9 Ways Being a Cheapskate Can Backfire

Being frugal isn’t always a bargain. Learn these simple steps to avoid wasting your dollars when you’re penny-pinching.

Donna Fuscaldo and Deirdre Shesgreen,

Updated September 16, 2025

AARP

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Published December 28, 2022

/ Updated September 16, 2025

a woman falters while roller skating on piggy bank shaped skates

Jon Krause

Finding ways to save is top of mind for many older adults, especially retirees living on fixed incomes at a time of elevated inflation, higher interest rates and tariff-spurred price increases. But sometimes the quest to be thrifty can cost you more money than it saves.

“When you’re dipping your toes into trying to save money, there’s a natural tendency to throw yourself into the deep end and go a little too far,” says Emily Irwin, head of advice relations at Wells Fargo Bank. “Initially, you may have some frugal fails.”

Frugal slipups are common, particularly among people just starting to embrace a savings mindset, but they are avoidable. Here are nine costly mistakes that penny pinchers make and tips to avoid them.

1. Cooking more often but letting food go to waste

Food is a big part of household budgets, so finding ways to save in this category makes sense. A time-tested strategy is to cook more at home. Instead of going out to dinner or ordering takeout, some people commit to cooking seven days a week, three meals a day, hitting the grocery store to stock up on everything they need. But the plan can go awry if the food — cooked or uncooked — eventually has to be tossed in the trash. Unfortunately, it happens often: The average U.S. household wastes 6.2 cups of food per week, or 322 cups per year, according to 2023 research by MITRE and Gallup. Suddenly, the money you thought you were saving is wasted.

Do this instead: “Know thyself” couldn’t be truer when trying to save money by cooking. “Take a moment when you’re shopping and ask yourself: Can I really commit to this?” says Trae Bodge, founder of shopping advice website TrueTrae.com. “You have to be realistic. Some of us are more realistic than others.”

2. Cutting maintenance corners

Skipping your dental cleaning or oil change may seem like a way to save a few bucks, but cutting corners could cost you a lot more down the road. That’s especially true if you have to replace a big-ticket item, for example, or need an expensive medical procedure because you skipped routine doctor’s appointments.

Do this instead: “Make sure you are doing everything to proactively extend the life” of the product or yourself, Irwin says. That means staying on top of maintenance appointments for both your health and your costly things. “If you live in the northern part of the country, make sure the furnace gets an annual checkup, and if you live in the Southern states, make sure your AC unit is checked out,” she says.

3. Overbuying perishables

Everyone likes a deal. That’s why BJ’s, Costco and other warehouse stores do such brisk business. Buying in bulk makes sense if you’ll consume the item before it expires. Take sunblock, for example. You may save money buying a three-pack, but most sunscreens start to lose efficacy after three years, 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. Think about whether you’ll actually use it before it expires, Irwin suggests.

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

An introductory discount, zero-interest financing or no payments for 12 months are common deals retailers will offer to try to persuade you to open a store credit card. But opening the card only makes sense if you’ll pay off the balance on time — otherwise, you’ll be on the hook for interest, and “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 the bill by the end of the billing cycle, pass on the store credit card.

5. Letting introductory offers for media subscriptions become permanent

Free trials for streaming services and other subscriptions are great — as long as you remember to cancel them before they expire. “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: Irwin suggests setting calendar alerts to cancel subscriptions before the introductory period ends.

6. DIYing complex home renovations and repairs

YouTube makes it look easy to do everything from fixing appliances to building a deck without needing to hire a professional. That may be true if you have specific skills, but not so much for DIY novices. “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 something yourself, don’t be stubborn — call in a professional. Taking on DIY work that you’re not equipped for can lead to damage and potentially costly repairs by a professional.

7. Buying a product 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 deals. But before you know it, you’re purchasing things you don’t need or want.

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. Also, consider using a price tracker, like CamelCamelCamel, Honey or Slickdeals, to make sure a sale is truly a good deal, says Jim Wang, founder of personal finance resource WalletHacks.com. He says some retailers advertise items as “on sale” when they’re just the regular price or only slightly marked down.

8. Buying a cheap or used item that might not last

If you buy an ancient used car instead of a new one to save money, you may spend a ton on repairs. The same goes for other items, from cheap winter boots to flimsy umbrellas, Wang says. “Cars are famous for this, because we know that a clunker of a car might be cheap to buy but expensive to fix and maintain,” he says. “With boots and similar items, consider how long it’ll last before you need to replace it.”

Do this instead: Think about the total cost of ownership on a purchase, not just the purchase price, Wang says. “A cheap pair of boots might last a few seasons, while a more expensive, higher quality pair may last you a decade,” he says. If a product includes a lifetime warranty, that’s usually a sign of good quality, Wang adds.

9. Chasing credit card rewards

Earning rewards for credit card purchases is a great way to get something back for items you have to buy, says Andrea Woroch, a consumer savings adviser in Bakersfield, California. But some people can get blinded by credit card rewards, to the point where they buy things they don’t need just to earn cash back, points or miles. This so-called credit card rewards “chasing” can “quickly backfire and lead to overspending and debt” if you’re not careful, she says.

Do this instead: Woroch says paying with cash can help limit impulse purchases. When using a credit card, make sure you can pay off the balance in full to avoid incurring interest.

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Donna Fuscaldo is a contributing writer and editor focusing on personal finance and health. She has spent over two decades writing and covering news for several national publications including The Wall Street Journal, Forbes, Investopedia and HerMoney.

Deirdre Shesgreen is an AARP writer and editor covering Social Security. She previously worked as a state news editor for the AARP Bulletin and as a reporter and editor at USA Today, the St. Louis Post-Dispatch and other publications.