, they purchase a Brita Water Filter and a reusable water bottle.
The average American spends $100 a year on bottled water. That’s $100 a cheapskate can put towards other needs.
Spoiling Their Children
Children are a gift. Cheapskates don’t shower them with gifts as that adds needless expense. And, they look for ways to involve them in doing chores around the house. With an allowance, they help their children learn to see the value of a dollar.
We should follow suit to help prepare children for their future.
Upgrading Their Phone Annually
It’s not very frugal to upgrade to the latest iPhone annually. A cheapskate uses their phone until it dies, then replaces it with a modest choice.
While the latest technology can be fun, we should emulate this to keep our budget in check.
Buying Something Just Because it’s on Sale
Purchasing an item that’s on sale is a terrific way to save money. However, a cheapskate never buys an item just because it’s on sale. There’s a difference as buying it because it’s on sale can lead to wasteful spending.
Don’t give into the marketing ploys and you’ll be richer.
Skipping Free Events
True frugality takes advantage of free events. Going to the movie is fun, but it’s expensive, and best done sparingly. A cheapskate looks for free entertainment like outdoor concerts, festivals, and more.
You can do similar to stretch your entertainment budget and cut costs.
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