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5 Times Frugality Doesn’t Work

5 Times Frugality Doesn’t WorkWe are all about being frugal. It is our belief that consistent frugality can lead to a better life for you and your family.

Countless people spend more than they need to spend in their day to day lives, and they pay for it in the long run. Learn how to save money, and your financial future will suddenly look a lot better.

With that said, even we have to admit that taking the ‘cheap’ route is not always the best way to go. Following is a list of five times when frugality really doesn’t work.

Purchasing Insurance

Of course you want to get a good deal when buying insurance. However, there is a difference between getting a good deal and picking the wrong plan.

If you buy insurance which really isn’t sufficient to cover your needs, you will be exposing yourself to unnecessary financial risk. Look for insurance plans which are going to balance monthly savings with enough coverage to keep you protected. This basic advice applies no matter what kind of insurance you happen to be purchasing.

Hiring a Contractor

If something goes wrong with your house – for example, if you roof springs a leak – you are probably going to need to call in a contractor to take care of the repair.

This is not a good time to be cheap. There are probably plenty of ‘contractors’ in your area who will do the job for very little money, but those people are likely not qualified (or insured). Stick with reputable contractors and accept the fact that they will come with a higher price tag.

Purchasing a Mattress

You spend a lot of time in bed. Most people sleep at least six hours a day, with many people sleeping eight hours or more. Considering how much time you spend laying in your bed each day, it only makes sense to invest in your sleep by purchasing a quality mattress. You don’t necessarily have to buy the most expensive mattress on the market, but you shouldn’t buy the cheapest, either.

Buying Groceries

This one is not an all-or-nothing proposition, because it can be better in some situations to find a great deal on your food. However, if you only are interested in cheap food options, you will wind up feeding yourself a particularly unhealthy diet.

It tends to be inexpensive to eat poorly, while buying good foods like fruits and vegetables can be a bit costlier. The cost will be worth it in the end, however, as you will be doing your health a favor.

Investing in Technology

Need to buy a new computer? Maybe you are in the market for a new TV? Whatever the case, you will typically be rewarded for spending a bit more money on these items. There are plenty of cheap electronics on the market today, and those might seem like a good deal at first.

Unfortunately, cheap electronics usually break down quickly, requiring you to buy another unit in short order. Invest in quality products and take good care of them for years to come.

 

Have you ever hurt yourself in the long-run by being too frugal? When else is frugality a bad idea?

 

Photo courtesy of: TheDigitalWay

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John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

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