2705: 6 Ways Being Cheap Can Cost You Money by Michelle Schroeder-Gardner of Making Sense of Cents

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[00:00:58] This is Optimal Finance Daily, Episode 2705,

[00:01:02] Six Ways Being Cheap Can Cost You Money by Michelle Schroeder Gardner of MakingSenseOfSense.com.

[00:01:08] And on your host and personal finance enthusiast, Diana Mariam.

[00:01:12] We're going to jump right into our next post as we optimize your life.

[00:01:16] Six Ways Being Cheap Can Cost You Money by Michelle Schroeder Gardner of MakingSenseOfSense.com.

[00:01:28] Back in August, I spent $160 on a hotel that was significantly cheaper than the ones surrounding it.

[00:01:34] I was hoping that I found a deal. Of course, it backfired on me.

[00:01:39] In that post, I mentioned the reasons why we left the hotel just minutes after we checked in,

[00:01:44] including there being blood splatters in the hotel room.

[00:01:47] Yet they still would not give us a refund.

[00:01:50] We've since disputed the charge on our credit card, but I'm still not sure how it's going to turn out.

[00:01:55] Many people each and every single day make the mistake of trying to save money,

[00:01:59] yet end up wasting money in the end.

[00:02:01] I'm guilty of doing this.

[00:02:03] Many times I go the cheap route because I hope it will work out my favor in the end.

[00:02:08] Well, I've been wrong on many occasions.

[00:02:11] Here are six ways being cheap can cost you money.

[00:02:14] Number one, buying cheap clothing.

[00:02:17] This is a bad habit I just cannot seem to kick.

[00:02:20] I'm guilty of shopping at stores like Forever 21 and buying extremely cheap clothing that won't last past one year.

[00:02:27] Instead, I need to focus on buying clothing that will last longer.

[00:02:31] It'll save me money and then I won't have to buy the same clothing items over and over again.

[00:02:35] And I can also save time because I won't have to go shopping as often.

[00:02:39] Number two, skipping insurance.

[00:02:42] Whether we're talking about health insurance, life insurance, car insurance, home insurance, or something else,

[00:02:48] usually it's a good idea to get insurance.

[00:02:51] Unless you can self-insure, which most people cannot,

[00:02:54] then buying insurance can save you money and a lot of stress in the long run.

[00:02:58] If something large comes up, then it can ruin your finances

[00:03:02] and bury you in debt if you don't have the correct form of insurance.

[00:03:06] Number three, shopping on deal websites.

[00:03:09] I used to hop on Groupon every single morning.

[00:03:12] Yup, every single morning.

[00:03:14] It was a horrible habit.

[00:03:16] I always wanted to see if I could find any deals

[00:03:19] and I would hop on any good deal that I could find.

[00:03:22] Sad to say, this was a huge waste of money.

[00:03:25] I ended up buying Groupons just to buy them because the amount of money I was saving.

[00:03:29] Instead, I was wasting money on things I didn't even need.

[00:03:33] Number four, driving a far distance to save pennies on gas.

[00:03:38] There are many gas apps and websites out there right now.

[00:03:41] With how expensive gas costs, it makes sense.

[00:03:44] However, for the most part, gas usually does not vary by much from gas station to gas station.

[00:03:49] Yes, it can make sense if you're going to be near the gas station with the best value.

[00:03:53] However, I personally know someone who will drive miles and miles

[00:03:57] to save a few pennies on each gallon of gas

[00:04:00] and in the end, if this person would actually calculate their savings,

[00:04:04] they would probably realize that they're wasting time and money

[00:04:07] by driving to the farther gas stations.

[00:04:10] Number five, thinking DIY will always save you money.

[00:04:14] DIY will not always save you money.

[00:04:17] This is something many people don't realize.

[00:04:19] If you don't have the patience or skills to do a DIY project,

[00:04:23] you may find that you're wasting both time and money.

[00:04:26] And number six, neglecting routine maintenance.

[00:04:30] Whether it be for your house, your car, or your health,

[00:04:33] there might be something that you may be forgetting or neglecting to do.

[00:04:37] These could include fixing a clogged drain before it gets out of hand,

[00:04:41] repairing a leaky pipe, replacing tires on your car,

[00:04:45] getting oil changes when they need to be done,

[00:04:48] going to the dentist every six months, and much, much more.

[00:04:52] With your maintenance, you always want to make sure you do it

[00:04:55] and that you don't do it cheaply.

[00:04:57] Yes, you can do things frugally.

[00:04:59] Just make sure they're done high quality.

[00:05:01] You don't want to skip maintenance and have to pay more money later

[00:05:04] because a major problem could have been prevented.

[00:05:06] Or do a shoddy maintenance job

[00:05:08] and find out the whole thing needs to be completely redone.

[00:05:11] An example would be skipping going to the dentist for years

[00:05:14] so that you can save money.

[00:05:16] Then after you finally go, you find out you could have saved money

[00:05:19] and some of your teeth by visiting the dentist regularly for cleanings.

[00:05:23] How has being cheap cost you money?

[00:05:29] You just listened to the post titled,

[00:05:31] Six Ways Being Cheap Can Cost You Money

[00:05:33] by Michelle Schroeder Gardner of MakingSenseOfSense.com

[00:05:36] and I'll be right back with my commentary.

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[00:07:29] I'm a big fan of buying high quality durable items

[00:07:32] not only because I know they'll save me money in the long run,

[00:07:35] but also because I really hate shopping.

[00:07:37] It drains my energy. I'm extremely picky.

[00:07:40] And I get very annoyed when I don't feel like

[00:07:42] I'm getting an appropriate amount of value out of a purchase.

[00:07:45] Sometimes you'll have to spend more for quality items

[00:07:48] that will last a long time.

[00:07:50] But that isn't always the case.

[00:07:52] For example, I wore this same one-piece black bathing suit

[00:07:55] that I bought from Target for 13 years.

[00:07:58] Last year, I went on a beach vacation

[00:08:00] and it was clear that this suit was on its last leg.

[00:08:03] It still looked fine, but it was a bit stretched out

[00:08:05] in the wrong places, and it was simply time to get a new one.

[00:08:08] But that thing lasted me for over a decade,

[00:08:11] and I probably spent less than $20 on it.

[00:08:14] I replaced it with a suit I bought off of Amazon for $30.

[00:08:18] I also replaced my hiking boots that I bought six years ago.

[00:08:22] These are the boots that I walked the Camino in,

[00:08:24] for those who don't know, the Camino is a 500-mile trek

[00:08:27] across Spain that I hiked in 38 days back in 2017.

[00:08:31] They were the first hiking boots I've ever bought,

[00:08:34] a good old reliable pair of marbles.

[00:08:37] Between my training, the Camino, and the many hikes

[00:08:40] I've done over the last six years,

[00:08:42] I've hiked thousands of miles in those boots.

[00:08:45] And while the soles are still perfectly sound,

[00:08:47] the fabric of the boots was beginning to fall apart,

[00:08:50] so I knew it was time to put them to rest.

[00:08:52] I simply bought the exact same pair for $145.

[00:08:57] And that'll do it for today.

[00:08:59] Have a great day and weekend,

[00:09:00] and I'll be back here tomorrow where Optimal Life awaits.