by Rhea Wood

Created on: March 19, 2009

Taking care of your money and ensuring it's spent wisely are very important things, especially in today's economic climate. However, where does good ol' common sense end and miserliness on the scale of Ebenezer Scrooge begin? Here are some signs of excessive frugality that may help you decide if your practices are crossing a line:

1. Using every coupon you clip

Coupons are a nearly perfect method of saving money; however, if you feel compelled to use every single coupon you clip, you may be excessively frugal. Using every coupon may even be counter productive and keep you from saving as much money as you would otherwise, because if you're using your coupons to buy things you wouldn't otherwise buy, you're wasting money. Coupons are only worth it if they're used on things you would have bought regardless of the coupon. A compulsion to buy everything you have coupons for, necessary or not, is excessive and potentially financially dangerous.

2. Regifting presents during the holidays

The practice of regifting has become quite popular these days, and news articles have popped up everywhere describing how to 'pull it off' without anyone else realizing. If you regift one or two items, then I'll let it slide. But if you simply refuse to get anything new, instead digging through your closets for anything reasonably functional you can wrap up and pass off as a present, that is a sign of excessive frugality. It is incredibly rude (unless you and the receiver have previously decided to allow regifting), because it shows you don't think well enough of your friends or family to spring for something new- even if the something new is cheap, the effort counts. It doesn't take effort to pull something out of a closet and wrap it in paper.

3. Feeling guilty whenever you spend money

Unless you've splurged thousands of dollars on something you don't need, there's no reason to feel guilty about spending money. Money is there to be spent, at some point; otherwise, what would be its worth? If you feel guilty after paying for everyday neccessities like food, bills, gas, or clothes, that is a sign of excessive frugality. Some things must be paid for, and guilt shouldn't enter into it. If you feel guilty, it could signify that you have deeper issues with money.

4. Counting pennies to the point of absurdity

I am a strong proponent of saving change, as detailed in this list of the best ways to save money. However, even I understand that at some point, it gets a little too obsessive. Are you physically incapable of walking past a penny on the street without picking it up? Do you frequently have enough change in your pockets to give exact change at the cashier? If so, that could be a sign of excessive frugality. Pennies do add up, but not quickly enough to warrent going too far out of your way to get ahold of them. Small change is just that; focus on the larger amounts when it comes to worrying, and save the smaller amounts for pleasant surprises.

If some of these apply to you, that doesn't necessarily mean you are excessively frugal. However, it does mean you may want to rethink your relationship with money, and examine your budget and practices to see if they are logical, or only emotional. Excessive frugality can take some of the joy out of life, and make saving money seem like a chore instead of an excitement.

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