If you’re trying to be frugal so you can keep more money in your checking account, your goal may seem to be to spend the least amount possible on your purchases.
However, in reality this is not always the case. In fact, there are three situations where it might make sense to pay a slightly higher credit card bill or take a little more money out of savings to pay a higher price. From where? Because doing so can ultimately save you money.
1. When you pay for high quality professional help
If you need the services of a professional, most of the time finding the cheapest professional won’t do much good. Quality service providers often charge a high price, but the cost may be worth it.
Think about it: If you pay a cheap mechanic to fix your car’s brakes and they scam you by installing used parts or even the wrong parts, or if you pay a substandard lawyer and lose your case, you may have saved money up front. service fees, but you’ll end up missing out on a lot more in the end.
Ask friends and loved ones for recommendations and read online reviews carefully to make sure you find the best quality help. Choose your service provider based on who is the most competent, reliable person whose expertise you can afford, not on who offers the absolute lowest price.
2. When you purchase quality products for items you need to interact with regularly
There are some items you should use every day that can make a big impact on your quality of life. You can pay to spend more on these and not buy the cheapest version. There are several reasons for this.
First, items are less likely to wear out or need expensive repairs if you buy quality versions that are more expensive than cheap ones. If you can buy a $50 pair of shoes and they last five years, or a $10 pair of shoes last six months, you’re better off buying the more expensive one.
Second, purchasing a higher quality product can help you avoid many aggravations. If you’re disappointed every time you use a product because it doesn’t work as you expected, you’ll probably replace it sooner than if you had purchased a better product.
3. When you purchase comprehensive insurance
Finally, purchasing more than the minimum required coverage can save you a lot of money. Look, most states only require liability auto insurance. This pays for the harm you cause to others, but not for your own harm. And if you’re buying a home, mortgage lenders generally only require insurance coverage for homeowners, but not personal belongings.
But having too little insurance coverage can leave a person facing huge bills when a disaster strikes. A driver who does not have collision insurance, hits a deer, or gets into a single car accident may have to pay out-of-pocket for any costs associated with repairing or replacing his car; A person who only has home insurance may have to pay to replace all their personal vehicles. items after the fire. It is better to cover all these expenses in case something goes wrong.
In conclusion, Cheaper is not always better. Consider the circumstances carefully to decide whether spending more upfront will save your personal finances from potentially much larger costs in the long run.
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