6 Frugal Habits Money Experts Disagree On

6 Frugal Habits Money Experts Disagree On

Cindy Lamothe  Mon, July 8, 2024  GOBankingRates

There is no end to all of the financial advice you’ll see on the internet. Money influencers will say one thing — and then you’ll promptly read a rebuttal.

If you’re trying to stay on budget, knowing how to spend wisely should be your priority. That’s why it’s important to weigh all sides of an argument and arrive at your own conclusions.

Here are some of the top frugal habits money experts disagree on.

Skipping the Latte

“Some money experts still swear by practices like ‘skip the latte, buy a home’ when today that couldn’t be further from the truth,” said Dan Kroytor, director of TailoredPay.

“Even if you skip the $6 latte you buy daily every day for 10 years, eventually, that amount of money — for example, $21,900 — will still not be enough for a down payment on a home 10 years from now,” he said. “Especially considering real estate is only getting more expensive.”

Kroytor suggested a balance of being frugal and doing things you enjoy. “The argument is whether it’s more important to be economical and frugal instead of doing things we enjoy,” he explained. “While other experts may disagree, I see no reason why we can’t do both. Know your goals, know what’s realistic and then budget for both.”

Buying in Bulk

“Let’s consider the popular frugal habit of buying in bulk to save money,” said Esther Strauss, co-founder of Step By Step Business. “Many financial experts advocate for this approach, citing the lower per-unit cost of items when purchased in larger quantities.

“However, I take a more nuanced stance on this practice,” she explained. “While buying in bulk can indeed be cost-effective for consumables that you use frequently, it can lead to overspending and waste in other scenarios.”

For example, Strauss said buying perishable items, like fresh produce or dairy, in bulk often results in throwing away unused portions that have spoiled. “This negates the savings and contributes to food waste,” she said.

Similarly, Strauss said that bulk purchases of nonperishable items can lead to overconsumption or stockpiling of goods you don’t really need.

“For families in smaller living spaces, storing large quantities of products can also become an issue, leading to clutter and disorganization,” she noted. “My perspective is influenced by observing consumer behavior and the misallocation of resources that bulk buying sometimes encourages.”

Strauss suggested a more balanced approach. “Instead, I recommend a more tailored approach: buy in bulk selectively, focusing on items that you are certain to use and have the space to store efficiently,” Strauss added. This method, she said, ensures that the benefits of buying in bulk are realized without the accompanying pitfalls.

To Read More:

https://www.yahoo.com/finance/news/6-frugal-habits-money-experts-110054778.html