It’s easy to get excited by a clearance item or “cheaper” DIY project. But don’t be blinded by what seems like frugality. Here are six times you’re not actually saving money. This was originally published on The Penny Hoarder,...
Every now and then, well-intentioned plans to save money simply fail.
You think you’re following the frugality playbook only to have it backfire. It’s when trying to be cheap ends up being expensive.
It happens to the best of us.
Here are 10 situations where trying to pinch pennies has the potential to end up costing way too much. Avoid these frugality fails.
1. Letting Meal Prep Go to Waste
Preparing meals in advance means you won’t be tempted to grab fast food or order takeout whenever you don’t feel like cooking. But there’s always the potential of wasting a week’s worth of chopped veggies or a tupperware full of chicken breasts, because they’ve gone bad or you just can’t stomach eating the same meal five days in a row.
That’s just tossing money in the garbage.
The same thing can happen when you try to be thrifty by buying in bulk — but end up throwing out half of what you bought because it’s too much.
The remedy: Meal prep a few days out rather than for an entire week. Store food properly and freeze what you won’t eat soon. Make use of sauces and spices to add variety to staples like chicken and rice.
2. Spending a Fortune on Dinner Ingredients
Cooking at home is usually a much cheaper option than eating out at restaurants — except, of course, when you go overboard buying gourmet groceries and getting 10 unique ingredients for each recipe.
When you total everything up, you realize you could afford to dine out after all.
The remedy: Choose recipes that include ingredients you already have at home or that are inexpensive. If you need to buy new ingredients, make sure you can use them in multiple recipes.
3. Buying Stuff Just Because It’s On Sale
Sometimes the thrill of saving money can cloud your judgment. You load up your grocery cart with BOGO items, grab clothes off the clearance rack and buy Groupon deals — without much thought to whether you actually need or want it all.
You can easily end up blowing your budget chasing deals and discounts.
The remedy: Before you buy something that’s on sale, ask yourself if it’s something you really want or if you’re just buying it because of the deal. If the sales price was the regular price and there was no discount, would you still want to buy it? Do you have a plan to actually use what you’re buying? Is it in your budget? It’s okay to pass up a good deal sometimes.
4. Driving All Over to Find the Lowest Price on Gas
Sure, you can save 10 cents per gallon filling up your tank at a gas station on the other side of town, but you’re going to waste gas getting there and back.
Even if you stick to the gas stations close to home, you’ll waste fuel driving up the road to what you think is the cheaper place, only to find out they’re charging more now.
The remedy: Use a gas-price app, like GasBuddy, to find the cheapest prices for fuel along your normal driving route. Take advantage of fuel rewards programs and discounted gift cards as other ways to save money on gas.
5. Going Carless Only to Spend More Money Getting Around
Car payments, insurance, gas, maintenance… it all adds up. Ditching your vehicle seems like it could help you save.
However, if you’re hailing Uber every day and renting a car every other weekend, those costs might be even more expensive.
The remedy: Before you go carless, make a plan for how you’ll get around and what the costs will be. Research public transportation options in your area. Consider carpooling or biking to work. If giving up your car is not the best option for you, you can still save money by swapping your current vehicle for one that’s more energy efficient or that comes with a lower car note.
FROM THE SAVE MONEY FORUM
6. Buying a Used Car Without Doing Due Diligence
You’ll lose money in depreciation just by driving a new car off the lot. That’s what we’re always told.
Buying a used car isn’t much better, though, if you drive away only to have your check engine light come on.
Buying used means your vehicle may not be in optimal condition. And if you buy from a shady seller and don’t take the time to really examine the car and dig into its history, you may end up with a money pit.
The remedy: When you buy a used car, where you shop matters. You can find certified pre-owned vehicles at legit dealerships that have been thoroughly inspected and may come with some type of warranty coverage. Check the Carfax report for accident history and past maintenance information. Conduct a thorough test drive and try to get your mechanic to inspect the car, if possible.
7. Signing Up for Free Trials and Forgetting to Cancel
It makes sense for a frugal person to take advantage of free trial offerings. And for the first week or 30 days, everything is great.
The problem arises when you forget to cancel your free trials before the free period is over and you end up being charged for stuff you never intended to pay for.
The remedy: If you can cancel a free trial immediately and still take advantage of the service until the trial period ends, do that. If not, set calendar alerts to remind yourself to cancel before you get charged. Signing up for a free trial with a virtual credit card is another way to avoid getting looped into auto pay after a free trial ends.
8. Losing Time and Money on DIY Projects
Say you drop $20 on equipment and supplies at a craft store to make some home decor piece you could get at HomeGoods for $30.
You think you’re saving money — except your completed project turns out nothing like what you intended. It goes straight into the trash.
On top of that, you’ve wasted hours trying to do-it-yourself, and we all know time is money.
The remedy: Don’t overspend on supplies, and choose projects that match your skill set.
9. Replacing Cable With a Bunch of Subscription Services
You’re sick of paying over $100 for cable so you decide to finally cut the cord. But in its place, you sign up for a bunch of subscription services — Netflix, Hulu, Disney+, HBO Now, Showtime, Sling TV and more — until what you pay for television and movies exceeds your old cable bill.
The remedy: Ask yourself what content really matters to you and limit yourself to a couple streaming services rather than getting caught up subscribing to the entire gamut.
10. Getting Rewards Credit Cards and Going into Debt
Rewards credit cards lure you in with perks like cash back or points to use toward future purchases. Store cards hook you with the promise to save a percentage off each time you swipe.
But what you pay back in interest, if you carry a balance on those cards, could easily negate the rewards and savings.
The remedy: Check out these questions to ask yourself before getting a new credit card for the rewards. If you do get a new card, treat it as you would treat cash and only charge what you can afford to pay off.
Reporting from contributor Lyndsee Simpson was included in this article. Nicole Dow is a senior writer at The Penny Hoarder.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.