With the economy being what it is, pretty much everybody is trying to cut back. Big (skipping the annual vacation to Disney World) or small (having your kids brown bag it instead of buying hot lunch at school), it seems like finding ways to save money is a common theme.
But is it possible that some penny pinching strategies can backfire in the long run?
Perhaps so.
Money Ning recently ran a piece featuring five supposedly common ways to further stretch a dollar that can actually …
… result in higher costs when you put in the bigger picture.
1. Neglecting Your Health
Poor health can not only lead to high medical bills, but it can also cut careers short and leave us unable to care for our families. While there is no possible way to prevent every single illness or accident, regular checkups and a healthy lifestyle can go a long way towards improving our odds of staying fit and active for decades.
Unfortunately, in the USA, if you are without health and dental insurance, getting regular, high quality preventative care can be out of reach. If this is the situation for you, be proactive and look for community resources that can help you get the care you need. In many areas dialing 2-1-1 can get you free assistance in finding these resources. Don’t wait for an emergency to find out about what help is available for you.
This is absolutely true. Even for those of us with good medical insurance (I pay just $5 for a doctor’s visit), it’s really easy to put off calling your regular doctor because you’re too busy or whatever … only to end up in the emergency room during the weekend getting antibiotics for strep throat or something. My emergency room co-pay is $25, still not a huge deal in the great scheme of things, but seeing a regular old $5 doctor is a lot more logical.
And dental costs?
Because of the financial debacle following my divorce (my ex decided to stop paying the bills, so I’ve literally spent years getting everything paid off), the dentist was low on the priority list as my work doesn’t offer dental insurance.
I’m paying the cost—literally and figuratively—now as I’ve spent thousands of dollars this summer on dental work that could easily have been avoided with regular dental care.
2. Always Buying “Cheap”
I think most people understand that always going with the cheapest option without considering quality is a mistake. Not only does it cost more in the long run, but you can wind up cheating yourself out of things that you might really enjoy.
I’m not sure I agree with this one necessarily.
I mean, is there a serious difference between Hellman’s mayonnaise and the store brand?
The only possible argument I see here is clothes, where you’re certainly going to get better quality at more reputable retailers. Even there you’re gambling when you put kids into the equation, though.
My younger daughter is rough on clothes. Really rough. She blows out the knees in jeans from Macy’s almost as quickly as the ones from Wal-Mart or Old Navy, and she’s a clumsy eater, so there’s a constant risk of food stains.
Then there’s the vacuum situation at my house. I once had a really expensive high-powered cleaner (clearly a gift), and it didn’t last six months. I took it to a repair shop, and the cost to have it repaired would have been significantly more than a brand new machine.
I end up buying a cheaper vacuum every couple of years, and I don’t think it’s yet totaled the cost of that allegedly super-vacuum.
3. Neglecting Maintenance/Upkeep
I suck it up and get that transmission fluid changed when my manufacturer recommends it be done and spring for the annual HVAC cleaning and check-up. You can look for ways to do it yourself and save money, but don’t ignore it all together and hope for the best. In some cases, neglecting maintenance can put your safety at risk, not just your bank balance.
This is also true, largely for the same reasons that taking care of your health when problems are small keeps major problems that can no longer be ignored from cropping up.
4. Cheating Others
We’ve all got our own lines when it comes to taking advantage of deals and driving a hard bargain. I can see how certain terms and restrictions can be open to interpretation and how one person idea of a smart business decision can be another person’s idea of taking total advantage.
However deliberately circumventing the rules and lying are never okay and doing it is just as bad as shoplifting. My rule of thumb is if I wouldn’t happily admit to my mother what I did to save money; I shouldn’t be doing it at all.
My morals and values would never allow me to cheat others, but I can see how it would be tempting, I suppose.
How many stories have we all heard about the collection jar for a family who lost their home in a fire or a child with leukemia being stolen?
It’s never a good idea to mess with karma, plus … that kind of things is just wrong.
5. Never Giving
We all have times in our lives where we can’t afford to give and might even have to receive. The problem comes when you never, ever feel like you have enough to share and be generous. Holding on too tightly to what you have doesn’t make you feel more secure, it makes you feel more anxious.
When you can, allow yourself the joy of giving with an open heart to somebody who could use it. Be smart about how, what and when you give, but do look for ways to incorporate generosity in your life.
If for no other reason, giving to others can make you appreciate what you have … and, hokey as it sounds, that makes you a rich person indeed.
And from a purely financial standpoint, most charitable donations are tax deductible.
So there you go, five things to avoid when trying to save money. Not a bad list, in my opinion.
Your thoughts?
