1. Big houses
We know that it’s nice to have a big house with a large living room and plenty of bedrooms, but is that absolutely necessary? In many parts of our country, housing costs have skyrocketed in recent years. As beautiful as it is to be a homeowner, being one is likely to have provided you with a big financial windfall, at least on paper.
If individuals are growing wealthy from their mansions, you should probably purchase one too, right? Well, the short answer to this question is no!
One definition of frugality is the practice of avoiding or mitigating financial losses. Every single person who lived through the Great Recession now understands that housing market bubbles might burst with terrifying rapidity.
And as mortgage rates climb, many areas are seeing a decline in housing values right now. Let’s not forget that a big house also comes with different costs, such as larger monthly payments, tax increases, rising expenses for health care coverage, more frequent and expensive breakdowns in maintenance and repair, rising costs for essential services, and higher costs for homeowners’ insurance.
If you plan on purchasing a huge home, don’t forget that there are a lot of details you should take into consideration, so it’s best to think at least twice before making any decisions!
2. Expensive vacations
Don’t get us wrong; we would love to book an all-inclusive vacation right now and go somewhere exotic and fancy. But we know that something like this is going to cost a lot.
In the last few years, the world has become the victim of hardships, including the COVID-19 epidemic and out-of-control inflation. So yeah, we could all use a little downtime.
So, maybe you’re considering a vacation to a luxurious 5-star resort in a faraway land. Not a problem. But truth be told, that’s hardly the kind of thing thrifty folks do.
We once heard something about finances that was so interesting that we couldn’t forget about it. If you want to purchase something, calculate if you have enough resources to buy it twice or three times. That’s when you know you have enough money to make that purchase.
Spending several thousand dollars on a single vacation is a lot to ask of someone who is trying to save money for a comfortable retirement. Either you spend today and cry tomorrow, or you save now and have tomorrow. You get to decide.
…Have fun putting money away!