Most experts will tell you that living within your means is ideal. But too much of a good thing can make things worse, especially if you're spending your money to the extreme.
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Anne Martin, director of operations at CreditDonkey, says frugality can help improve your finances, but in some cases it can have a negative impact on your mental health.
“Unfortunately, in an effort to live a more frugal life, many people develop a fear of overspending, which can lead to anxiety about money,” she explained. “At worst, people may become overly reluctant to spend money on even essential items, leading to a decline in their overall quality of life.”
Here are some of the disadvantages of living an overly frugal lifestyle.
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it takes time
“Frugal living takes time and effort,” says Janita Grift, frugal living expert and owner of Frugal Fun Finance. “For example, with price comparison apps like Flipp, you have to spend time finding the best price for each grocery item.”
She pointed out that frugality is worth the effort, but it's easy to go overboard.
“Personally, I try to avoid being too frugal by only comparing prices for staple items like bread and milk,” she says. “Plus, I would compare her to only two grocery stores, not more than three or four.”
Learn: 10 expenses most likely to drain your checking account each month
May sacrifice relationships
Saving money often means making sacrifices, such as setting a strict budget for leisure and dining, says Grift.
friend
“If you're a very frugal person and keep turning down a friend's dinner invitations, it can cause a rift in your relationship,” she explained.
There's nothing wrong with cutting back on non-essential expenses, she says, but it's important to find a balance between going cheap and being frugal. “Personally, I maintain balance by budgeting for eating out and tracking my monthly income so I know how much I can spend on non-essentials.”
family
Jill Lamar, a certified therapist at Thriveworks, said this pattern of extreme financial stress can ultimately affect parenting and marriages.
“Frugality often means saying no, not only to yourself, but also to your partner and children,” she explained.
“Most kids have a hard time understanding why their friends can buy things they can't afford,” she says. “They may pout or throw a tantrum. Children, and many adults, often don't understand the concept of delayed gratification, and when budgeting, you or they may You may have to completely abandon what you wanted, planned, and enjoyed.”
She explained that partners who are used to an upscale lifestyle can bristle when they need to buckle up. For example, buckling up means staying in instead of cruising, and dinner instead of going out.
May cost more in the long run
“I used to buy the cheapest clothes and kitchen tools,” Grift said. “But we stopped doing this because it costs more money in the long run.”
For example, she bought a cheap frying pan for $30, but it kept wearing out and she ended up having to replace it every year.
“If I had spent $100 on a frying pan that would last an average of 10 years, I would have saved $200,” she said.
CoinLedger CEO David Kemmerer agreed that this could end up being costly. “One downside, he says, is that you may have to replace cheap appliances and materials throughout your home. In this case, it's usually best to spend a little more money on quality items that will last.”
Frequently replacing things means frugal living is actually wasting money, he says. Another area where these negative aspects appear is in terms of quality of life.
“Sometimes people live extremely frugal lives and feel like they can't spend money on hobbies, entertainment, vacations, etc.,” he explained. “Above all, I think it's important to have a balance to combat the negative elements of this lifestyle.”
may have the opposite effect
According to Carter Seuthe, CEO of Credit Summit, extreme frugality is often not easy to maintain, and when we inevitably stop being frugal, we often end up living the opposite of frugality.
“It's similar to how people set crazy fitness goals as New Year's resolutions, train hard for weeks, and then end up not training at all for the rest of February,” he explained. . “The goals you set must be realistic, because extreme goals are difficult to maintain, but moderation is much easier to maintain.”
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This article originally appeared on GOBankingRates.com: 4 Downsides to Living a Frugal Lifestyle to Save Money
