by Lynn Edwards

Created on: December 10, 2011   Last Updated: May 01, 2012

With the economy in such a sorry state, more and more people are taking pride in declaring themselves cheapskates.  Of course, as it is with any human characteristic, when taken to extremes, excessive frugality has its downside.

For example, waiting for an article of clothing that appeals to you to go on sale before purchasing it can result in not getting what you desire.  Though continuing to buy from the sales racks exclusively will save you money, doing so will hardly keep you fashionable.  Initially, this might not seem important, but over time, you could develop the attitude that you don’t deserve the best, thereby eroding your self esteem.

Even if your clothes are clean and in good repair, there are people who only see whether clothes are in fashion or not.  Wearing a well cut blazer that carried a high price tag ten years ago might appeal to your sense of frugality more than shelling out a hefty sum for a newer version of the same garment, but you risk making a damaging impression.  By seeming out of touch with the current trends, you could be perceived as old fashioned or uncaring about your appearance.  It could cost you business, a sale or a job offer.

Ceasing to pay inflated prices for food and drink at restaurants and bars will save a lot of cash.  It will also result in a greatly diminished social life.  No long patronizing such establishments also damages the livelihood of the people who work in them, keeping the economy down. 

Although there are plenty of things to do on little or no money, such activities are usually shared among people who care about each other.  If you haven’t acquired such a group before you instituted your draconian budget, you could end up alone a lot when you’re unable or unwilling to spend money on having a good time.

Saving as much money on your utility bill as you can, by keeping the heat and air conditioning off for as long as possible, is not only good for your pocketbook, but also the planet.  Yet, chilly fingers and sweaty sheets that result in a trip to the doctor or pharmacy can lose you more than you’ve gained.

Then, there’s the trap of buying items based solely on what they cost.  There are brands whose higher prices reflect superior quality.  Spending more money now for a thing that will perform better and last longer than its competition is a financial wisdom that very thrifty people often ignore. 

Unfortunately, the habit of extreme frugality can develop into miserliness.  Saving money at the expense of one’s comfort can affect one’s spirit, sapping generosity out of one’s life.  So, as you exult in what a good deal you’ve gotten, or revel in how much money you’ve saved, it’s wise to keep in mind that saving money, like everything else, comes at a cost.

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