Are You Saving Pennies And Losing Dollars? – Save Money By Being Smart12 Comments March 23, 2010 / Posted in Personal Development
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Are you really saving money when you are pinching pennies? I certainly do not think so. Many people have mistaken that by pinching pennies, they are being frugal and saving money. However, I think that is certainly not the case and by pinching pennies, you may be wasting more money instead.
There are people who can scout the mall for the best deal by visiting every store available before making their decision. It is smart to find out various deals before making your decision, as it can let you have a feel of the market and available offers. However, you may not be saving money when you took into account of the time and effort you spent searching for the best deal.
Saving A Few Dollars On A Movie Ticket
There was once when I saw one of my friends trying to save a few bucks for a movie ticket. To save a few bucks, he decided to commute for an hour and a half to an old cinema for a movie. Back and forth, it would have taken him 2 to 3 hours of commuting time. On top of that, the cinema is in a rundown condition and it certainly cannot provide him with a very pleasant movie experience.
He might have thought that he had saved a few bucks but in my opinion, he does not.
Spending a total of 2 hours plus to 3 hours of commuting time to a rundown cinema for a movie does not seems to be saving money to me. What about the transport fees? What about the value of your time? What about the overall movie experience?
If you take the cost of transport fees, the value of your time (how much are you earning per hour?) and the overall experience of the movie experience, the pennies you pinch is costing you more instead.
Think About Value, Not Price
Being frugal isn’t about pinching pennies, it is about being smart and getting the best value out of the price that you pay. Let us look at an example here; compare a G2000 shirt that cost $59 and a shirt that cost $29 that you get from some neighborhood store.
If the shirt is of the same quality than getting the $29 shirt is definitely the right choice. But what if the quality of the $59 G2000 shirt is way better than the $29 shirt that you got from the neighborhood store? Which means it looks better and last longer. On top of that, it looks good on you and makes you feel like a million bucks.
The value you will get out from the $59 G2000 shirt is much more than the $29 shirt and suddenly it is not wise for you save the $30 bucks anymore. Paying the additional $30 bucks for the benefits seems to be a much wiser and a more frugal decision.
Be Frugal, But Be Smart
Do not mix up being frugal with pinching pennies and losing value. Look beyond the price and see the value you are getting. It makes more sense to pay more to get more value rather than pinching pennies sometimes. Being frugal is a great habit to have and it can help you to accumulate wealth. The next time when you want to pinch pennies and be frugal, think about the value you are getting to help you make your decision.