8 Ways Being a Cheapskate Can Backfire

3. Buying in bulk but never using it. 

Everyone likes a deal. That’s why BJ’s, Costco and other warehouse stores do such brisk business. That strategy makes sense if you’ll consume the item you’re purchasing in bulk before it expires. Take sunblock, for example. You may save money buying a three-pack, but if you don’t use it within a year it loses its efficacy, which means less protection when you’re in the sun. “You may set out to save money buying things in bulk, but if you’re not going through them quickly enough they can go bad. That happens quite often with veggies, sunscreen and spices,” Bodge says.  ​

Do this instead: Resist the temptation to purchase something just because it’s cheaper if you buy a lot of it. If it’s something you go through quickly, it’s worth it. If it will take you several months to consume, you don’t need to buy it in bulk. “The biggest reason people make frugal fails is they tend to forget about how they truly live their lives,” Irwin says. ​

4. Sign up for a store credit card to get a deal.

Percentage off, zero interest and no payments for 12 months are common deals retailers will offer to get you to open a store credit card. But the discount only makes sense if you pay off your balance at the end of the month; otherwise you’ll be on the hook for interest. “Store cards have a high APR,” says Bodge. “You end up really paying for that card if you don’t pay it off every month.” ​

Do this instead: If there’s a chance you won’t be able to pay off your purchase by the end of the month, resist the temptation to open a store credit card, even if it means you can save 20 percent. If you have the cash on hand and can immediately pay the bill, it may be worth it. Like all frugal fails, the best defense is being honest with yourself. ​

5. Letting intro offers become permanent.

Free trials are great, granted that they don’t become permanent subscriptions. Unfortunately the latter tends to happen a lot. 

“People sign up for subscriptions and forget they signed up,” Bodge says. “All of a sudden something rolls into a paid program.” 

Do this instead: You don’t have to sign up for every trial service, but if you do, make sure you cancel it before you begin getting charged. To stay on top of it, Irwin says to set calendar alerts to cancel the subscription before the introductory period ends.

6. DIYing projects and repairs.

YouTube makes it look easy to do everything from fix appliances to building a deck without needing to hire an expensive professional.  That may be true if you have certain skills. Otherwise your DIY efforts may end up costing you more than it’s worth. “I thought I was being so slick fixing my own washer, but I didn’t fix it,” Bodge recalls. “The repair ended up being more expensive than it would have been.” ​

Do this instead: If you don’t have the tools, ability and time to fix it yourself, don’t be stubborn — call in a professional. Your attempt to fix it will cost you money, and if you fail you’ll ultimately need professional help anyway. ​

7. Buying it just because it’s on sale.

We’re all guilty of buying something we don’t need simply because it’s on sale. Who can resist 50 percent off a new sweater or pair of shoes? Even more attractive for frugal shoppers: Buy two, get one free. Before you know it, you’re purchasing two when you didn’t even need one. “With 70 percent off there’s still 30 percent you’re paying for something you don’t need,” Bodge says. ​

Do this instead: Unless it’s something you need, don’t fall into the trap of buying it just because it’s on sale. “Stop and ask yourself: Am I going to use those three things?” Bodge says. If the answer is no, skip the purchase.

8. Forgoing extra insurance because what could go wrong? 

The average lifespan in America is 76.4 years. That’s a lot of time for something to go wrong, yet many overly frugal people neglect to consider buying extra insurance for long-term care or a disability. They figure they’ll remain healthy, but that can be a costly gamble, given the average couple can expect to spend $315,000 to cover medical expenses in retirement and that doesn’t include long-term care, according to Fidelity Investments. Ask yourself whether you have enough money to cover the costs out of pocket, keeping in mind that Medicare doesn’t pay for assisted living facilities or nursing homes for assisted living facilities or nursing homes. “Even though it’s more likely that most of us would need disability or long-term care insurance rather than life insurance, it’s common to under-insure or uninsure ourselves for these life events,” says Irwin. 

Do this instead: Find out what disability or long-term care insurance is available to you through your employer, professional or personal associations you belong to and on the open market. Determine the coverage you think you’ll need, considering everything that could go wrong. And get several quotes from multiple providers before selecting a plan, Irwin says.