10 Things Frugal People Never Do and Neither Should You

People might have different opinions and strategies when it comes to frugality, often confusing it with being cheap or miserly. However, the core meaning should more or less stay the same: it’s the art of maximizing value and doing your best to save money, particularly on recurring expenses like food and clothes. Being frugal doesn’t necessarily mean being stingy, which often focuses on the lowest possible price regardless of quality or long-term cost. Instead, frugality is about being prudent and resourceful when it comes to one’s expenses, making conscious decisions to prioritize spending on what truly matters to you while ruthlessly cutting costs on what doesn’t.

You can absolutely call yourself frugal even if you don’t wear your socks to the point that they need stitching and well beyond that. The modern frugal lifestyle isn’t about extreme deprivation or self-flagellation. You also don’t need to eat only what you grow in a backyard garden in order to make more savings in the food department, although that can certainly be a rewarding hobby. The key is to find a balance that works for your life, focusing on smart choices rather than unnecessary hardship. It’s about efficiency and optimization, not just penny-pinching. It’s about freedom, not restriction.

Frugal people do go out to eat at restaurants too, go on holidays, purchase major items like cars and homes, and even splurge on certain desired items from time to time. The critical difference is that they do it wisely and intentionally. A splurge isn’t an impulse buy; it’s a planned-for and budgeted-for expense. They might go out to eat during a “restaurant week” special, use a gift card they earned through a rewards program, or choose a lunch menu over a more expensive dinner. A holiday is booked using travel points or during the off-season. A major purchase is preceded by extensive research and saving, ensuring they get the best possible deal without going into debt.

If you also want to learn how to get smarter in the saving and spending department and build a more secure financial future, it’s often helpful to learn what to *avoid*. By steering clear of common financial pitfalls, you can naturally guide yourself toward better habits. Here are some of the most important things that truly frugal people consistently never do, and for the sake of your financial well-being, you shouldn’t either.

Things frugal people never do:

1. Pay retail

As money experts would tell you, it’s never the recommended option to pay the first price you’re being offered, which is almost always the full retail price. Not if you want to pay the best price for your wallet. Frugal people understand that the retail price includes significant markups for marketing, branding, and profit margins. They simply don’t accept any terms and conditions unless they’ve made a concerted effort to ensure that they found the best deal possible. How? By becoming masters of price comparison. They diligently check all sorts of apps and browser extensions such as Honey or Capital One Shopping, which automatically search for and apply coupon codes at checkout, saving them money with zero effort.

More than that, they are strategic shoppers who take advantage of every clearance sale, end-of-season discount, or post-holiday deal to find the items they need while sticking to their budget. They know that patience pays off. Thrift stores, consignment shops, and garage sales are not to be avoided; they are treasured hunting grounds for high-quality items at a fraction of their original cost. Beyond just saving money, this approach is more sustainable and often yields more unique and durable goods than fast fashion or cheap modern furniture. If you’re lucky, you can find what you want for free, on your local Buy Nothing Facebook groups or sites like Freecycle. Who doesn’t like free stuff, especially when it’s perfectly good?

2. Disregard cash-back and reward apps

If they can save some money or earn a rebate with just one simple click for a purchase they were already planning to make, you can bet your monthly paycheck that frugal people are gonna do it. This isn’t about spending more to earn rewards; it’s about getting paid for your regular spending. And who can blame them, really, when there are tons of things that can be saved with the help of rewards credit cards, cash-back programs such as Rakuten, and shopping apps like Fetch Rewards or Ibotta. It’s essentially free money left on the table if you ignore them.

Whether we’re talking about direct cash rebates, points that can be used on a later occasion to purchase gift cards, or even trading points for money or valuable travel miles, frugalists know the game. They often “stack” deals by, for instance, using a rewards credit card to make a purchase through a cash-back portal like Rakuten from a retailer that has a digital coupon available. This multi-layered approach to saving can turn a small discount into a significant one. It’s time you learn it too, don’t you think?

3. Have a credit card balance

Contrary to what many people might think, carrying a credit card balance from month to month does not do any good to your credit score. In fact, it does the exact opposite. As explained by the Experian credit bureau, “outstanding balances on credit cards can even hurt your credit score, and this effect is most drastic once balances exceed about 30% of a card’s borrowing limit”. This is known as your credit utilization ratio, and lenders watch it closely. A high ratio signals financial risk, making it harder to get approved for future loans like a mortgage or car loan at a favorable interest rate.

Frugal people treat credit cards as a payment tool for convenience and rewards, not as a loan. A high credit score can be reached only if credit utilization is maintained as low as possible, ideally below ten percent. The ideal option would be to aim for a zero balance by making all your due monthly payments for purchases, in full, before the due date. This way, you benefit from the rewards and consumer protections without paying a single cent in interest.

Frugal people know that a balance equals interest, which is essentially throwing money away for the privilege of borrowing. A $2,000 balance on a card with a 20% APR will cost you over $400 in interest per year. If you can get rid of it, why not do it? Or at least give it a try! Create a plan using a method like the debt snowball (paying off smallest balances first) or debt avalanche (paying off highest-interest balances first) and start reclaiming your money.

4. Disregard their health

If your car starts making a strange sound, wouldn’t you want to know why and how to fix it before you end up stranded on the side of the road with a massive repair bill? The same goes for your body, which is your most valuable asset. Don’t ignore it thinking it can run in optimum “parameters” forever. As you age, your body will need more attention and care, therefore annual exams, regular dental check-ups, and preventative screenings might identify or prevent unwanted problems before they become too serious and costly to manage.

Frugalists know that small issues can become huge problems, which translates to huge amounts of money to spend for treatment, hospitalization, expensive prescription drugs, and the like. A $100 dental cleaning is far cheaper than a $2,000 root canal. A simple, consistent exercise routine is a better investment than medications for conditions exacerbated by a sedentary lifestyle. That’s why prevention is always better, and far cheaper, than the cure. This extends to mental health, too; managing stress and seeking support when needed can prevent burnout and costly health complications down the line.

5. Spend their entire paycheck

It might be tempting, on paycheck day, to go on a splurge and buy whatever you want without thinking about money. This phenomenon, known as lifestyle inflation, is a trap that keeps people living paycheck-to-paycheck even as their income rises. After all, you only live once, right? Wrong. YOLO is indeed a nice concept and all, but this doesn’t mean you have to go from riches to rags in a matter of days (or hours). Frugal people never spend their entire paycheck because that would mean they don’t have any money put aside for important situations, emergencies, and future goals. They live on less than they make, creating a crucial buffer.

The smartest financial minds practice the “pay yourself first” principle. Before any other bills are paid, a portion of their income is automatically transferred to savings and investment accounts. If you have no savings, how will you be able to pay for an emergency car repair or a sudden medical treatment without going into debt? Not to mention save for a worry-free retirement, where the power of compound interest can turn modest, consistent savings into a substantial nest egg. If you can’t think of a financial plan by yourself, ask support from a qualified financial adviser, to help you manage your money better and create a roadmap to your goals.

6. Use buy now, pay later

Also known as BNPL, the buy now, pay later services allow you to make several smaller payments for the total cost of a purchase, often instantly at online checkout. As detailed by the Consumer Financial Protection Bureau, the most common version of BNPL is four interest-free biweekly payments. This makes a $200 purchase seem like a harmless $50 payment today.

This might seem like a good deal, especially when you don’t have the entire amount to buy something you really need—or, more often, just want. But in most cases, BNPL users focus on retailers that provide this service and might not really see that there are better deals out there. The service can create a psychological illusion of affordability, encouraging overspending. More than that, it might not be that simple to return certain purchases, and missing a payment can trigger hefty late fees and negative reports to credit bureaus, damaging your financial standing.

Frugalists skip the BNPL services altogether and make purchases within their budget. They understand that if you can’t afford to buy it outright, you can’t afford it. Instead of BNPL, they use an old-fashioned, powerful tool: a sinking fund. They save up for the item over time and then buy it, debt-free. No budget, no purchase!

7. Waste food

According to the Bureau of Labor Statistics, food costs have increased by 6.7% from May 2022 to May 2023. This trend continues, meaning two bags of groceries last year have turned into one bag of groceries, for the same amount of money. Wasting food is like literally throwing cash in the trash can.

Food waste was never really something to be done but even more so nowadays with the prices and inflation soaring as we speak. Frugal people are acutely aware that wasting food can detract one’s family budget by several hundreds of dollars each month. That’s why they pay extra attention to what they buy and eat. They practice “first in, first out” with their pantry, use vegetable scraps to make broth, turn stale bread into croutons or breadcrumbs, and get creative with leftovers. They understand the difference between “sell by” and “use by” dates and don’t discard perfectly good food prematurely.

8. Shop without a list

Speaking of groceries and food waste, there’s nothing more detrimental to one’s wallet than grocery shopping without a list. Supermarkets are masterfully designed environments meant to encourage impulse buys. From the tempting smells from the bakery to the carefully placed candy and magazines at the checkout line, every detail is engineered to make you spend more. Going in without a plan is the perfect scenario to give in to these impulse purchases, something that’s never a good idea, frugal or not.

Frugal people usually make a weekly menu to be able to determine what they need to purchase for the meals they intend to cook. This simple act drastically reduces impulse buys and food waste. What’s more, they don’t stray from the list. Not ever, no matter how appealing those freshly baked cookies seem or the extra jar of Nutella. To bolster their willpower, they never shop hungry and often stick to the perimeter of the store where whole foods are typically located. Your wallet, and your waist, for that matter, will thank you!

Check out these 6 Tips to Save at Least $50 This Week!

9. Throw away something that can be repaired, reused or sold

In our modern disposable culture, it’s easy to toss something at the first sign of trouble. Being frugal doesn’t mean creating your own clothes or shoes from scratch. However, frugal people don’t toss something just because it has a small “glitch” or because they’ve grown tired of it. They see potential where others see trash. They find ways to make use of that item, either by repairing it, repurposing it or selling it to someone who will value it.

A simple repair, like sewing a button, fixing a wobbly chair leg, or watching a YouTube video to replace a small part in an appliance, can save hundreds of dollars. You might have an old phone that doesn’t meet your actual needs, but it could be perfect for someone else, so you can sell it on Facebook Marketplace or Gazelle. If you have all sorts of jars and you don’t know what to do with them, use them for storing dry foods or for meal prep instead of spending money on expensive storage containers. And the list could go on, but I think you got the idea! Before throwing something away, make sure you’ve exhausted all the options of using it. This mindset not only saves money but also fosters creativity and reduces landfill waste.

10. Keep up with the Joneses

The grass always seems greener on the other side, especially when viewed through the curated lens of social media. It’s human nature. But not everything you see is also true. Don’t turn “keeping up with the Joneses” into a life goal. Your neighbor’s brand-new luxury car, your friend’s exotic vacation photos, or a relative’s kitchen renovation can spark envy and a desire to match their lifestyle. They might seem happy and rich and whatnot, but they might also have way more bills to pay, way more credit card balances, and less hours of sleep due to the financial stress of maintaining that appearance.

Still think it’s a good idea? Frugal people understand this is a game you can’t win. There will always be someone with more. It’s not wrong to aspire to be better, earn more, or enjoy nice things. The key difference is motivation. You just need to realize the things that you truly want and need based on your own values, not someone else’s, and then create your own plan to make them happen. True wealth is not about what you show; it’s about what you have in security, freedom, and peace of mind. Frugality is the tool that helps you build that genuine wealth.

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