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Bragging about being thrifty may get your props from your peers. But just because a decision appears to be a savvy money move doesn't mean it actually nets savings. Here are seven things people do in the name of frugality that actually cost them money -- or worse.
Maintain membership in The Clean Plate Club. Just because it's in your bowl doesn't mean you have to eat it. If you're full or it's unhealthy, stop eating. Throw the rest away (or save for later). Your choice is obesity or throwing out food. Neither are great, but obesity will cost you in medical expenses and lost wages. Tossing out uneaten food will teach you to serve yourself smaller portions.
Buy clothes that don't fit (or you don't like) because they're on sale. It's not a good deal if you don't wear it. And (speaking from years of promising myself to lose that last 15 lbs already), if it doesn't fit now, it won't be in style when in may fit in the future (though it probably won't ever fit).
Manage your own investments. Yes, fees can eat away at your hard-earned savings. But unless you're a financial professional, hire an expert to advise you on managing your finances (and there are some excellent arguments for why everyone should hire a neutral, non-emotional third-party). According to one recent study by managed accounts manager Financial Engines, 401(k) participants who paid extra for advice earned on average 3.32 percentage points more per year, net of fees, than those who managed their accounts themselves.
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Save half-used cosmetics. Look: If you found that eye concealor to be a shade too dark last summer, and the hair gel was too sticky, you will not feel differently next year. Plus, many beauty products have expiration dates for a reason. So, if you're not going to use it now, toss it, already.
Rent a storage unit to save valuable stuff. In general, no one stashes valuables in a $99/month self-storage unit. Storage Wars aside, most of those places are full of junk that no one wants in the event they are abandoned and the contents are auctioned off by the property owners. If you owned valuable antiques, you would house them in a climate-control home of a trusted friend; jewels and cash go to the safety deposit box. What they are full of is sentimental stuff that has no monetary value, and no practical value since it serves no one. And the owners don't even enjoy it since it is on lockdown on the outskirts of town. Sell, give or toss it, and find ways to curb your habit of accumulating too many things.
Drive a hoopdie. Now, I get that in addition to being frugal and driving your car well past its pretty, you are being political and rejecting our culture's obsession gas-guzzling, status-making vehicles. But at some point your ride just gets too old to make financial sense. Even if over the course of a year the repairs on your current car do not exceed monthly payments on a new one, there are other things to consider: Is your car unreliable, possibly leaving you without a way to get to work -- or worse, stranded on the side of the road?
Clean your own home. So many highly paid people insist on cleaning their own homes. If you are a professional, your time is worth more money per hour than what it costs to hire a housekeeper to scrub it clean every week or two. That pro is far more efficient at this task than you are. Use those hours to invest in your career or business, or enjoy life.
