Given that money has been around for a pretty long time, it’s not exactly surprising that some folks get a bit obsessed with the idea of being frugal. From people way too into coupons, to a nearly pathological desire to utilize every sale, it’s easy to notice when someone overvalues money and absolutely undervalues their own time.

This is perhaps why the saying “penny-wise and pound-foolish” has been around since the 16th century. For non-UK readers, the pound being referenced here is money, not a unit of weight. The idea is not hard to grasp. Some people are so obsessed with saving a little, one way or another, that they end up making, as seen here, costly mistakes.

It’s not that it’s bad to be frugal. Like in all things, balance is key. For example, some might be familiar with the “boots” theory of economic inequality. This comes from Terry Pratchett's 1993 novel Men at Arms, where a key character argues that “A man who could afford fifty dollars had a pair of boots that'd still be keeping his feet dry in ten years' time, while a poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet.”

Interestingly, this theory holds water even in the real world. For example, many companies offer payment plans, with interest on certain items, for example, children’s boots. Researchers looked at one instance, kid’s boots from Fingerhut that cost $25 on the spot or $37 with a payment plan. Poorer people tend to opt for the payment plan as they might not have the cash they need on hand. 

In other words, even if they technically have the money, poorer people are less free to use it, forcing them to take worse deals. From this perspective, frugality is good, because decent savings can allow you to save more in the long run. Plus, it is simply always good to have savings because life has a “fun” way of springing unfortunate surprises on you.

But, alongside the literal costs, there are negative side effects of being too frugal. Case in point, while some might call themselves frugal, others will use a word with a more pejorative connotation, the infamous “cheap.” This is largely a difference in opinion, but one has to admit that it’s possible to be so obsessed with saving every last penny that you end up destroying friendships. 

There is an important balance to strike. Sometimes you need an expert. After all, you wouldn’t ask your random friend to perform even “routine” surgery on you, unless they were literally a surgeon. So why would you assume you could perform repairs on a variety of household items? To be fair, there is a growing movement to allow people to repair things themselves, but this doesn’t actually mean it will be cheaper. 

Of course, for some, “not paying for it” isn’t just a practical consideration, it’s a way of life. But there is a fine line between actually being handy and thinking “How hard can it be?” That line tends to be crooked and surrounded with poorly hammered holes. Unfortunately, that incredible feeling of a good deal can be so intoxicating that, in the search for more, you end up overlooking massive flaws.

At the same time, people are possessive over money. After all, it can sometimes take our literal blood, sweat, and tears to get it, so spending it without a “good” reason can seem unthinkable. This ends up leading to a person undervaluing the risks. The results of this sort of thinking are littered across this article for all to see.