Why It’s Time to Ditch the Cheapskate Mentality and Start Getting Rich

Not to brag or anything, but if you Google cheapskate savings tips I am going to be one of your top found sites. Used to be number one and honestly, I’m ok with losing that title. My post 87 Extreme Cheapskate Hacks held that title for a while and now I’m ready to let it go. Here’s why.

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Extreme Cheapskate test run

For a while I thought our family might actually benefit from trying out some of the extreme ways cheapskates on the show Extreme Cheapskates saved money.

We tried things like showering with a bucket, doubling coupons and honestly, I’m not sure I’m still totally beyond the idea of dumpster diving.

Before you think I’m totally gross, did you know places like Starbucks will throw away all of their totally wrapped, uneaten food at the end of the day? –Ok, so this article actually says they are working on stopping, which is great, but they are not the only place that’s gotten into this habit.

Tons of restaurants are throwing away day old, perfectly good food and shows like Extreme Cheapskates show millionaire cheapskates happily scooping them up!

Cheapskates might be good environmentalists

If anything, my biggest ways to try and save money like a cheapskate were really tied to wanting to be more environmentally friendly, which I’m still cool with.

However, remember why we’re here…we’re here to talk about why living like a cheapskate is not actually the right move. Yes, save the environment…no, don’t live like a cheapskate. It might be doing more damage than you know.

If you are ready to start flipping your money mentality and better understanding why you self sabatoge, check out The Coaching Kit! It is a great starter to guide to improving your overall life and mindset!

Your brain will work against you

What happens oftentimes without realizing it is that constant talk and obsession with cheapskate hacks can lead to your brain believing that you are deserving of a cheapskate life.

As Wallace D. Wattles says in The Science of Getting Rich, “No one ever got rich by studying poverty and thinking about poverty.”

Our natural reaction this is usually defensiveness. We think that if we ignore poverty or if we truly admit that we desire wealth we are somehow selfish or choosing to be ignorant to the suffering of others.

You can still care about others, still manage your money wisely, and still not put all of your focus and attention into matters of poverty and cheapskate-ness.

Instead, learn how to properly focus your money mindset so that you are rarely thinking about money at all — especially in a stressful way!

You will lose out on time

It takes a lot of time and focus to research sales, clip coupons, and dumpster dive. Ha. I’m only kind of kidding.

The amount of time I spent in my life trying to save a few dollars could have been better used learning how to make money in my sleep.

This phrase is kind of cheesy and overused but it’s a very true, very possible statement. Things like investing and passive income are overwhelming to people. It’s a scary thing to understand so most people choose not to take the time to do it.

I used to be one of those people.

I let myself believe that the key to more money was double coupons and shopping less. Well, to be fair, shopping less has been pretty helpful. However, the true key is learning how to wisely invest. Here is a super-simple plan for beginner investors.

Beyond that, here are some investment books I recommend looking into rather than spending your time on cheapskate thoughts.

Wealthy people focus on big wins

Right alongside the whole investment thing, it’s so important to focus on big wins rather than small savings.

It might be easier to be excited about saving 30% at Kohls instead of understanding how to gain 7% or more through investing. But the thing is, if you truly want to build wealth, this is something that you need to do.

If this feels totally overwhelming, I get it. I would be lying if I told you that I could spout off every single bit of investment advice I have taken in. I can’t. I literally studied the books long enough to diversify my husband’s 401K and open myself up a retirement account.

For all things investing and easy financial plans, check out the books above.

More big money wins

Living below your means – when you cut back on things that aren’t really adding to your life, you have the potential to get ahead financially and spend lavishly on the things you love the most

Making passive income – learning to make money is easier than ever thanks to technology. There are so many potential ways to make passive income that it’s insane. For example, after starting this blog, I was able to bring in an additional $1,000 per month passively after less than a year.

Saving wisely – A lot of times saving gets a bad rep. It sounds like a big pile of no fun. But here’s the thing, after investing and saving for emergencies, you can create savings accounts that are fun to watch grow, like saving for that Hawaiin vacation you keep dreaming about. Try starting with a Savings Builder account — they pay you to save with only $100 per month!

These are only 3 ways to start thinking bigger when it comes to money, but trust me, these are great places to get started.

Budgeting vs. Cheapskate living

So one big concern is that if you stop giving your attention to all things cheapskate living that suddenly you will be more broke than ever. I would like to argue that changing your mindset will actually prove to be the most freeing thing ever.

It is still possible to have a budget without falling into cheapskate mindsets. Please don’t think I’m telling you not to manage or pay attention to your money. The exact opposite is true.

Here are some practical budgeting tips that you can put into place without obsessing:

• Know how much you make
• Know how much you spend (here’s how to do a spending plan)
• Reduce spending where you can
• Automate investments and savings
• Enjoy your money!

Can you budget and still enjoy life?

If you really want to better understand how to have a budget and still enjoy your life, check out my Bucket List Budget course that is designed to help you balance joy and money.