3625: 6 Ways Being Cheap Can Cost You Money by Michelle Schroeder-Gardner of Making Sense of Cents

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[00:00:28] This is Optimal Finance Daily. 6 Ways Being Cheap Can Cost You Money by Michelle Schroeder-Gardner of Making Sense of Cents

[00:00:40] Back in August, I spent $160 on a hotel that was significantly cheaper than the one surrounding it. I was hoping that I found a deal. Of course, it backfired on me. In that post, I mentioned the reasons why we left the hotel just minutes after we checked in, including there being blood splatters in the hotel room.

[00:00:59] Yet they still would not give us a refund. We've since disputed the charge on our credit card, but I'm still not sure how it's going to turn out. Many people each and every single day make the mistake of trying to save money, yet end up wasting money in the end. I'm guilty of doing this. Many times I go the cheap route because I hope it'll work out my favor in the end. Well, I've been wrong on many occasions. Here are 6 ways being cheap can cost you money. 1. Buying Cheap Clothing

[00:01:29] This is a bad habit I just cannot seem to kick. I'm guilty of shopping at stores like Forever 21 and buying extremely cheap clothing that won't last past one year. Instead, I need to focus on buying clothing that will last longer. It'll save me money and then I won't have to buy the same clothing items over and over again. And I can also save time because I won't have to go shopping as often. 2. Skipping Insurance

[00:01:54] Whether we're talking about health insurance, life insurance, car insurance, home insurance, or something else, usually it's a good idea to get insurance. Unless you can self-insure, which most people cannot, then buying insurance can save you money and a lot of stress in the long run. If something large comes up, then it can ruin your finances and bury you in debt if you don't have the correct form of insurance. 3. Shopping on Deal Websites

[00:02:21] I used to hop on Groupon every single morning. Yup, every single morning. It was a horrible habit. I always wanted to see if I could find any deals, and I would hop on any good deal that I could find. 4. Sad to say, this was a huge waste of money. I ended up buying Groupons just to buy them because of the amount of money I was saving. Instead, I was wasting money on things I didn't even need. 4. Driving a Far Distance to Save Pennies on Gas

[00:02:50] There are many gas apps and websites out there right now. With how expensive gas costs, it makes sense. However, for the most part, gas usually does not vary by much from gas station to gas station. Yes, it can make sense if you're going to be near the gas station with the best value. However, I personally know someone who will drive miles and miles to save a few pennies on each gallon of gas.

[00:03:11] And in the end, if this person would actually calculate their savings, they would probably realize that they're wasting time and money by driving to the farther gas stations. 5. Thinking DIY Will Always Save You Money DIY will not always save you money. This is something many people don't realize. If you don't have the patience or skills to do a DIY project, you may find that you're wasting both time and money. And number six, neglecting routine maintenance.

[00:03:42] Whether it be for your house, your car, or your health, there might be something that you may be forgetting or neglecting to do. These could include fixing a clogged drain before it gets out of hand, repairing a leaky pipe, replacing tires on your car, getting oil changes when they need to be done, going to the densest every six months, and much, much more. With your maintenance, you always want to make sure you do it and that you don't do it cheaply.

[00:04:08] Yes, you can do things frugally. Just make sure they're done high quality. You don't want to skip maintenance and have to pay more money later because a major problem could have been prevented. Or do a shoddy maintenance job and find out the whole thing needs to be completely redone. An example would be skipping going to the dentist for years so that you can save money. Then after you finally go, you find out you could have saved money and some of your teeth by visiting the dentist regularly for cleanings. How has being cheap cost you money?

[00:04:41] You just listened to the post titled, Six Ways Being Cheap Can Cost You Money, by Michelle Schroeder Gardner of MakingSenseofSense.com. This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome? That's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome.

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[00:06:06] Use code OPTIMAL at Monarch.com to get your first year of Monarch Core half off at just $50. That's 50% off your first year at Monarch.com with code OPTIMAL. I'm a big fan of buying high quality durable items, not only because I know they'll save me money in the long run, but also because I really hate shopping. It drains my energy. I'm extremely picky.

[00:06:31] And I get very annoyed when I don't feel like I'm getting an appropriate amount of value out of a purchase. Sometimes you'll have to spend more for quality items that will last a long time. But that isn't always the case. For example, I wear the same one-piece black bathing suit that I bought from Target for 13 years. Last year, I went on a beach vacation and it was clear that this suit was on its last leg. It still looked fine, but it was a bit stretched out in the wrong places and it was simply time to get a new one.

[00:07:00] But that thing lasted me for over a decade and I probably spent less than $20 on it. I replaced it with a suit I bought off of Amazon for $30. I also replaced my hiking boots that I bought six years ago. These are the boots that I walked the Camino in. For those who don't know, the Camino is a 500-mile trek across Spain that I hiked in 38 days back in 2017. They were the first hiking boots I've ever bought. A good old reliable pair of Merrells.

[00:07:29] Between my training, the Camino, and the many hikes I've done over the last six years, I've hiked thousands of miles in those boots. And while the soles are still perfectly sound, the fabric of the boots was beginning to fall apart. So I knew it was time to put them to rest. I simply bought the exact same pair for $145. And that'll do it for today. Have a great day and weekend. And I'll be back here tomorrow where your optimal life awaits.