A Rational Cheapskate’s Guide to Saving Some Money

A few things I picked up from 25 years of balancing desire, money, and relationships

Ask any of my friends and they’ll tell you that I’m one of the most generous people they have ever met. If there was ever a bill to be paid or a ticket to be bought, I would be the first to generously offer the privilege of paying to someone else. Unfortunately, those that don’t understand this generosity, mistakenly call me a cheapskate. In reality, I like to consider myself a rational cheapskate.

Being a rational cheapskate is a lifestyle that few can mesh with. It takes years of hard training and mental fortification to build up the ability to say no to the finer things in life, convince someone else to get you the finer things in life, and know when to stop being so cheap. It is an everyday struggle to balance material desires, money, and relationships. I’ve been at it for 25 years and I’m still learning new tricks.

Let me share a few things I have picked up so far.

1. Don’t carry a lot of cash

Going out to eat or shop can be very expensive. It gets even more expensive when you are out with your friends. Peer pressure can force you to spend way more than you were expecting. Usually, a cheapskate would avoid these situations or manipulate their friends to pay for them. But I have a more rational solution.

If I ever go out to eat or shop with my friends, you can be sure I have the lightest wallet. When it’s time to split the bill, I pull out my wallet and give them everything I have. This way I’m not a complete freeloader but I have an excuse to save some money in the end. There are no hard feelings either and sometimes they refuse my share out of pity.

P.S. If you want some cash in case of an emergency, your shoe can be a really convenient hiding spot.

2. Haggle with class

Haggling can be annoying at times but you can’t argue with the results. I’ve saved 10% here, 20% there, and 5% everywhere. Over time it adds up to a lot of money saved up. A cheapskate would haggle to the last penny, but a rational cheapskate thinks long term.

The trick to haggling is to haggle with class. Haggle with a smile and never be rude to the store owner. Haggling is an art where both customers and salespeople should leave satisfied. So don’t go overboard with it and you might even become friends with the owner. Then you don’t have to haggle, just ask for a loyal customer discount.

3. Do you really need that?!

We live in a world where we are flooded with marketing and advertisements every second of every day. It can be a bed cover that never has to be cleaned, a sugar drink that can revitalize your sex life, or an automated shoe polisher that sings country songs on repeat. It’s everywhere and there is no escape.

The adverts prey on our desire for satisfaction and gratification and are so good at making us want things that we really do not need. A cheapskate would simply say no. A rational cheapskate asks questions.

Before you make a purchase, ask yourself if you really need it.

That question has stopped me from spending thousands on useless junk including a $1000 dollar computer component I couldn’t really use, a leather jacket that would be way too hot in the tropics, and the subscription to a video editing course when YouTube tutorials were already a thing.

4. Don’t impulse buy

Remember those old Telemarketing lines?

“Buy now and get 50% off including free shipping!”

“If you place your order in the next 30 minutes we’ll throw in a lifetime supply of dishwasher fluid!”

“The first 10 people to order will have all their life problems solved!”

They try so desperately to make you buy quickly, leaving you with no time to think or consider your options. There is so much hype built up that you feel like you have to purchase it now or your chance will be gone! It’s nerve-wracking sometimes and it can be very hard to control.

That’s why I follow these two rules before I impulse buy.

The 30-minute rule

I use this rule when I want to buy something that’s not expensive like a video game or order a Ferrero Rocher milkshake from Ubereats. I take 30 minutes and do something else to keep my mind occupied. After the time has passed I see if I really want it. Nine times out of ten, I realize I didn’t need it.

The 2 weeks rule.

This is similar to the first rule but used when you want to buy something expensive. Take a week or two and see if you still want it in the end. Take the time to consider your options and weigh the pros and cons. You’ll either find a better/cheaper option or end up not needing it at all. There are many unbought iPhones and laptops at the Ranasinghe residence due to this.

Hype and marketing can push you to the edge but taking some time can help you make a rational choice and save some money

5. Another man’s trash could be your treasure

If you want something, you can save a buck by buying secondhand. My first computer was a system I built from used parts and it lasted me for three years. It was also half the price.

But if you are buying used, go and check out the product first. Don’t be fooled by the pictures online. Go meet the seller. Who knows, when you meet them in person you might be able to lower the price through a bit of haggling too.

6. If you are buying, go for quality

Ok, so you took some time, asked the question, and don’t want something used. A cheapskate will buy the cheapest thing out there and call it a day but going for quality can go a long way.

I can’t tell you how many times I’ve cheaped out on shoes and bags only to have them tear and break early making me spend more money. A quality pair of shoes might cost more but they usually last longer. Think of it as an investment. You are saving up on all the other shoes you won’t have to buy in the future. Personally, I only have two pairs of shoes and I’ve used them for five years and still going strong.

7. Do it yourself

A lot of things can be done cheaply if you put in a little time and effort to learn a new skill. But don’t do it only to save a buck. Be a little more rational and think of it as self-improvement or expanding your skillset.

I took the time to learn how to cook, edit videos, and even dabbled in carpentry. Now I save some money and offer these skills to make money too.

8. If you can’t do it alone, ask for help

Never forget to ask for help. You have your friends, family, and your peers and they all have their own strengths. Try asking them for help if you are stuck and you’ll be surprised at how helpful people can be — for free! You can save a lot and spend time hanging out. It’s a win-win situation.

But a rational cheapskate knows that this is a two-way street. Give a helping hand and assist where you can. Think of it as building the foundation for future favors — and friendships.

9. Don’t push it too far

The most important thing about being a rational cheapskate is knowing when not to be one. If we go through life only trying to save a buck and screwing everyone else over, we’ll end up with our hands full and hearts empty. Know your limits and cut down on being cheap if it means losing someone or something you love. Don’t push it. You can only get so far in life being a cheapskate. Think rationally.

Final thought

I’ve been a rational cheapskate for 25 years and I’ve always tried to balance desire, money, and relationships. Have I always been successful? No, I’ve given in to urges, I’ve spent way too much on things I didn’t need and I have hurt people I love because I was too cheap. But I am learning and it’s been a boon more times than not.

Being a rational cheapskate is a constant give and take. But in time I know I can save some money and have a good life while doing it. Thinking rationally and investing in people is the key to saving money in the long run.

Thank you for reading, Have a nice day!