As the economy struggles and people look for ways to save money, many turn to old frugality tips that have been passed down for generations. However, some of these tips may not actually save much money, and could instead be wasting time and energy. Redditor u/LtCommanderCarter started a discussion on r/Frugal, asking people to share outdated or incorrect savings hacks. Meanwhile, personal finance expert Rick Orford suggests two main strategies for building a surplus of income: increasing income and decreasing expenses.
One tip that is often shared is to use cash instead of credit cards for everything. While this may seem like a way to control spending, it can actually harm your credit score when it comes time to apply for loans. Using credit cards and paying them off each month can actually build credit and offer rewards.
Another outdated tip is to do everything yourself in order to save money. While it may be true that paying for services like cleaning or lawn care can add up, it’s important to consider the value of your time. Doing everything yourself can take a lot of time and may not be as effective as hiring a professional. It’s important to be frugal with time, as it is a limited resource.
One tip that may surprise some is to use delivery services like Walmart delivery. While some may assume that this would be more expensive, it can actually save money by avoiding impulse purchases and allowing for detailed price comparison. Plus, it saves time and energy.
Similarly, washing dishes by hand may seem like a frugal choice, but using a dishwasher can actually save water and energy. To save even more money, use dishwasher powder instead of tablets, which can provide twice as many loads for the same price.
A useless and often harmful tip is to drive long distances to save a few cents on gas. This may not actually save money once the cost of gas and time is taken into account.
The key takeaway from these frugality tips is to consider the value of time and to focus on strategies that actually save money in the long run. Increasing income through asking for a raise or finding a higher-paying job, along with decreasing expenses by focusing on big-ticket items like housing and transportation, can help build a surplus of income.
Related facts: Research shows that happiness does increase with income up to a certain point, after which it plateaus. For most people, larger incomes are associated with greater happiness, but those who are financially well-off but unhappy may not benefit from more money. Finally, it’s important to focus on quality and time in addition to cost when making financial decisions.
In conclusion, following outdated or incorrect frugality tips can actually do more harm than good. By focusing on time and value, as well as strategies that actually save money in the long run, individuals can build a surplus of income and find financial stability.