Obsessed with saving money? You’d think as a financial advisor, I’d tell you “great job!”? Think again. There’s a big difference between saving smart and being downright stingy. What’s wrong with being a cheapskate, you ask? If you’re in university, you might have heard of the “ramen diet,” where students choose to eat instant cup noodles to save money. This unhealthy diet is dangerous to the body in the long run, and the same can be said about practicing a cheap lifestyle. It’s important not to confuse frugality with poor money management skills.
There are more downsides to being cheap, read more to find out:
1) Living the cheap lifestyle deprives you of the finer things in life. You say you’re living below your means, but here’s the question: do you enjoy even just a small part of your hard-earned money? If you don’t, you know you’re a cheapskate. If you keep on delaying your gratification, you will never be able to do anything fun or nice with what you earn. Believe it or not, it’s possible to enjoy the fruits of your labor without overspending. That’s what a well-thought out budget is for.
2) Being cheap may lead to losing even more money in the long run. How so? Because you look at the cost more than the value of the things you buy, and that’s a problem. Just because an item is for sale, it doesn’t mean that it’s a bargain that you have to buy. Other people find themselves purchasing more than what they need just because a certain item is sold for such an unbelievably low price. What if the cheap food you buy is about to expire? What if the cheap shoes you bought is made from cheap material as well? This brings me to my next point:
3) Being cheap may distract you from your long-term goals. When you’ve been living cheap for so long, “saving for the future” is probably your mantra. Stop for a minute and assess your answer. Is it really for the future? What specific goals do you have in mind? Are you aiming to buy a car, a house, or pay-off your student loan? If your answer is vague and you just want to “save money”, being cheap is not the way to go. You might be saving for nothing.
4) Drastic measures lead to epic failure. Slowly but surely is the way to go, because remember, “Slow and steady wins the race.” This principle applies to saving as well. It’s not just about the strength of your will power, it’s about teaching yourself to take baby steps and learn smarter ways to save. It’s all about unlearning the bad habits and making good ones along the way.
5) Finally, life is too short. As you’re probably realizing, being cheap doesn’t exactly make the most out of your life, and we’ve only got ONE! Don’t suffer through old clothes or bad shoes if you actually have the money to buy a new pair.
The Concept of Frugality
Instead of being cheap, there’s a much better mentality that you should embrace. Frugality is the way to go when you want to give more priority to the value of goods rather than the low cost. For a quick example, imagine buying a cheap laptop. You buy it for half the price, but once you start using the laptop for days, it become extremely slow and laggy, and you can barely get any work done. You did manage to buy it for such a cheap price, but if that laptop gives up on you, you’d end up spending for repairs or extra working memory just to work faster. Not only do you end up wasting even more money, but your precious time as well! Wouldn’t it have been better if you have saved for a laptop from a trusted brand? Surely, it would be a great investment knowing that the laptop you buy—even though a bit costly, will serve you efficiently for years to come.
To practice frugality, here are few simple tips that will take a while to learn, but will give you a lifetime of benefits:
• Spend less than you earn. It’s a no-brainer, but keep this in mind! This tip means keeping your credit card use in check, and using it only it in case of emergencies. Hence, it’s vital to have a budget plan every time you receive your paycheck and sticking to it!
• Public transportation. Did you know that you can hit two birds with one stone with this piece of advice? Not only would you manage to save on gas, but you’ll also be able to keep healthy because of the walks to the bus or the train. If you’re going somewhere near, treat it like a walk in the park.
• Plan your meals. Most people aren’t aware that their little food purchases accumulate into a huge amount every month. Avoid high-end coffee shops, bring your own lunch to work, and of course—try not to indulge those little trips to the convenience store! It’s also best to shop in the farmer’s market for healthier and less-costly options.
• Explore debt settlement companies. If you’re already trying to pay off a debt, you can still practice frugality! Debt relief is more than possible, and of course, there’s no better company to give you financial advice but Financial Rescue LLC. One of our services include debt settlement programs where our team of expert negotiators will talk to your creditors to lower your debt. It would be a shame not to give this amazing opportunity a try!
Explore the amazing benefits of being frugal and drop the cheapskate mindset! Make the most of your money (and your life) and learn to save better to avoid experiencing financial stress. For more information about the Financial Rescue LLC debt settlement program, you can call 1-877-97-DEBTS now or visit our website at www.financialrescuellc.com.