Being thrifty is always a good thing. By cutting back on your expenses, you and your family will have more money to spend on essentials. That holiday you’ve always dreamed of? Well, it isn’t going to pay for itself if you keep on spending unnecessarily! Neither is a new car or home.
The idea that frugality has a dark side seems far fetched on the surface. Even if there are a few drawbacks, surely there’s nothing wrong with erring on the side of caution? Actually, there is, and you can find the reasons why underneath.
The following is why you might want to consider striking a healthy balance between spending and saving.
Speculating Leads To Accumulating
One of the biggest myths you might hear is that rich people didn’t accumulate their wealth by spending lavishly. Therefore, being thrifty is an excellent way to build-up extra resources. Unfortunately, the logic is flawed because, in reality, billionaires improve their finances by taking risks. Whether they trade Forex or put money into real estate, wealthy people find ways to boost their earning potential. Frugality encourages you not to follow suit, which is a risky play. After all, investments are accessible for everyone, not only the mega-rich.
Time Is Valuable
You won’t spend a penny more than you need to, and that’s why you’re happy to drive across town to save a couple of bucks. Aside from the potential monetary loss (more on that later), this mentally forces you to view time as an insignificant commodity. And, the relative cost might be more than you’ll ever gain from saving a handful of pennies every week. After all, spending time with family and friends or taking an opportunity to relax and relieve stress are essential as they impact your lifestyle. To enhance your life, you firstly need to treat time with respect.
You Might Not Quantify Everything
Staying on the topic of going out of your way to save money: do you quantify your habits? Thrifty people might not realise the cost of gas outweighs the cents they save from driving to a cheaper store. Even if it isn’t, the expenses involved in being thrifty will make the potential savings lower. When this happens, you’ve got to consider whether it’s worth the effort. Some people do, which is fine, yet it might strike you as counterproductive in the long-term.
Last but not least, you should remember that being frugal is a lifestyle choice. Therefore, it’s like sticking to a strict diet or going to the gym five times a week. After a while, it gets boring and you feel exhausted. Imagine how tired you will feel after months of driving to different establishments to save $50 a month. That doesn’t take mental tiredness into account, either. Sometimes, you want to buy an item or service without having to analyse cost-effectiveness, or feeling guilty.
Undoubtedly, a thrifty attitude has pros that are worth considering. Still, that doesn’t mean you have to apply the same mentality to everything in your life.
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