I am not sure if we are extreme cheapskates or not. Compared to most people I know we are! We do spend when we need to. But instead of compulsively spending our money, we prefer to be more intentional with our finances and prioritise our spending. We are cheapskates and proud of it!
As I see it, the main attitudes of a cheapskate are as follows:
They plan ahead
Cheapskates always plan for the future rather than blindly getting by. They have an emergency fund. Cheapskates set themselves savings goals. They put money aside for their future in a pension. You can find out more about retirement savings here.
A monthly budget enables you to take care of all of your bills, put money by for savings and stop over spending. Meal planning can help with your grocery budgeting.
They buy used
You can pretty much buy everything you need second-hand – apart from food, of course! The internet makes the marketplace for second-hand goods enormous. And it’s not just the online giant eBay. You can also try Gumtree, Mercari, Shpock, Dpop and more. Don’t forget Facebook Marketplace, charity shops and boot sales too. Cheapskates buy used whenever possible and save lots of money in the process.
They don’t compare themselves to others
Cheapskates don’t try to keep up with the Joneses! They make the best of all that they have. Remember, the household with all the gadgets and the fancy car is very likely to be living on credit. Many truly wealthy people don’t necessarily earn the most: they just save the best.
They aim to save money on EVERYTHING
Cheapskates always look for the best deal. They get lots of quotes for utilities and services and they haggle. Cheapskates never take the first price they are offered.
They make do and mend
Cheapskates don’t rush out to buy something new if something is a bit worn out or broken. They aim to repair, upcycle and revamp. They make do with what they have. For example, instead of buying a new sofa to replace our old cream one, we spent £14 on a cheery new throw.
They live simply
Cheapskates embrace simple living. They prefer a minimalist lifestyle and reduce clutter. The benefits of simple living go beyond money saving, however. Simple living gives you more time and helps you to reduce stress.
They embrace DIY
There are many things that we could currently get someone else to do that we do ourselves. We don’t employ painters, we wash our own cars and we enjoy gardening. Mr S even repaired the roof (despite being terrified of heights). Cheapskates learn DIY skills.
They question every purchase
Cheapskates don’t make impulse purchases. They question every purchase that they make. Cheapskates look at what they already have or can beg or borrow before buying.
They retain control
By planning and budgeting, by not impulse buying, by saving for the future cheapskates keep control of their finances and their lives. Cheapskates might be cheap but they are often also wealthy. According to the book The Millionaire Next Door: The Surprising Secrets of America’s Wealthy, many millionaires don’t necessarily earn the most but they do plan and budget. The often live frugal lives and prioritise saving over spending to secure their long term financial futures.
We are cheapskates and proud! How about you?
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