If you’re reading this than you probably have a desire to live a more frugal life. But developing a finely-tuned frugal mindset can take some time. It’s not easy. When you first start trying to spend less on things you’re eye catches every potential deal that’s out there. However, there are a few traps that can end up hurting your chances of success:

1. Buying the Wrong Products in Bulk

This is the classic trap. You see a crate full of something and look at the total price. In your mind you quickly calculate the per-item cost and you are blown away at the savings. You buy it. Three months later you still have two-thirds of the product left and no desire to use it, or even worse, it’s expired. If you’re a regular Sam’s or Costco user you know what I’m talking about.

2. Free Trials Turn into (Oops!) Credit Card Charges

We’ve all signed up for a free trial and accidentally forgot to cancel after the trial period. It happens. You end up paying an extra month of something that you stopped using after the first free week. If you use free trials, please make sure you set yourself a reminder to cancel the subscription. I use my MS Outlook calendar at work.

3. Chasing the After-Purchase Rebates

With a little work, the after-purchase rebate can work out great. Mostly though, we get a product home and never take the time to mail in the forms to get the rebate. You’re too busy using whatever it is you bought, right? Also, if the rebate is a reward instead of money, make sure it’s a reward you want. Bottom line: try to buy products with in-store rebates and get all your money up-front.

4. Not Reading the Fine Print

You mean I have to buy two? You mean I have to dine-in to get the deal? Take the time to read the small print on all your coupons, as they will inform you of what kind of deal you are really getting.

5. Confusing Cheap for Frugal

Lastly, don’t ever confuse frugality with being cheap. There a big difference, in my opinion. Find the balance between sacrificing your time/effort and the price you are paying. Also, try to avoid sacrificing quality if it’s a product that you will be sitting on, sleeping on, or depending on in some way.

Written by PT of Prime Time Money (RSS)

This entry was posted on Thursday, March 20th, 2008 at 7:00 am and is filed under Frugal Tip. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.