11 Things Frugal People Refuse To Spend Their Money On So They Can Retire One Day
Finding small ways to save money is an investment for the future.
Drazen Zigic | Shutterstock The dream of retirement feels increasingly out of reach for many of us. With the looming debt and rising living costs, the idea of stepping away to live comfortably can feel more like a fantasy than reality. However, there are things frugal people refuse to spend their money on so they can retire one day, cutting down on unnecessary expenses and choosing a self-sufficient approach.
They use their frugality to their advantage, whether it's cutting their own hair or avoiding impulse purchases. While it's considered minor, these small expenses eventually add up, and frugal people would rather put that money towards their later years. They long to be free from the shackles of work and on their way to enjoy their financial freedom.
Here are 11 things frugal people refuse to spend their money on so they can retire one day
1. Haircuts or coloring
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Frugal people are willing to risk everything in order to save some money, which includes letting go of their appearance. This is not to say that they don't take care of themselves, but they would rather save money than to get their hair cut and styled by a professional at a hair salon.
According to a survey from Advanced Dermatology, Americans spend an average of $277 per year on haircuts, with women paying $286 and men around $268 annually. But there are safe ways to color and cut your hair at home, and even step-by-step tutorials online.
While going to a hair salon is special and their profession requires months of schooling, frugal people are usually just looking for a simple trim. They do this sort of thing all the time to save money because they would rather put those funds towards more important things like their retirement.
2. Dining out frequently
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Dining out at restaurants on a consistent basis is one of the things frugal people refuse to spend their money on so they can retire one day. A 2023 survey from US Foods found that the average American dined out about three times per month, and it wasn't just for the food; in fact, 66% of Americans said they chose to eat at restaurants for the atmosphere.
However, frugal people find ways to make the fine dining experience at home. Not only do younger family members enjoy it, but doing this at home can save money. Prioritizing their financial goals over mood-driven expenses is the key reason many frugal people can build long-term savings for their retirements.
3. Expensive cable packages
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Frugal people are quick to cut out anything that's an unnecessary expense, like cable television. Around 65% of former cable subscribers cited cost savings as their main motivation for cutting ties with their cable companies. The cost of cable has skyrocketed over the years, and with the arrival of streaming services to compete against them, cable companies have to fight tooth and nail for their subscribers.
There are negative aspects of having both. For instance, cable offers people access to channels they don't want while streaming does the same thing by offering access to a small selection of good content, forcing you to watch other things. Having cable television or even a streaming service is rarely worth it compared to other priorities in life.
4. Impulsive purchases
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We've all had a moment where we ask ourselves if we really need to buy something or if we can use what we already have at home. Impulse buying is one of the major issues that consumers deal with.
A 2024 Capital One Shopping survey revealed that the average American spends $3,381 annually on impulse purchases, which equates to approximately $281.75 per month. The survey also found that 72% of online shoppers bought items impulsively due to an advertised discount.
To avoid these advertising traps, frugal people plan their purchases in advance and stick to the shopping list, rarely straying from it. They resist any and all emotion from interfering with their purchase. Not only does this stop them from wasting their money on things they already have at home, but it keeps their financial goals alive and well.
5. Pricey cosmetics
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Makeup and other cosmetics are often seen as a non-essential luxury that women typically buy, but for many it is a necessity they cannot live without. For instance, makeup artists use it all the time in their professions, and the price of the products seem to keep going up.
In this current economy, no item is safe from a price increase. And a survey by StyleSeat revealed that 64% of Americans reported that inflation had impacted their spending on fashion and beauty products.
Cutting back on pricey makeup or foundation can be hard for women who use it as a skill or hobby. Frugal women, in particular, shop for their cosmetics in a way where the cosmetic quality looks expensive, but it really is cost affordable.
A lot of research goes into finding the best and cheapest product on the market, but they feel it's worth it. They occasionally even get compliments on it, often referring other women to the companies that they use.
6. Trendy tech upgrades
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Being frugal means passing up an opportunity to purchase an upgrade for a piece of technology that you already own. People who are tech enthusiasts tend to look down on others who value the simplicity and practicality of technology. If it can still work, they will keep it around until they can't turn it on anymore, making unnecessary tech upgrades one of the many things frugal people refuse to spend their money on so they can retire one day.
This is a rule that they live by because it stops them from impulsively buying something they don't need and saves them money for other things. Every year tech companies try to sell tablets and phones with the same functions as the ones that came out in the previous year. Other than it working slightly faster, nothing has changed and frugal people know this better than anyone.
7. Credit card interest
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When people have to spend money on an unexpected bill, many turn to credit cards to save them from financial ruin. In some of these cases, they tend to not pay the full balance off right away, causing interest to accrue on their accounts. A study by J.P. Morgan Asset Management revealed that people who use their credit limit will usually have less saved up for retirement, compared to those who don't use their credit cards as much.
Instead of relying on credit cards, frugal people wanting to save for retirement plan their expenses carefully and pay off their bills in full every month. Not only does this make them financially disciplined, but paying what they owe ahead of time improves their credit score.
8. Manicures and pedicures
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Getting manicures and pedicures is a luxury that many women, regardless of financial status, enjoy. The average cost of a basic manicure can range from $20 to $40 with specialized services like gel or acrylic nails increasing the price significantly. As much as frugal women like to get their nails done, sometimes it's better to save that type of money and put it into their savings accounts instead.
Luckily, there are at home-kits that consumers can buy to make their nails salon-ready on their own. By doing your own nail care at home, you ensure that you can style it the way you want without breaking your bank. You might not have the same talent as a nail technician, but just like cutting your own hair, learning these skills on your own can help you in the future.
9. New clothing
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People who care about their future retirement and savings would never buy expensive clothing every time they shop for apparel. Clothing can be expensive, particularly when it comes to purchasing them for children, as they outgrow them in a short amount of time. This is why frugal people will purchase clothes larger than their size so that they can grow into them.
The first thing a frugal person checks is the price tag to see just how expensive it is; they then compare the material to the cost of the product. For them, it's a careful inspection to see if the price matches up to the quality. Skipping these high-priced products just gets them one step closer to retirement.
10. Daily coffee shop runs
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While it's nice to spend a little bit on a treat once in a while, a daily coffee run is one of the things frugal people refuse to spend their money on so they can retire one day. Older generations have an odd obsession with young people buying coffee and iced lattes, believing that it is the main reason for why they are all in a financial crisis. Their belief is that if they give up these small luxuries, they will be able to afford rent or even buy a house.
To younger people, this is a form of gaslighting, because even when they do give up their coffee drinks and choose to make them at home, they don't save much on it. On the other hand, frugal people simply give up coffee because it's an unnecessary expense that can save them a little bit of pocket change.
It is true that daily coffee shop runs add up over time, but skipping out on it is not as much. While it won't buy them a house or help them retire early, making coffee in their homes can save them some short-term gains.
11. Monthly car payments
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Making a monthly car payment can be frustrating when you finance a new car, but frugal individuals know how to do so in a way that's both affordable and easy. To them, a vehicle that can drive from one location to another is all of the requirements they need. This keeps their monthly expenses low and well-managed.
Frugal people tend to buy used cars that are affordable and in their price range, and instead put monthly payments into car insurance. In their eyes, cars are necessary tools, not status symbols. It's better to have a car that is paid off than purchasing a brand new one with an expensive payment every month.
Sylvia Ojeda is an author with a decade of experience writing novels and screenplays. She covers self-help, relationships, culture, and human interest topics.
