Being too cheap can actually hurt you financially in the long term. For some people, this is not a big deal. But, for others, this needs to be fixed if they want to have financial stability in the future.
In third-world countries, such as the Philippines, being cheap has been part of the culture of many people. Many parents have been teaching their children to save money if they want to have a better financial life.
However, how they teach young people to have money, especially when encouraging them to become cheap, can negatively affect them in the long run.
Here are the top reasons why being cheap can hold you back when it comes to improving your life financially.
Being Cheap Can Hurt You Financially
For some people, being cheap is a good thing since they mistake this for being frugal. Yahoo Finance explained that being frugal and cheap are two different things.
Frugal means being financially smart. One of its characteristics is avoidance. In short, frugality means making conscious decisions about your money.
On the other hand, being cheap means saving money even though it neglects important things in life. For example, you are not buying basic necessities just to save money, which can negatively impact your daily life.
Now that you know the difference between being frugal and cheap, here are the top reasons why your cheap habits can hurt you financially:
Relying On Others To Pay for You
Relying on you to pay for you can negatively affect your financial independence, as well as your relationships. This means that if you suddenly decide to start a business, your friends and other acquaintances might not support it, which could lead to business failure.
Avoiding Quality Products Because of High Prices
If you buy cheap products, you already expect them to have less or even no quality at all. Once they no longer work, then you will be forced to buy again, which can drain your wallet.
Being To Cheap To Maintain Car, House
Maintaining your house and car is definitely expensive. However, if you skip their maintenance, then you could be in bigger trouble since fixing their problems, such as plumbing and engine issues, could be more expensive.
Not Spending Money on Professional Development Courses
Cheap people tend to avoid getting professional development courses because of their steep prices. However, if you do not enhance your skill sets, then you could be stuck in the same job with a low salary. This would negatively affect you in the future when you want to transition to a better-paying career.
Avoiding Medical Checkups To Save Money
Another problem with cheap individuals is that they avoid medical checkups, especially if they can endure the health complications they suffer from. Doing this will improve your health and financial status since your medical conditions could worsen, leading to more expensive medical treatments.
Read Also : Are Americans Going Broke? Without a Job Almost 30% at Risk of Running Out of Money in a Week
How To Save Money Without Being Cheap
There are many things you can do to save money without being cheap. Just as mentioned earlier, it would be better to be frugal instead of being a cheapskate.
The Financial Diet provided some healthy financial habits that don't involve being cheap. These tips can help you save money and make your financial life better:
- Never feel guilty to reject invitations that could drain your wallet, especially if they are not that important.
- When purchasing gadgets and other things that are not needed right away, it would be best to wait for sales and shopping discounts.
- Always prioritize your needs before your wants.
- Treat yourself whenever you achieve something at work. This will boost your mood to become more productive, giving you a chance to be promoted or receive a salary increase.
- Never agree to things you can't afford, unless they are really needed.
