12 ‘Necessities’ Frugal People Simply Won’t Buy

There are many things that people consider a necessity that frugal people simply won’t buy. And no doubt you must have been in your friends’ homes and seen some things that you think were unwise or even foolish.

Now, having left this consumer trap 3 years ago to focus on wealth building, I can list over 100 things that I don’t buy today, but I’ve narrowed it down to 12—The Dirty Dozen. 

12 common things that I don’t buy today as I focus on Building Wealth for my family. And to add value, I’ve included a special number 13 at the end, but it’s a bit controversial. 

Now it would save if not thousands of dollars a year, but it could be one that some people would regard as a necessity.

 

12 ‘Necessities’ Frugal People Don’t Buy

 

1. An Expensive Home

One of the greatest measures of success here in North America is the size and the grandness of your home. 

We are spoiled for space as the houses and their yards are huge. Now I have lived in London, where famously our houses are small, the roads are small, and the little cars are small. It really is like the Shire over there. In some places, you may even see a hobbit. 

Now here in Canada and the states, houses are much, much bigger. People have enjoyed years of low interest mortgages, pushing the monthly salary to the max. 

Now with the higher interest rates, the default levels are off the scale. People have stretched themselves to the biggest properties they can’t afford, and it’s now a major problem.

Being Frugal means not getting the biggest house you think you can afford. Being comfortable and living affordable is the key. 

30% of your salary to cover your rent or your mortgage is a good measure; less is even better. Don’t follow the crowd and be house poor.

 

 

2. TV Subscriptions

Now subscriptions for TV services can have a double impact on your life. Not only the cost of having the essential subscription to get that TV series you are watching, but also they suck you into the couch and keep you there for hours. 

Nothing will harm your ambition more than the comfort zone, and the TV will suck you in your comfort zone and drain you of your dreams. 

Even if you watch TV for just 2 to 3 hours a day, that’s 15 hours Monday to Friday you have lost that you could be building your wealth.

I originally had five subscriptions and have cut it down to two, one of which is Amazon Prime which you get part of a package, and the other one of course is Netflix. 

So now I spend $140 per year instead of $660, and I am much less tempted to spend an evening watching the tube—although I must admit we are a bit partial to Downtown Abbey.

 

3. Starbucks Coffee

Maybe there’s an argument to say that having a coffee each day will energize you and you’ll be more productive. 

However, I’m one of those guys that like to add up the cost of 5 to seven coffees a week and put that into my TFSA investment account. 

I like to watch those consistent small amounts grow and compound over time. And when I buy a new truck in 10 to 15 years time, I can honestly say my coffee paid for it. 

But as one of our greats, Kevin O’Leary, says: why pay $5 to $7 for something each day, I can make it home for a few cents?

 

4. Brand New Car

Now this is another big purchase and in my opinion should be avoided. Don’t be lulled into a payment plan for a new car that will add a large monthly cost to your expenses. 

It will add a financial stress to your wallet and a commitment for years. And if you’re factoring the high interest rates and the high car insurance, this is now a poor choice. 

And it’s not just the interest rates on your loan you should be concerned about. Don’t add that premium to your monthly expenses; it’s just not worth it.

And as an investment, it’s one of the worst ones you can make, with the value of the car dropping significantly as soon as you drive it off the lot. 

Get a secondhand vehicle that will get you from where you need to go 90% of the time. Frugal people are not interested in showing off a shiny new car, and neither should you. 

Just remember, one day the income from your assets will buy you a brand new shiny car. But until then, make a smart choice and a good Financial one.

 

 

5. Anything Convenient

Now you know the story here: you can have time or you can have money, but you can’t have both. 

Paying for convenience is at epidemic levels these days because we’re all so busy with work, family, side hustles, and all the things that get in our way. 

We pay for lunch, maybe even breakfast. We have a coffee, we have a sweet treat. It’s all convenience. When we come home, we have people cut the grass, clean our house, even run errands for us.

Frugal people will prioritize their time and do the groundwork. Breakfast and lunch could be easy made at home. I’ll do a meal prep on the Sunday at home for the week. Coffee and tea can also be made at home. 

And if you want a snack, buy a big multi pack, keep it at home, and take a couple with you each day. 

Need to cut the grass? It’s good exercise; do it yourself. If you put your mind to it, you’ll find the time and you prioritize these, and you’ll save hundreds of dollars a month by doing so. 

Avoid paying for convenience by putting a bit of time aside to do the prep. And as a bonus, those savings will mount up and they can be invested.

 

6. Consumer Debt

This is a definitive destroyer of Financial Security and general happiness. Consumer Debt is what keeps the majority of people broke for most of their working lives. 

And the real Enigma is, Consumer Debt is not even a necessity. We can happily live without it; we just need to live below our means and not spend excessively. 

But people are consistently stretching themselves for more and bigger. They will live on a credit card for clothes, for eating out, vacations, and consumer products they know will financially ruin them for years, even decades, and often for things we don’t even need. 

It can suffocate you and lead you to health issues caused by stress. This one’s really important, so be frugal with your spending; you won’t ever need Consumer Debt.

 

 

7. Lunch Time

Now I touched on this previously, but this seems to be a big thing for most people. And I say that because of the sheer amount of takeout places anywhere I go, it seems most people are eating out for lunch at least 5 days a week, averaging $15 a day, Couple this with a coffee and an afternoon snack, we are spending close to $30 a day, and we haven’t even got home for dinner yet.

I did the calculation. That’s $7,500 a year. Now if you took $7,500 and put that into an investment account with an average return of 9%, after 15 years you’d have $220,000. 

And half of that is pure interest. 

Now if you held that for 25 years under the same conservative Outlook, you would have $635,000. That’s almost two-thirds of a million dollars from giving up your lunch, your coffee, and your little snack bar.

Now this is just an illustration to show you how small things can make a massive impact over a period of time. 

So be frugal. Prepare your lunch and your snacks at home. Buy yourself a decent coffee machine. Smart choices now means you can have all the nice things down the line.

 

8. Bottled Water

Now if I could go back 25 years and tell everybody on the street that America’s going to spend $68 billion in 2024 on bottled water, I’d probably be arrested. In some cases, it’s not even spring water; it’s distilled water. It’s literally from the tap at a cost of $2 to $3 a bottle. It really is quite insane. 

And before anybody suggests I’ll buy a 24-pack, do you know the impact of all that plastic on the environment? It’s pretty bad. Bottled water is not only a bad financial habit, but it’s also a pretty bad ethical one.

Although we hope most water bottles are recycled, we are only just learning the extent of microplastic in our food chain and in ourselves. 

I’m sure we’ve all seen or heard of news reports of actually finding these microplastics in our body. 

Ditch the water bottles. Save your money and save the planet. Get a gym bottle and fill it with water, and feel good that you’re not supporting a morally corrupt industry.

 

 

9. Overloaded Shopping Carts

Now how many times have you gone into a grocery store to get a couple of things and come out $200 poorer? Even worse, have you ever been shopping when you’re hungry? Take it from me: don’t do it. 

Now in most households, food is a necessity. But in our house, we also use it as a treat when we hit a goal. When we do go shopping, we make a list and we don’t get swayed by the marketing at the store or our hunger. 

We buy a lot of fruit, veg, and fresh groceries. We cook at home for dinner but also meal prep for work. We do Sunday morning pancakes and cartoons for the kids, and we have tea and coffee and hot drinks too.

Now we spend a little bit more on fresh produce at the store, but we save on hundreds of dollars a week on takeout and going out for Sunday morning pancakes. 

So when you go shopping, make a list. This truly helps. An overloaded shopping cart will deplete your wallet.

 And stay away from all those pre-made expensive meals. Make it yourself, enjoy it, and have fresh food.

 

10. Cell Phones

Now I have this down to a championship level of frugality because I still have my trusty Blackberry. It’s even got keys. 

Now in all seriousness, I often feel that some people have the latest phones as a status symbol. The cost of the latest Apple phone is astronomical. 

It’s an interconnected world and we need a smartphone, but like TV, the more time you spend on it, the more entrenched you’ll get into your comfort zone.

And as to the latest models, when you look into the detail, there’s really not much difference between today’s model and one from 2 or 3 years ago, except the price. That’s a pretty big difference. 

My suggestion: buy a lightly used one on Facebook Marketplace or on eBay for a fraction of the cost. 

And if you do feel you need to get the latest model on a plan, check the fine print; you may be paying more than retail for that phone.

 

 

11. Expensive Vacations

Most people love going on vacations, and we do need a break from the hustle and bustle from our busy lives. But it can mean a high cost and a big debt in your finances. 

A two-week excursion across Europe or a resort stay in the tropics can mean thousands, even tens of thousands of dollars. 

I used to take my kids to Disney or Universal for one week all inclusive. It would cost about $10,000, and I’m very embarrassed to say that one year we did it twice: one to Disney, one to Universal. 

Now at the time I didn’t think anything of it because of my broke thinking mindset, but looking back now, what an overindulgence.

Now we still enjoy our vacations through the year, but we spend thousands of dollars less. We travel around and stay with family and friends and enjoy new experiences. 

So now we enjoy vacation time and have plenty left to invest for our future. Be Frugal but still ensure you get quality vacation time.

 

12. Expensive Clothes

Now being Frugal doesn’t mean cheap. It’s defined on Google as being careful about spending money or only using things when you need to. 

Now four years ago when I was living my broke lifestyle, I would collect shoes—Nikes. I would also buy at least two or three clothing items a month. I worked hard and I deserved it. 

But now I try and live a Frugal lifestyle and I rarely buy anything at all. But if I do feel I need something for the gym, I’ll shop around and see if I can find a sale. 

The point is, I’m not trying to impress from dress. As you can see, I wear this type of clothing because this is what I wore to my renovation work and I choose to work every day. 

So don’t be broke buying clothes and shoes you don’t need. Don’t try and wear Rich; it’s an illusion. Build wealth and then treat yourself. Your investments will pay for all of it.

 

Bonus entry 13. Pets

So this may not sit well with many pet owners, but hear me out. 

Now if you have a pet like a dog or a cat, I’m not suggesting you get rid of them. I understand they’re part of the family and provide a great source of love and comfort. 

But if you are considering getting a dog or a cat or even an exotic animal, you need to consider the cost, the time they will take from you, and the responsibility they will demand from your life. 

Their food and their vet cost can soar. And when you go on vacation, there’s a cost there too. 

So if you haven’t got a pet yet, just consider if it’s a good time for the emotional, the time, and the monetary investment. 

Maybe at a later point when you have more time in your hands is maybe the right place to take that plunge.

 

Conclusion

So there’s the 12 Necessities that frugal people will not have, and the extra controversial one. Now they’re all considered in our financial plan and part of our strategy to become financially free. But are they in yours? And do you have others as part of your Frugal lifestyle?