Yahoo Finance 11 Things Frugal People Always Invest In
When it comes to finding the best deal for your buck, frugal people know a thing or two about stretching a dollar.
“Frugal folks don’t just scrimp and save; they strategically invest in things that bring long-term value and cut down on future costs,” said Andrei Vasilescu, the CEO of DontPayFull.
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“Remember, being frugal isn’t about deprivation; it’s about strategic choices that build long-term wealth and well-being. So, invest in experiences that enrich, quality that endures, skills that empower and knowledge that guides you, and watch your financial future blossom, one smart choice at a time.”
Here are some more gems in frugal people’s treasure chests, according to experts.
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Investing in Education
“Think of learning as your lifelong buddy,” said Karina Newman, financial expert and owner of iBuyers.
“Frugal folks see education not just as school stuff but as a way to boost your skills and make you more valuable in the job market,” she explained. “It’s like giving your future self a high-five because you’re always ready for new opportunities.”
Vasilescu agrees, noting that those who are frugal will often invest in learning new skills, from personal finance to home repairs. He said this empowers them to handle situations themselves, avoid expensive services, and even open doors to side hustles or career advancement.
“Frugal folks are avid readers and information seekers,” he said. “They learn about budgeting, investing and savvy shopping tricks.”
This knowledge becomes their secret weapon, he explained, helping them make informed choices to stretch every dollar.
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Quality Over Quantity
“You know that saying, ‘buy cheap, buy twice’?” Newman said.
She said frugal people would rather drop some extra cash on quality items that last forever.
“It’s like having a trusty sidekick that never lets you down, saving you from the hassle — and money — of replacing things all the time,” she said.
Vasilescu similarly noted that frugal folks understand the value of not buying cheap.
“They invest in well-made items that last, from sturdy shoes to timeless clothing,” he explained. “It might cost more up front, but they save in the long run and avoid the environmental footprint of constant replacements.”
Health as a Priority
“Picture your health as your superhero cape,” Newman said. “Frugal peeps wear it proudly by eating well and staying active. Why? Because it’s not just about feeling good; it’s about dodging those pesky medical bills.”
She emphasized that being healthy isn’t just a mood; it’s a smart money move.
“Your health is your wealth, and frugal living includes investing in it,” said Mikayla Reynolds, owner of Cash Offers. “Regular exercise, a balanced diet and preventive healthcare might seem like expenses, but they’re an investment in long-term savings by reducing medical costs.”
Energy-Efficient Appliances
“Ever heard of appliances on a diet? Frugal folks love them,” Newman said. “Sure, they might cost a bit more up front, but they sip electricity like it’s fancy tea. It’s like having gadgets that save you money on your monthly bills, making you feel like a financial wizard.”
Reynolds also noted that frugal individuals are all about the long game, especially when it comes to utility bills.
“Investing in energy-efficient appliances might cost a bit more up front,” she said, “but the savings add up over time through reduced energy consumption.”
Quality Clothing
Frugal fashion isn’t about being cheap — it’s about being smart, Reynolds said.
While investing in quality clothing may seem like a stretch, she said, durable, timeless pieces outlast fast fashion trends, giving you better value in the long run.
Experiences Over Possessions
If you imagine memories as treasures, Newman said, then frugal folks are the best treasure hunters.
“They’d rather spend on experiences that make unforgettable stories than on stuff that collects dust,” she explained. “It’s like having a collection of adventures rather than a pile of things. Each memory is a badge of honor.”
Vasilescu equally noted that frugal people will often skip fleeting trends and invest in meaningful experiences like travel, learning a new skill or creating memories with loved ones.
“These investments enrich their lives and offer lasting joy, unlike another pair of shoes.”
Time, the Ultimate Currency
Frugal people guard their time fiercely, Vasilescu said, often prioritizing tasks that bring the most value. For example, they’ll prefer to learn to cook, fix things themselves or master DIY projects — saving money and empowering them to take control of their time.
Superior Mattress
A restful night’s sleep is invaluable, and thrifty individuals know a well-chosen mattress can enhance both sleep and general well-being. A quality mattress lasts a long time, so this is one indulgence that you’ll appreciate every night.
Sturdy Cookware
Frugality is based on cooking at home, and having dependable cookware is crucial. When properly cared for, appliances such as a sturdy blender, cast-iron skillet or excellent chef’s knife can last for decades — making it a money saver in the long run.
High Quality Footwear
Budget-conscious consumers frequently spend more money on high-quality shoes because they know these shoes last longer and offer better support than less expensive options. Experts advise that investing in quality footwear for work, hiking or formal occasions can be a smart move.
Investing in Tangible Assets
“One thing I’ve noticed from talking to a broad mix of investors over the years is that frugal people tend to invest in real, tangible assets such as gold or real estate,” said Sam Hodgson, pensions expert at SIPP Advice.
He said frugal people tend to be risk averse. “So the idea of investing in shares or, heaven forbid, cryptocurrencies can be their worst nightmare.
“Gold is historically stable as an investment, often outperforming stock markets in times of uncertainty, such as the recent global pandemic.”
He noted it’s also a physical and secure asset that’s typically held in a vault for you by a gold provider, which is very different than a share that is a portion of ownership in a company operated by people you don’t know.
“With gold, you know exactly what you’re getting when you invest in it,” Hodgson said, “which I find aligns with the mentality of frugal investors.”
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