Are You Penny Wise and Pound Foolish?
Are you cautious with your pocket change but careless when it comes to spending money on big ticket items?
Some of us are great with money when it comes to cutting back our daily budget — buying cheaper products at the supermarket and opting for weekend activities that cost less money.
Yet in the face of a totally indulgent and ridiculously priced luxury item, cash is whipped out of the pocket before the salesperson can ask “Will that be cash or credit?”
Do you neglect how much you’re really spending on larger purchases?
Being penny wise and pound foolish is a subtle syndrome that’s not easy self-diagnose. But if you spend your time coupon clipping to save $1 at the video rental store instead of spending your time to improve your skills and get a better job that pays more, that could be the first sign.
Here are some more of those things we do to save a few pennies but end up completely losing sight of the bigger picture:
Driving 20 minutes to fill up at a cheaper petrol pump
Especially if you own a four wheel drive. Work out how much you’re saving versus how much it costs you to get there and back before putting the pedal to the metal. Why not read saving money on petrol techniques while you are at it?
Going to the pub for $3.50 scooners
With your mates, but spending $65 to get home in a taxi (not including the $12 kebab before getting in the taxi).
Spending an average of $1 a day on LOTTO
Hoping for that big win and blissful retirement all cashed up, because you’ve got to be in it to win it right? That same dollar stowed away in a savings account has a guaranteed return. The amount might pale in comparison to the 15 million dollar jackpot, but seriously, what are the chances?
Buying cheap and low quality clothing and replacing it often.
When it comes to children’s clothing, definitely go for cheap — they will destroy their clothes no matter what and are constantly growing out of them. As for yourself, absolutely spend the money on a few well cut and quality pieces you are comfortable and confident in and will wear for many years to come. Many women have 10 pairs of $50 jeans that look terrible, feel terrible, don’t do anything for a woman’s figure and are embarrassing to wear out — so they buy another $50 pair thinking “This pair will be different.” The last 10 pairs weren’t and this one won’t be any different.
Not buying fruits, vegetables and quality produce because its expensive
Then paying a king’s ransom in medical bills because of poor health.
Never taking your wife or husband out on a date
to keep the romance alive, only to foot a big bill for a divorce lawyer later.
Saving money on car maintenance
only to get into an accident and wrecking someone else’s car.
Withdrawing small amounts of cash from the ATM
but paying $2 for each transaction.
Can you think of any more?
If you have any common misconceptions that people fail to realise when trying to save money, feel free to drop a comment below!
Related Posts
2 Responses for Are You Penny Wise and Pound Foolish?
Don’t scrimp and save too much when it comes to your everyday (or weekly) grocery shopping. Allow yourself a few good quality items that you can enjoy over several days, such as ice cream, your favourite yoghurt to have on breakfast, or a beautiful loaf of bread for lunch box sandwiches.
Spending this on yourself works out cheaper in the long run than feeling deprived by your budget-conscious rations and splurging out on individual snacks, ‘extra’ food court lunches or late night convenience store Magnums.
Claire,
Fantastic points. You really do need to treat yourself to some of the luxuries you deserve. No one wants to be eating baked beans all month in the hope of saving a few extra dollars.
And as you said, if you save to much money – you can find yourself lashing out with your spending to make up for those feelings of being deprived.
Great budgeting tips!
