Back in August, I spent $160 on a hotel that was significantly cheaper than the ones surrounding it. I was hoping that I found a deal. Of course, it backfired on me.
In that post, I mentioned the reasons for why we left the hotel just minutes after we checked in (including there being blood splatters in the hotel room) yet they still would not give us a refund. We have 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 will work out in my favor in the end. Well, I have been wrong on many occasions!
Below are six ways being cheap can cost you money:
1. Buying cheap clothing.
This is a bad habit I just cannot seem to kick. I am 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 will save me money in that 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.
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 yourself (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 do not have the correct form of insurance.
3. Shopping on “deal” websites.
I used to hop on Groupon every single morning. Yep, 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 fine. 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.
There are many gas apps and websites out there right now. With how expensive gas costs, that 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 are 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 on gas, and in the end if this person would actually calculate their savings, they would probably realize that they are 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 do not realize. If you do not have the patience or skills to do a DIY project, you may find that you are wasting both time and money.
Related article: DIY Wedding Ideas – Worth It Or A Waste Of Money?
6. Neglecting routine maintenance.
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 dentist every six months.
- And much, much more.
With your maintenance, you always want to make sure you do it and that you do not do it cheaply. Yes, you can do things “frugally,” just make sure they are done high quality. You do not 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?
What was your last money mistake?
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Confession time: I have a “friend” who bought some wine at the supermarket but was too cheap to buy a strong plastic bag to put the bottles in, and opted for the cheaper, thinner bag instead: it was 5c cheaper. Needless to say, on the way to the car the bag broke and all but one of the bottles smashed. 🙁
Oh no! That really stinks 🙁
i do buy my clothes cheap, usually at thrift stores but with 3 kids, clothes tend to get ruined quickly anyway. I have been guilty of spending/wasting money on ‘deals’ that we didn’t really need.
If they are going to get ruined, then I see nothing wrong with buying cheap clothing. I’d do the same thing too.
Cheap shoes! Every single time I’ve bought cheap shoes I’ve regretted it.
They’re usually uncomfortable, tear my feet to shreds and ultimately become clutter at the bottom of my wardrobe.
Now, I spend a *lot* more for a pair of shoes and I wear them all day, every day. My feet are happier and I actually spend less overall.
Buying cheap is usually a false economy.
Good job on learning from your mistake 🙂
This post is so accurate! I am guilty of buying cheap clothes for sure! What a waste.
I’m also amazed at people who will drive miles to save, probably, about $2 – which they waste by driving so far. This bothers me more than I usually care to admit!
Haha yes it bothers me too!
I’m an SLP in a school and I like to buy cheap but professional-looking clothes for days I work with preschoolers. Other than that I’m with you on quality over cheapness 😉
I definitely think that makes sense!
Agree with your post. Groupon makes me want a massage everytime I’m on it and I spend way more money than I should
Thanks Dana!
When I turned 26 I lost my insurance through my father. At the time I was working parttime and would have paid an arm and a leg for dental insurance (I purchased my own health insurance). I started my current job last fall and once again had dental insurance. However, I kept putting off going to the dentist. Big mistake. I ended up with 5 cavities and having to pay over $500 out-of-pocket even though I had dental insurance. I brush and floss everyday, but sometimes even that isn’t good enough. Never again!
Ugh that stinks Katelyn!
Another huge problem with Groupon is that businesses that offer Groupon deals very often desperately need the business — meaning there are reasons the business isn’t doing well on its own. I have often gotten Groupons and then gotten very poor service and it ended up being a waste of my money. I have heard of commercial real estate agents keeping an eye on the local Groupon/LivingSocial market to see what businesses might be in danger of going under!
Wow that’s crazy! I never really thought about that.
These are all such great tips for helping a family save money in important ways (rather than ways that can end up hurting your budget instead.) Thanks for sharing!
Thanks Junietta!
Michelle,
I agree with the clothes buying.
As an entrepreneur myself, I rather buy less but with good quality.
This way things last longer and shopping just takes too much time out of the business.
My answer is just good outlet shopping adventures.
cheers
Michelle,
I agree with the clothes buying.
As an entrepreneur myself, I rather buy less but with good quality.
This way things last longer and shopping just takes too much time out of the business.
My answer is just good outlet shopping adventures.
cheers
Thanks Rayfil!
I am guilty of thinking DIY-ing will save me money. I tried to fix my car years ago as a broke student before Youtube was a thing. Ended up breaking something that made the car a giant paperweight. Had to get a mechanic to come out and fix the thing. The thing I broke (whatever it was) ended up costing more than the $80 I could have paid someone to fix my original problem.
That said, I do a lot of things myself, but only things I understand, have knowledge in and/or there are enough clear instructional videos and information online.
Oh no! That really stinks.
Spot-on points especially groupons. I was tempted to dine out even more and it blew my budget.
Same here!
I can relate to most of these! My biggest issue is cheap clothes, too. I’ve made strides recently, but I still have the internal debate about buying one classic item for $60 verses four or five pieces for a little more. Maintenance is one I actually keep up with — my car and my teeth are in great condition because of it! Awesome post, Michelle.
Thanks Kendal!
This was a very informative read. I’m also guilty of renting cheap rooms and on some occasions it has backfired on me and my family. Thanks for sharing.
Thank you Jaafar! 🙂