George Kamel - Frugal People Never Do THESE Things

Episode Date: January 10, 2024

Are the frugal among us on to something? Or have they gone off the cheapskate deep end? Find out as I breakdown things that frugal people *allegedly* never do. Links: Check out my video on Budgeting for Beginners Order George Kamel’s new book, Breaking Free From Broke.  EveryDollar budget deal: I love a good deal, and when you sign up using this link, I’ll hook you up with a 14-day free trial and $15 off your first year of the premium version of EveryDollar. Learn more about your ad choices. Visit megaphone.fm/adchoices

For some people, being frugal is a badge of honor. They just love being able to tell you that they found their shoes underneath an open box of Dunkeroo's in the clearance aisle of Walmart, which is why they were able to negotiate down another 10% on account of the cookie crumbs. We're America's cheapest family. But as miserly as that might seem to some people, I frankly think the frugal among us, with whom I have been known to identify with, are onto something here. So today, I'm looking at a list from MSN, the messenger of the modern era, about things that frugal. People allegedly never do. And I'm going to share my real-time reactions on whether or not there's some truth to it.

But before we get to the list, I just want to remind everyone that this YouTube channel is not only gluten-free, it's like free-free. So for my frugal friends, hit that like and subscribe button with reckless abandon to show your support for cost-efficient entertainment. And while you're at it, share it with your faithful frugal friends from Framingham. For real. Who are we talking about? First thing frugal people never do, according to MSN, the authority.

on something. Impulse shopping. This one's interesting. It's tricky because spending money is easier than ever before. So what even is impulse? Like if you scroll on your phone and you see it and you buy it, is that impulse? I mean, have you noticed that sellers are high-key stalking you all over the internet with these targeted ads? How did they know I needed a new adult coloring book? I didn't even Google. I just talk about it nonstop. Hey Google. Order 17 adult coloring books from Amazon. It's not normal. I think most people can relate to falling for an impulse buy. In fact, a recent In recent survey shows, 45% of Americans say they struggle to avoid impulse buys, which adds up to an average of $314 every month. In other words, almost $4,000 a year or $226,000 in a lifetime.

So, do I think frugal people never impulse buy? We'll never say never. I mean, Bieber didn't. But I do think that frugal people, they spend with cash. They're more intentional. And they're going to wait a day before making what could have been an impulse purchase. So to this one, I say, thumbs up. Next on the list, frugal people, never waste food.

I think I would tend to agree with this one. I have been guilty of this as someone who is self-described as frugal. According to stats, U.S. consumers waste about one-third of all purchased food, which is equivalent to $1,500 worth of groceries for a four-person household each year. And again, this comes down to intentionality and self-control. When you're over that lentil soup that you made yesterday and you're tempted to Uber eat some kebabs from King Tuts, just eat the soup.

Okay, your finances will thank you for it. So here's some ways to avoid wasting food. Number one, meal plan. Actually, think about what you're buying, why you're buying it, what you're going to make from it, so that you don't just buy kale for fun hoping that you'll maybe use it before you throw it out.

You've accidentally given me the food that my food eats. Another thing you can do is shop your own pantry and fridge when you're making a meal plan. And you can use AI to your advantage here. Just type in all the items you have. have into chat GPT and say, hey, make me a simple meal in under 10 minutes using these ingredients. You would be shocked at how many ideas will come up. And next thing you can do, make a grocery list, be an adult.

Our millionaire study revealed that millionaires use grocery lists. So next time, you don't want to do it, just think, I'm doing millionaire stuff. And if you want more help with this meal planning thing, I made a whole video on how to use technology to your advantage and make a meal plan real easy and simple with chat GPT. I'll link that video below if you want to check it out. Next on the list of things frugal people never do, use credit unwisely. Here's what the article says. Unwisely using credit leaves people in unending debt cycles.

You should never make this mistake if you are looking to secure your financial future. Thank you, Robot, who wrote this MSN article. So here's what MSN recommends. Again, not me, MSN. Paying the entire balance by the end of the month or more than the required minimum amount. Avoiding so many credit cards, one with great features, avoiding using up your full limit or utilization, and monitoring and finding ways to enhance your credit score. Well, I'm going to be honest, it's a load of bologna, MSN, or the robot who wrote this.

This is a load of burnicles. Here's why. All of that keeps you in a cycle of debt. The wisest way to manage debt is to not have any at all to manage. Okay? When people talk about being wise with money, they're usually talking about debt management instead of money management. When I got out of debt, I had more margin.

When I cut up the credit cards, I built wealth faster. because I wasn't playing their game trying to get 2% cash back. Instead, I was going, I got an emergency fund. I don't need the banks anymore. I got my own bank. So there you go.

I disagree with this one. I think frugal people don't do debt at all. Next up on the list of things frugal people never do. Buy brand names only. That's a very specific turn of the phrase there. Do they only buy name brands? No, do I think they could buy some name brands? Sure, if that's something they want.

But I think overall, frugal people are going to go generic when it makes sense. Maybe you want a certain brand of diapers. I get it. I got my particulars too. Like when it comes to Seltzer Water, Spindrift is the goat. There is no conversation about this. But here's what I do. I wait for SpinDrift to go on sale at Publix by one get one,

and that way I can be frugal about having the name brand. Other things to go generic with? Cleaning products, trash bags, condiments, pantry staples, and paper products. Now, personally, I'm not going generic with TV. Okay, life is too short and those plies are too thin. And that's why I became debt-free so I can wipe on-brand or a Charmin, ultra-strong family. Stay strong. Why do you care so much?

All right, let's move through these next ones. Frugal people never neglect budgeting. I'm going to say a huge thumbs up to this one already. You see, a lot of people think, I make too much money to do a budget, or I don't make enough money to do a budget. Well, frugal people and people that are intentional with money, they're making a plan for their money, whether they make a little. or they make a lot. So budgeting isn't for broke people or cheap people. You should be budgeting even when and if you are wealthy. Next up, frugal people never buy new when used works. Why does that feel like a Yoda quote? Do. Oh, do not. There is no try. But yes, overall, I'm going to give

this one a thumbs up. There are things that I will buy used to save money. And one of those things is furniture like a coffee table. Not a couch or mattresses. I have boundaries, but certain pieces of furniture that could be expensive, you can buy some great stuff from Facebook Marketplace. And the biggest area that I think people mess up with here is cars. They're buying new cars instead of used cars in order to be safer and have a more reliable vehicle, but that's BS because your new car is a used car as soon as you drive it off the lot. And it's depreciating and value like a rock.

That's where Chevy got it from. Next up, frugal people never ignore energy waste. I don't think they're wasteful with it, but do I think they put the thermostat on 60 degrees in the winter to save? I don't know about all that. I just think they're more intentional about their decisions with it, and they're not just willy-nilly. So I'm going to give this one a... Next up, frugal people never ignore DIY for things like plumbing, HVAC repairs and maintenance, appliance, appliance, sewing, window cleaning, carpentry, car maintenance, and wall painting. I think frugal people, when it makes sense, will try to cover something themselves, but they know their limits.

and they're willing to pay people, but here's what they do. They're going to reach out to multiple people. They're going to get bids on the project, and they don't just go with the first provider. And maybe they negotiate. They say, hey, I'm paying cash. Would you be able to give me a discount because I'm paying with cold hard cash? So for me, I'm not a DIY guy.

I'm going to hire a local handyman or service provider to cover those things. But frugal people do stay on top of maintenance to avoid those big repairs, and they have an emergency fund to cover this stuff so that it's not a huge stressful, chaotic experience. it's just an inconvenience. Next up on the list, frugal people never pay for unnecessary subscriptions. Well, yeah. I mean, this is your official PSA here to cancel your T-of-the-month club membership.

And we've all been guilty of this. If you go to your bank statement and you see all the subscriptions you're paying for monthly, you'll realize, and this is stats out there that show this, most people on average have nine subscriptions and they're paying over 200 bucks a month for this stuff. And because frugal people are budgeting, they're paying attention to where all of that money is going every month. and so that unused star subscription is not going to go unnoticed.

We're getting rid of it. Next on the list of things frugal people never do, mindless entertainment spending. Again, it's said in a very aggressive tone, mindless. I mean, isn't all entertainment at some level a little mindless? Isn't that the point of entertainment? But yes, having the willpower to say no

to mindless purchases and mindless entertainment, that's the key. And here's a great quote from Dave Ramsey that sums this up. Adults devise a plan and stick to it. Children do what feels good. And to me, that's what mindless is. You're just following your own emotions and feelings of the day

instead of following a plan and having some discipline. And here's what I love about making a budget every single month. A budget allows you to have mindful entertainment. I'll see myself out. Next up on the list, things frugal people never do. They never sacrifice quality for cheapness. Here's what the article says. Compromising quality to save money will end up costing you so much more.

like this one. And it reminds me of this subculture I've seen. There's a subreddit for this, tread lightly, but it's called Buy It for Life, B-I-F-L. And the idea here is, hey, what if we actually invested in something? We put a little more money into it, knowing that it's going to be quality, that it's going to last a long time. We're talking stuff that can be handed down to our children and our children's children because it's made so well. So here's some things the article says don't be cheap on, mattresses, underwear, tires, insurance, and prescription eyeglasses. I would agree with those. That's a weird list. Whoever came up with that, but it's a good one. So this one for me gets a thumbs up. Don't sacrifice quality. Frugal people don't just stay cheap

on everything. They know what they're doing. Next on the list of things frugal people never do. They never purchase trendy items. I like this one. I'm going to give it a thumbs up. And here's why. In 2007, that fedora that you paid way too much for was giving Jared Leto. And in all of the wrong ways, by the way. But today it's just giving Jared from analytics going to Dave and Busters. Do you like my fedora? Yes, sir. Thank you. Things that are on trend, it just means it's not going to be cool a month from now and you've just wasted money on it. Frugal people, they're more timeless, okay? This is timeless. Denim will still, the denim will be

around for centuries to come. I'm the king of fashion. All right, that was a good time. I mostly agreed with that list of things frugal people don't do. But what I'm really noticing is that you could replace the word frugal with the word smart or wealth-minded. You see, when your mind is focused on building wealth, you tend to replace negligence and impulse with intentionality and discipline. You're not trying to flex and compare your life to others and spend your way into a meaningful life. You know what your goals are and you're going for it. And that means you're spending more intentionally. So if you're thinking, maybe she's born with it, maybe it's Maybe it's Maybe it's Maybe it's Maybe it's Maybe it's wrong on both accounts. Nobody is born with this level of discipline.

But you can 100% develop this over time and get yourself to a place where it kind of becomes second nature. And I recommend simply making a budget to kick things off. Because once you start tracking your expenses and start setting goals for your money, you're going to find that making these smart, frugal decisions, it'll come much more easily. And if you don't know how to get started, I've got a whole video on budgeting for beginners, and I will link it down below. And also, if you want to start budgeting for free, check out every dollar in the app store, give it a download, and get your budget set up in minutes.

So let me know in the comments whether you consider yourself a frugal person or not. And while you're at it, share this with a friend who is definitely not frugal in the least bit. This can be their passive-aggressive wake-up call. Done out of love, obviously. As always, thanks for watching. We'll see you next time. Hey, Siri, order as much diarrhea medicine as you can from your local retailer or Amazon. Okay, I found this on the web for order as much diarrhea medicine as you can from your local retailer or Amazon.

Check it out. Emerson?