Of course, we all like saving money and most of us believe that involves choosing the cheaper option or trying not to spend at all. Unfortunately, being too frugal can actually be more expensive than you might realize. Those little expenses add up! So, let’s look at thirteen reasons why being a cheapskate will cost you so much more.
Featured Image Credit: AndreyPopov /Depositphotos.com.
Cheaper Products Break Down More Often
When you go for the bargain bin items, you might save a few bucks now but those items aren’t made to last. Think about it—you buy a cheap toaster and it breaks after a few months, so you buy another. And the cycle continues! You’ll end up spending more on replacing cheap toasters than the cost of buying a decent one in the first place!
Cost of Frequent Repairs
Similarly, cheap stuff breaks. A lot. And usually, fixing it isn’t cheap—sometimes, the cost to get a cheap item repaired is more than the thing is actually worth. You end up stuck in this annoying loop of deciding whether to fix it again or buy a new one. Either way, it’s costing you money instead of you saving it.
Missed Bulk Buying Opportunities
You might’ve ignored those bulk deals at the store because you didn’t want to spend more cash upfront. While it might seem like you’re saving money, you’re actually missing out on lower prices per unit. Buying in smaller quantities can cost you more over time than if you’d just stocked up. Go ahead—take advantage of those bulk savings!
Higher Energy Costs from Inefficient Appliances
Sticking with older & cheaper appliances seems like a bargain. But here’s the kicker—they use more energy and when you get your utility bill, you pay more than you would with a more efficient model. Over a year—or even a few months—those extra dollars add up to more than the cost of buying new appliances.
Health Costs from Cheap Eating
We’ve all been tempted to save money by eating cheap, processed foods. Sadly, the real cost is your health. Eating too much junk can cause health problems down the road & this means more trips to the doctor—and more medical bills. That’s tough on your body as much as on your wallet.
Lost Time and Productivity
You might’ve tried saving a few bucks by using a cheaper yet less effective product. For example, that cheap paint may have needed three coats instead of one which is extra time & frustration. Time is money and wasting it on ineffective products can cost you more than you might think.
Travel Costs Due to Inadequate Planning
Cheapskates usually book the least expensive flights, although these often have longer routes that include more layovers. All that waiting eats up your time—but that’s not all. Any savings you make, you’ll end up spending on meals or even a hotel room if you’re stuck overnight. So much for saving on travel costs!
Higher Interest Rates from Avoiding Credit
Most financial advisors will tell you to avoid credit cards to stay out of debt but that also means you’re not building credit. Without a solid credit history, you might end up with higher interest rates on a car loan or mortgage. Over time, this can add thousands of unnecessary costs to your bill.
Penalties for Skimping on Routine Maintenance
Ignoring regular maintenance on things like your car or home to save money is a gamble that’s not worth risking. If you don’t keep up with it, you could face huge repair bills later, even for something as insignificant as a small leak. As such, you should do regular checks—and put in the money to repair them!
Decreased Home Value from Cheap Fixes
Likewise, using cheap materials for home repairs or sticking with quick fixes can backfire when you decide to sell. Potential buyers can spot the shortcuts & might negotiate down the price—or worse, choose another property altogether. As such, those savings today could cost you big when it’s time to sell.
Insurance Costs from Lower Coverage
What’s wrong with going for the cheapest insurance? Well, quite a lot—especially when you actually need to use it. Without the right coverage, you could end up paying a lot out of pocket for accidents or health issues. That’s when you realize how expensive skimping on insurance can truly be.
Legal Risks from DIY Solutions
You should be careful when handling legal stuff on your own to avoid attorney fees because any mistakes in legal documents or tax filings can mean fines. You may also have to deal with other legal issues, too. Sometimes, paying a professional upfront can be a lot cheaper than dealing with the fallout from a DIY disaster.
Loss of Efficiency from Outdated Technology
There’s no reason to hang onto old technology. Sure, you avoid the cost of an upgrade but outdated technology can slow you down, which reduces your productivity at work or home. As such, investing in newer technology can actually save you time & money in the long run. It’s a double win.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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