Yahoo Finance 8 Things Frugal People Never Do at the Start of a New Year
While the beginning of a new year is a time for many to celebrate and embrace fresh starts, experts say it can also be a vulnerable period for falling into the trap of impulsive spending and unrealistic expectations.
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“Frugal individuals, however, navigate this transition wisely by avoiding certain pitfalls that can derail their financial goals and well-being,” said Linda Schroder, real estate investor and owner of Cash for Houses.
Here are some things frugal people never do at the start of a new year.
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Overindulging in Expensive New Year’s Eve Celebrations
Instead of succumbing to the pressure of attending extravagant parties or dinners, Schroder said frugal people opt for more budget-friendly alternatives, like potlucks with friends, cozy movie nights or free community events.
“This allows them to enjoy the festive spirit without sacrificing their financial prudence,” she explained.
She also noted that frugal individuals avoid the temptation to purchase new outfits and decorations specifically for the occasion. Instead, they repurpose existing items, borrow from friends or get creative with DIY decorations, being resourceful and avoiding unnecessary purchases.
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Making Impulsive Purchases
Frugal people resist the urge to splurge on unnecessary items or succumb to post-holiday sales pressure, said Andrei Vasilescu, co-founder and CEO of DontPayFull. “They carefully consider their needs and make informed decisions about their spending.”
According to Schroder, frugal people budget for major purchases, like new electronic devices or appliances. They meticulously research and save throughout the year to avoid rash decisions that might strain their finances.
Renewing Memberships or Subscriptions Without Evaluation
Frugal people take the time to assess whether they’re truly using their memberships and subscriptions. Vasilescu observed that they cancel or downgrade those they don’t use regularly to avoid wasting money.
Schroder agreed, adding that frugal people resist the urge to make significant financial commitments without proper planning. She said this includes avoiding joining expensive gyms without exploring free or low-cost exercise options like home workouts, running outdoors or opting for employer-provided fitness benefits.
“They carefully evaluate subscriptions before signing up and regularly review their existing subscriptions to ensure they are still valuable and aligned with their needs and budget.”
Falling for Get-Rich-Quick Schemes
Frugal people also know that there are no shortcuts to financial success.
“They avoid investment scams or unrealistic money-making promises, focusing instead on long-term, sustainable financial strategies,” said Vasilescu.
Neglecting Budgeting and Tracking Expenses
Experts note that those who are frugal understand the importance of tracking their income and expenses to identify areas where they can cut back or reallocate funds. They use budgeting tools or simple spreadsheets to stay on top of their finances, Vasilescu said.
Setting Unrealistic or Overly Ambitious Resolutions
According to Schroder, this is another pitfall that frugal individuals skillfully navigate. They avoid resolutions that require significant financial investment, such as expensive gym memberships or exotic vacations, opting for goals that are achievable within their current budget and lifestyle.
She said they focus on setting SMART goals — Specific, Measurable, Achievable, Relevant and Time-bound — that provide a clear roadmap for progress and prevent overwhelming vagueness.
Instead of focusing on deprivation and restrictive regimes, Schroder said frugal folks set resolutions that promote positive habits and sustainable changes, fostering long-term success and personal well-being.
Ignoring Debt
Frugal people never undervalue the weight of high-interest debt. They carefully evaluate their outstanding debts and develop a plan for methodical repayment at the beginning of each new year.
This kind of strategic debt management helps them feel less stressed about money and frees up their mental bandwidth for other worthwhile endeavors.
Experts note that one thing frugal people never skip is setting attainable financial objectives. Having these clear objectives gives them direction and drive, whether they’re saving for a home, retirement or college. This proactive strategy also makes sure that every financial choice they make advances their long-term goals.
Falling for Trends and Marketing Hype
Frugal folks avoid succumbing to the ‘new year, new you’ pressure that often pushes unnecessary purchases and self-improvement strategies. They make decisions based on their own needs, values and priorities rather than blindly following trends or succumbing to the fear of missing out, said Schroder. “They resist the urge to impulsively buy items simply because they are on sale, practicing mindful consumerism and prioritizing their financial stability over fleeting trends.”
By avoiding these common pitfalls, Schroder said, frugal individuals approach the New Year with intention and clarity.
“Their focus remains on reflecting on the past year’s lessons, setting realistic and achievable goals, appreciating what they already have, and making small, sustainable changes that contribute to their long-term financial health and overall well-being.”
Finally, she added that this mindful approach to the New Year empowers them to embrace fresh starts without jeopardizing their financial security or compromising their values.
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This article originally appeared on GOBankingRates.com: 8 Things Frugal People Never Do at the Start of a New Year
