Being Cheap Can Be Expensive

Yes, it’s very important to save money where you can, but you must understand the value of what you’re saving on. Here are some examples of personal finance areas to think about as you focus on savings and investments, so you can build your wealth.

1) Health & Auto Insurance - lacking a good health insurance plan and/or a good auto policy can cost you greatly. It's very important to understand your risk exposures and what you are getting covered for what you're paying for. If you become ill or get into an accident, you want the best coverage you were able to afford.

2) Car Maintenance - make sure your car is properly maintained and working well is super important. Besides potentially compromising your safety, and others, including those who you may share your car with, the cost of car repairs due to the lack of proper maintenance can be very expensive and time consuming.

3) Your Education and Personal Development - don't go cheap on your education, it is so essential to your personal development. Be smart and wise about the time and money you would want to spend on your education and personal development. Invest as much as you can to acquire competitive knowledge, gain as much experience as possible, learn new skills and seek opportunities to apply yourself where possible. You should want to maximize your tuition benefits as much as possible!

5) Buying bulk, sales items (buy one get one free) and coupon items - be mindful of your spending because buying more than what you may need is just as bad as overspending. Don't think that you are saving by buying more for a slightly discounted price, as you may be better off simply buying what you need and keeping to your spending discipline. Remember, you are the driver of your finances, so stay on top of it.

6) Professional services - as the common saying goes, you get what you pay for. When it comes to areas of large purchases, understanding contracts, financing, legal matters, etc., you may want to seek professional experience rather than get advice from your friends or just rely on the internet.

7) The price of free, as most free things are not really free. I also wrote an article about this topic, so you can read it here.

Remember, the good intentions of being cheap don’t always pay out well in the long run.