Key Takeaways
- Saving money is good, but not if it costs you more in long-term expenses.
- Flawed money-saving techniques include overlooking quality and not prolonging the lifespan of valuable goods.
- Others flawed steps include wasting money by trying to save money and making things rather than buying them.
Everyone loves a good deal and feeling like they’re saving money. But sometimes what appears to be a chance to avoid spending a few bucks can end up costing you more.
Here are some classic examples of ways that trying to save can blow up in your face.
Only Considering Price
Buying the least expensive option when shopping isn’t always a good idea. Quality matters, too, and often things are cheap for a reason.
Imagine you decide to save money on sneakers by buying a pair that costs $60 rather than the $90 you normally pay. Initially, you would save money. However, it is possible that they cost less because they were made using inferior materials and craftsmanship, and therefore, will need to be replaced sooner than the $90 pair, ultimately costing you more in the long run.
Suppose your $60 kicks last just six months and must be replaced. You end up spending $120—or even $150. Some savings!
The moral of this story is that spending a bit more can pay off in the long run. If two equally good items sell for different prices, buy the one at the lower price. However, if you have to sacrifice quality, consider the long-term implications for your wallet before taking action.
Oversearching for the Best Deal
Comparing prices before making a purchase is a smart move. It could lead to finding something of comparable quality and cost or something of similar quality for less.
The problem is when to call it quits. If your hunt for the best bargain drags on too long, you might miss out on some better deals that sell out. Bargain hunting too long can drive you crazy and cost you money.
Time itself is a precious commodity. You can spend hours researching vacation rental properties, learning how to make money on the side, or searching for a pastime that you enjoy and that benefits your health.
By all means, search. Just make sure there’s a reasonable cutoff point, tied to a reasonable payoff on your investment of time.
Skipping Maintenance / Doing it Yourself
Many products we own require or benefit from regular maintenance. If you take care of things like air-conditioning units, cars, residential roofs and gutters, lawn equipment, shoes, and furnaces, they’ll last longer. If you don’t, the money you saved by dodging maintenance could be lost when you shell out even more money to replace the asset prematurely.
The same is true of not fixing products when they first show signs of malfunction. If you ignore it to save money, those minor fixes could turn into big, expensive problems.
Another common money-saving strategy is trying to do everything yourself, using, for instance, YouTube videos as a guide. Sometimes, this can be a great way to avoid service-call bills. On other occasions, it might just lead to hours of wasted time and make eventual upkeep bills even more expensive.
Buying Things Because They’re on Sale
Just because an item is on sale doesn’t mean you should purchase it.
Some retailers—and some con artists posing as legit retailers—sometimes use sales deceptively. All too often, a discount doesn’t really exist, or it is exaggerated. And even if it’s true that you could save, let’s say, 20% buying now, ask yourself whether you really need it, or are you just tempted by the hype?
Saving money is about spending less, but you aren’t really doing that if you’re buying stuff you don’t need just because it appears to be a bargain.
Wasting Money Trying to Save Money
Are you one of those people who drives miles out of your way to get cheaper gas or groceries?
If you are, ask yourself if the price difference is significant enough to offset the costs of the longer trip. Those extra miles add mileage to your car, increase fuel costs, and strip you of valuable time. After factoring this in, is it still worth it?
Making Things Instead of Buying Them
One of the first things people think when trying to budget and save money is, “How about if I do it myself?” In theory, growing your own food or building your own furniture might seem like a great idea. However, in reality, it can end up costing much more, not just in time but also money.
Mass production enables companies to sell goods cheaper than it costs us to make them and still make a profit. By the time you’ve purchased the necessary tools and materials to do it yourself, you’ll likely end up spending way more than you’d have spent buying it pre-made.