Cost-cutting is an important value ingrained in our lives. However, it can also be overdone. If all you do is meet cost of living expenses and stash the rest of your money in a savings account, not only are you missing out on fun but you’re also losing opportunities on more profitable investing.
Below are 4 examples of how cutting corners too much can lead to bigger problems than you may think:
Whenever it comes to safety, it’s better to take a serious look at products than to just try to buy the cheapest brand, especially when it comes to automotive or baby care items.
Even shoes should be considered for safety because if you only wear cheap shoes with weak soles or poor arches and heels, it’s possible to develop blisters and calluses. Besides, cheap shoes wear out quickly and you may end up paying more for them in the long run.
Almost everyone who tries to save money by choosing the lowest health insurance premium ends up paying more per year out of pocket costs. It’s better to study various insurance plans carefully than quickly choosing the lowest monthly cost.
It’s also important to visit a doctor regularly so that illness and unhealthy conditions can be detected right away. Ignoring your health can eventually catch up with you.
Sometimes the cheapest transportation can create inconveniences, such as relying on scheduled buses or trains. If you get to the stop even a few seconds too late it could mean waiting another fifteen minutes and being late for work.
Another cheap alternative that can cause problems is leasing a vehicle at the lowest rate which usually means only being allowed a limited amount of mileage.
You may view retirement as too far into the future to worry about but if you don’t put money into retirement, such as an IRA, you could miss out on tax deductions, as well as income when you eventually retire.
Contributing a few thousand dollars per year adds up, especially if your employer matches your contributions.