Living stingy. When you hear that phrase, how do you feel? Too many people are spending way beyond their means. Every time they receive a paycheck, it goes straight to speneding on takeout, clothing and whatever else brings them joy. Even worse, they may need it to pay down their credit card debt as they’ve spent before earning the cash to cover expenses!
In this article, I’ll go over the definition of living stingy, an alternative to the lifestyle of excess that so many partake it. Additionally, I’ll explain the pros and cons and when it’s a good idea to be stingy.
Read on to learn about living stingy and how to properly practice this lifestyle.
What Does Living Stingy Mean?
First of all, what does living stingy mean? Generally, stingy means being critical of any unnecessary expense and completely cutting it out. Additionally, a stingy person will try and buy the cheapest item possible to save as much money as possible. Stingy people are concerned about the price of items over the quality. Living stingy has both advantages and disadvantages. Let’s go over the pros and cons and how you can start living stingy.
Examples of Living Stingy
There are many ways to live stingy. This lifestyle can either be positive or negative. Generally, positive ways of living stingy mean that you are saving money without hurting yourself or others.
Here are a few positive examples of how living stingy:
- Only grocery shopping with coupons
- Refusing to pay retail price for clothing, electronics and vehicles when you can buy a used version that’s just as good
- Always creating a budget and sticking with it when making all purchases
On the other hand, there are negative ways to live stingy. These bad habits either hurt you or others emotionally or financially. Here are some signs of a cheap person who is on the negative end of living stingy:
- Never offering to pay the bill when their friend always pays
- Taking condiments from the restaurant table after a meal
- Bringing his or own own snacks and drinks into into the movie theater
- Declining events that cost money and only wanting to attend free events
Stingy or Cheap vs Frugal
There is a subtle but clear difference between being stingy or cheap vs frugal. A stingy and cheap person will try to save as much money as possible with to regard to the consequences of actions. On the other hand, a frugal person is smart with his or her money. He or she isn’t afraid of spending more money on a quality product. Why? If someone buys an item of clothing or furniture that’s higher quality, he or she won’t have to replace it as much. The cost per use will be a lot lower.
There’s nothing wrong with living stingy, but there are some pros and cons to this lifestyle. Let’s get into them.
Pros and Cons of Living Stingy
Pros of Living Stingy
Saving Money Short-Term
When you live stingy, you’ll be able to save money quickly in a shorter period of time. How? Living stingy means cutting out all unnecessary expenses. This includes any takeout, subscriptions and, yes, even your weekly nail appointment. In addition to cutting out fun and discretionary purchases, living stingy means savings as much money as possible on everything.
For example, stinginess means you’ll buy the cheapest jar of peanut butter instead of opting for the healthier jar of peanut butter that you usually purchase. A person living stingy will buy the cheapest t-shirt from the thrift store or department store without regard to quality.
Becoming More Mindful of Spending Habits
When someone lives stingy, he or she will need to completely cut out all discretionary expenses and adjust spending on other items. If you are constantly looking at your spending habits, you’ll know exactly how much you aren’t spending on Netflix and your three times per week takeout splurges!
Cons of Living Stingy
While there are many advantages to stingy living, there are also several disadvantages to this lifestyle.
Losing Money Long-Term Due to the Cost Per Use of Items
While a person living stingy will save money in the short-term, he or she may end up spending more money and wasting time in the long run.
Here’s an example to demonstrate my point:
Frugal vs Stingy
Let’s say that it’s winter time and you need a new jacket to bear the cold months as you live in a snowy area of town. You’re living stingy, so you’ll want to buy the absolute cheapest winter jacket. The jacket goes for $50 – a steal, right? However, the jacket only lasts one season. Over 10 seasons, you’ll have to spend $500 total!
On the other hand, if you purchased a jacket for $150 that lasts 10 seasons, you’ll end up spending $350 less than if you went with the cheaper jacket. Additionally, you’ll only have to go to the store once to purchase the jacket instead of ten times! That is hours of time saved. The difference between being frugal vs stingy is obvious in this case – you purchased a higher-quality item and knew that despite the price, it would last a lot longer than the cheaper item.
While this might be an extreme case, it’s a perfect example of why being stingy can cost you in the long run. Being stingy is fine short-term, but for larger-ticket items, if you can afford it, it’s best to purchase higher quality items that last you longer. You don’t have to go crazy and practice being the opposite of stingy by buying the most expensive items. Go for quality and price – there is a way to balance the two without being cheap!
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Potential Decreased Enjoyment of Life
Being stingy might be exciting in the short-term. After all, you are saving money, right? No better feeling than seeing the number in your checking account get bigger and bigger. However, when you practice living stingy in the long run, you’ll forgo all unnecessary, fun purchases. After not being able to enjoy a night at the movie theater or even the odd candy bar, you may start feeling less happy. After all, we all need a treat every once in a while! Life is more than paying bills.
In addition to a decreased quality of life, living stingy long-term may cause you to go on a spending binge after your stingy stint – or during it.
Possibly Developing an Unhealthy Relationship With Money
Long-term stingy habits can lead to developing an unhealthy relationship with money. When you see any discretionary expenses as excessive and taboo, you may struggle to treat yourself long after you’re done with your ‘stingy binge’. As a result, you may struggle to spend money when you need to on quality items and may buy cheap items instead.
Strained Relationships
Generally, you’ll want to avoid stingy habits that hurt other people. Stingy practices such as never paying for someone’s coffee or stiffing someone out of money hurts others and your relationships with them. Stick to stingy practices that only impact you and you only. Try to practice being the opposite of stingy: being generous. Offer your time to help others, donate to causes you care about and don’t cheap out on treating your loved ones to dinner, coffee or gifts when you can.
Sacrificing Wellbeing When Being Stingy Long-Term
In addition to potential loss of money and strained relationships in the long run, when you’re stingy long-term, you can hurt your health. While there’s nothing wrong with finding cheap, healthy groceries and making inexpensive, nutritious meals, when you buy cheap, highly-processed foods for years and years, your health could suffer. You could develop health problems from a lack of nutrients or purchasing items high in sodium and processed chemicals. If you decide to buy cheap shoes instead of investing in quality kicks, you could develop problems with your feet in the long run. After a while, you may need to pay for special shoes or therapy much higher than the cost of a quality pair of shoes. Again, living stingy short-term to reach a goal is just fine, but it’s not a great idea in the long run.
How to Live Stingy While Being Sustainable
All things considered, extreme frugality and living stingy is a great strategy short-term. Avoid the cons of being stingy long-term by:
- Setting a timeline for your stingy phase. 1, 2 or 3 months is a great place to start. This way, you won’t deprive yourself of treats in the long run and you’ll be more likely to stick with and achieve short-term saving goals. Of course, if you’re living on a low income and need to save as much as possible, do so until you are in a better situation.
- Forgo any large purchases during your stingy phase. Save them for your regular budgeting so you don’t buy the cheapest jacket or appliance, only to have it wear out a year later. Be stingy on food and clothing – aka, lower-ticket items
- Sticking to your financial goals and ending your stinginess when you’ve achieved them
When You Should Start Living Stingy
Living Stingy is a Good Move When Funds are Tight
While there are many downsides to living stingy, don’t let that deter you from trying it out! This lifestyle is a great way to stretch your limited funds when you’re short on money. If you’re on a low income, in between jobs or have gone down from two incomes to one, extreme frugal living or living stingy is the ideal way to live.
When You Need to Save a Large Amount of Money in a Short Time
In addition to the benefit of stretching your dollar when money is tight, living stingy is great for short-term saving goals. Let’s just say your discretionary expenses are around $300 a month. When you completely cut out this expense and redirect it towards your savings, you can hit your goals in a short period of time. Intentional saving is the best way to go when you need to save for something specific.
Ways to Start Living Stingy
Set Short-Term and Long-Term Financial Goals
Before creating a budget and getting into the practical aspect of living stingy, you’ll need to create goals. Choose short-term goals that you’ll want to achieve within the next year, and long-term goals that you want to achieve in a year or more.
Be sure to write down:
- The goal (a vacation, x% paid off your credit card loan, a new car)
- How much you’ll need to save per month
- The length of time it’ll take to achieve the goal (6 months, 8 months, a year?)
Feeling overwhelmed about which goals you should choose? Pick one short-term goal and one long-term goal. If you’re in debt, it’s a good idea to choose goals that will help you get out of debt faster. Be sure to consult a financial advisor first who can help you with your unique situation.
Set Short-Term Goals
Short-term goals include anything you want to accomplish in the next year. Do you want to save $2000 for a trip to Mexico in December? Do you want to chip away at your credit card bill and pay off $1000 worth of interest by the end of the year? Every person is different – there is no right or wrong answer. However, if you’re in debt, it’s generally a good idea to get rid of it as soon as possible.
If you’re deciding whether to pay off interest on a loan or invest, here’s a simple rule. Generally, if the interest on your loan is higher than the average annual return you’ll receive when investing in a portfolio of stocks, bonds and ETFs, it may be a better idea to pay off the interest first. Be sure to check with a financial advisor before making any financial decisions.
Set Long-Term Goals
Aside from financial goals you want to achieve in the next year, what do you want to achieve in the long run? Think about your objectives separate from short-term goals.
Write Your Goals Down
Once you’ve decided on your short-term and long-term goals, it’s crucial that you write them down. Purchase a special journal or notebook with a nice pattern and invest in some attractive stationary. Set aside an hour or so to sit down at your couch with a cup of tea and write down your goals.
Create a Budget and Cut Out Unnecessary Expenses
Once you have your goals set, it’s time to create a budget based on your income, regular expenses and goals.
Create a spreadsheet or use a Pinterest template to help you. Plug in:
- How much you make per month after tax (your income)
- Your fixed expenses – rent/mortgage, utilities, car payment
- Variable necessary expenses – clothing, groceries etc.
- Savings goal – for example, if you want to pay off $200 towards your credit card bill, create a line item of $200 per month for this goal
Take your total expenses and subtract them from your monthly income. Anything leftover should be directed towards your savings goal. As you’re living stingy, you’ll get rid of any expenses that aren’t necessary to your survival. Cancel your Netflix or cable bills, commit to only cooking food at home rather than ordering takeout, say ‘no’ to leisurely mall shopping trips and make your own coffee at home.
It’s best to transfer the savings you acquire each month from living stingy to their own bank account. Why? When they’re separate from your checking account, it’s a lot easier to see how much you have and how close you are towards reaching your goals.
Aim to Be Frugal vs Cheap in the Long Run
After a period of going frugal extreme, you should try to practice sustainable frugal living. The difference between extreme frugality and being frugal is simple. A stingy or overly frugal person tries to save money in the short-term with no regard to quality – just price. On the other hand, a frugal person looks at the value of an item. Being frugal is sustainable long-term because you focus on paying more for things that matter. The difference between cheap and frugal is subtle yet distinct.
Not sure where to start? Begin with frugal eating by creating a grocery list, meal planning, price comparing at different supermarkets and doing meal prep. You can also look into creating a capsule wardrobe where you focus on buying and keeping minimalist pieces that go with multiple items. Decluttering your wardrobe and sticking to high-quality clothing is a great way to practice being frugal and thrifty.
A Final Word on Living Stingy
Living stingy is the ideal strategy for those who want to save a large amount of money in a short period of time. While being stingy and cheap instead of frugal isn’t a sustainable, long-term solution, it’s a great way to start and maintain good habits.
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Janita is a frugal living expert and owner of Frugal Fun Finance. With over five years of personal experience finding and trying out the best ways to make and save more money, she's eager to share her knowledge. Janita's strategies have helped her save thousands of dollars for funding investments and traveling to over 20 countries.
Janita completed training in personal finance at The University of Western Ontario and McGill University, two prestigious Canadian universities. Her expertise has been shared on GoBankingRates, Yahoo Finance, and NASDAQ.com.
