5 frugal moves that just aren’t worth it in the long run

If you’re on a money-saving journey, there are so many fabulously frugal ways to save $$. The following however, you can cross off your list.

By Maddie Southall

When we’re trying to save money, we tend to keep our eyes peeled for ways that we can maximise our money and make it go further. 

Case in point: 101 clever ways to save money and live a richer life

However, when you’re tempted to cut corners too much or skip some services entirely, it can come back to bite you later.

Many seemingly frugal decisions can save money in the short term, but may lead to unexpected costs, poor-quality outcomes and financial setbacks over time. Not to mention negatively affecting your health and wellbeing along the way.

To help you sort the cheap from the cheerful, we’ve made a list of the frugal moves to avoid because they’re simply not worth your time and energy.

1. DIY home repairs without experience

While doing repairs yourself can save money, taking on projects you're not equipped for can lead to expensive mistakes that need a professional to fix.

Don’t get us wrong, there are some totally doable DIY tasks around the house, but if it seems above your pay grade, it probably is. Not to mention the safety risks of attempting anything plumbing or electrical related – that’s a blanket no across the board unless you’re a licensed professional.

That being said, if it’s a simple matter of touching up the paint, unclogging a drain, sealing gaps around windows and doors, fixing a leaky tap, or patching small holes in the dry wall, you might be able to get by with some research and a can-do attitude. However, if you’re unsure, best skip the DIY and leave it to the professionals.

2. Skipping check ups and appointments

Dental and GP check ups/tests are a drag, no one wants to take the time out of their day to sit at a  doctors office and use their hard earned cash to pay the Medicare rebate gap, or get a filling at the dentist.

However, saving money in the short term will absolutely cost you more down the road. The beauty of these frequent checkups is that doctors can intervene before a niggle becomes a full-blown problem, or in other words, prevention is better than cure.

Ignoring slight tooth pain for example might seem trivial today, but what about 3 months down the line when that slight pain has graduated to unbearable? Unless attending emergency dental at 2am (and paying a lot more for the privilege) sounds fun to you, it’s best to just get a regular check up every 6-12 months as recommended by Health Direct.

‍Check out Citro’s guide to vital health checks to have in your 50s and 60s.

3. Eliminating all fun or socialising 

Sometimes when you’re on a savings mission, it can be tempting to maximise your savings at the expense of your general enjoyment. When done in moderation, it can be good to reign in your spending habits to save for a particular financial goal like paying off a mortgage or debt, but it’s still important to enjoy your life as well.

Forsaking all entertainment or social activities in an attempt to save money can negatively impact your wellbeing and relationships. Over time, isolation or burnout can be just as costly, both mentally and emotionally. This could potentially require you to spend more money in the long run on self-care, mental health, or even the need to take time off work due to burnout.

So if you find yourself constantly saying no to life’s experiences, it might be helpful to think about loosening your grip a bit. After all, life is for enjoying, and as cliché as it sounds, you only live once.

‍Start here: 4 ways to spend your dwindling cash that will boost your wellbeing

4. Not having private health insurance

The glaring downside of going without private health insurance is that if you develop a health complication or suddenly need surgery, the out-of-pocket costs will likely be substantial. Also, there may be much longer wait times for treatment and even restrictions on which doctors and hospitals will provide care.

The “strategy” of winging it or simply hoping that you never develop a condition or have an accident, is a risky one, and becomes increasingly risky with age. Just ask Citro writer Nicole Peteson-McKinnon.

‍There are many other day-to-day benefits of having private health, regardless of whether you ever need serious medical treatment or not, like saving money on prescription medicine. 

Also, it’s worth noting that if you earn excess of $97,000 for singles and $194,000 for couples and you don’t have private health cover, you will be required to pay the Medicare Levy Surcharge (MLS). So, if you’re going to have to pay extra anyway, private health might be worth looking into.

5. Not saving for retirement early

Delaying saving for retirement can seem like a short-term way to free up money. However, the longer you wait, the harder it becomes to catch up, and you miss out on compound growth opportunities. So if this is something you would like to start prioritising, this is a great time to get your ducks in a row.

If that means tackling your debt first, that’s a great place to start. If that’s already taken care of, here’s some more Citro articles to keep your nest egg growing nicely:

• The 5 pillars of an epic (& financially secure) retirement
• Understanding superannuation and how retirement income works
• 4 things to know about risk and retirement income
• 11 ways to make retirement income last as long as you do
• Age Pension 101: terms worth knowing to cash in during retirement
• Cracking the annuities code: get retirement income certainty
• Peak pension: a sweet retirement income strategy

Feature image: IPGGutenbergUKLtd/ Canva

^{This article contains general information only and is not financial advice. It is not intended to influence readers’ decisions about any financial products or investments.  Readers’ personal circumstances have not been taken into account and they  should always seek their own professional financial and taxation advice that takes into account their personal circumstances before making any financial decisions.}