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?
Join the free Master Your Money course!
Join the free email course and finally learn how to manage your money better, pay off debt, save more money, and reach financial freedom.