How being cheap will leave you broke

Given a chance, most of us would rather save all of our money than spend it. But, in reality, the best move that we can do is to maximize our savings by living as frugally as possible. There are good ones, but some saving ideas might end up costing more in the long run. Here are a few budget blunders you may want to avoid.

Neglecting Basic Maintenance

You home, for example, can be one of the biggest investments of your life. But shrugging off small house issues, such as a dirty chimney, a cluttered gutter, and even an overgrown landscaping, can lead to spending disasters.

Doing your own taxes

If you keep your own records, your tax returns are simple, you have sufficient knowledge on finance and tax laws, you know the right forms to fill out, and which documents to fix and send, then, sure, do your own tax. But if you answered no, then stay out of it and let the professionals save you from interests and penalties for doing it all wrong.

Skimping on food

Food is a big expense. But, oftentimes, choosing nasty food doesn’t help you stay healthy. If you can’t avoid eating out from time to time, prefer healthier alternatives and skip the alcoholic drinks.

Risking your health

Neglecting your health problems because you think you can’t afford them? Expensive and stupid at the same time. A health insurance may appear expensive, but it’s a cheaper alternative than paying for your own medical bills.

Maximizing your savings is all about being smart – to know when ‘cheap’ is actually good and when it can actually cost you more.

Outsave the Joneses

I don’t know if it’s just a local cultural thing but I do think that keeping-up-with-the-Joneses also happens beyond out borders. Envy might just be part of the human experience.

People often fall into the mucky pit that is neighbor envy. What good things others have, you want for your own especially those material “improvements.” That new car. That new pool.

Many financial gurus would say that there’s no point in doing this. Statistics have it that your typical neighbor is in debt and there’s no point keeping up with broke people unless you’d want to be broke as well.

If you’re the type who wants to keep up with neighbors, then why not switch games and do one better. Be richer than them. Instead of spending on material goods that aren’t exactly assets (they depreciate), opt to put your money where it can grow.

Outsave and outinvest the Joneses!

Take comfort in the fact that you have more money in the bank and more investments stashed away. They might be lounging in their new pool but at least you can have that smug look that your family’s finances are secure and you’re on the way for a more comfortable life ahead.

5 ways to save more money

Sometimes, you need not do something drastic or overwhelming for you to save money. You may start thinking about your day-to-day routine and see what things you can actually trim to save a few more dollars a month. Here are small things that could save you a bit more.

Dropping vices. You might not realize it but that pack of cigarette or two that you smoke on a daily basis actually amounts to something substantial in a month. Try to look at your other daily guilty pleasures at well. Could be that daily Chinese take out or that extra can of soda.

Buy in bulk. Buying in bulk definitely is cheaper. However, keep in mind to focus only on items that do not have a shelf life, for example, paper towels. Some items containing chemicals have active ingredients that might stale.

Unplug all unused appliances and turn off lights. Often overlooked but appliances when plugged even if not in use, still leeches off a few a bit of juice. Light, even if you’re using energy saving fluorescent ones still consume watts of electricity. Turning them off prevents waste.

Drop unnecessary subscriptions. How many of your existing subscriptions do you actually get to maximize. How about your phone? Your cable TV? Your magazines? Your newspaper? How many of them do you actually use or read half the time in a month. You might just be able to drop one or even all of them.

Avoid flooring your car’s throttle. Some driver drive as if there’s no tomorrow. Heavy right-foot driving actually just wastes gas. You don’t need to tap your car’s ponies when driving. Besides, even if you build up speed and only brake shortly afterwards, you’re just converting all the force into heat. Get more mileage by tempering how you speed up.

Four more money saving mistakes

For the sake of being frugal, oftentimes, we end up spending more. There are those who drive around town just to search for the cheapest gas. We know that’s not practical, especially if you’re saving a nickel at most. Below are some of the common financial wrong moves people tend to commit.

Falling for ‘free’

Consumers always think that since something is ‘free,’ then there is no downside to it. A ‘free shipping with a $150 purchase’ promo, for example, would make you spend more than what you intend just to avail of the free shipping.

Overdosing at the dollar store

Dollar stores are gaining popularity since people are looking for bargains. But according to Consumer Reports, some products are actually dangerous, such as lamps and extension cords with fake UL labels certifying their safety, or some over-the-counter Aspirin shelved even beyond their expiration dates.

Buying in bulk

For some, buying in bulk is a good idea, since it can really save them money. But why would you buy items in bulk if you know that you can’t consume it all? Such a waste of money.

Making repairs yourself

There are broken things best left in the hands of professionals to be fixed, especially if making your own repairs would take up precious time but would still end up being a wreak. In this case, choosing an expert to do it is a cheaper alternative.