Frugality is considered to be a virtue that everyone should subscribe to but sometimes being son or daughter of Scrooge can have the opposite effect of what you are trying to achieve. There are times we have to spend to save.
Self-medication and playing Doctor Doctor
If you don’t have medical cover that pays for doctors’ visits, you may resort to the internet and over the counter medications to deal with a medical issue. While skipping a few visits to the doctor may save a few rands, there may come a day when your frugality will cost you your health. Most illnesses, if caught and treated early, are relatively inexpensive to treat. However leave a sore tooth for long enough and a filling could turn into a root canal or extraction. Don’t skimp on your health. Consider upgrading your health cover for a plan that includes doctor and dental visits, this is especially important as you get older.
Filing your own taxes
Doing your own taxes is not only on the top ten of unpleasant activities it could cost you money. By using a tax consultant you could actually save money, not to mention a few headaches.
Buy cheap buy twice
While spending money on designer brand is not the way to go, the other end of the scale is equally wasteful. If a toaster you buy costs R29 and the middle of the range ones cost R100, then you will be throwing it away soon. Really cheap products are cheap for a reason; they are poorly made and rarely last. They are not only bad for your wallet but bad for the environment too. Rather look for a good deal on a well-made product than sacrifice quality.
 Buying in bulk
Bulk buying is definitely a good idea if you use everything you buy and have good inventory control. The flip side is the mind set you may adopt when you see large quantities in your cupboards. You may use more of an item than if you had just one or two. When it comes to perishable items you may end up throwing most of them away. It is also important to avoid the temptation of buying stuff just because it’s on sale. If you don’t really need an item don’t be sucked into the trap of buying just because it’s a cheap bundle of stuff. Think your purchasing decisions through before you make them and you will make better choices.
Guilt saving
It goes without saying, that saving money means you have a reserve of cash at your disposal. However if your budget is very tight saving can end up costing you money. This happens when you sign up for an investment or savings plan without the necessary cash flow to fund it. The result is that you start using credit to fund the shortfall and this of course will cost you interest. Even worse, you may have to cancel the policy or investment and risk losing some of the money you invested. If your budget is tight, rather get rid of some of your debt before you embark on a savings plan.
Not taking advantage of convenience food
If you are single or just two busy working people, you may feel guilty about buying pre-cut or prepared foods. This is undoubtedly more expensive than food you prepare yourself, however your efforts to be frugal may be thwarted by the fact that you really don’t have the time or energy to make a fresh vegetable medley and roast chicken. So the food sits in the fridge fermenting as you eat yet another microwave special. If you are throwing lots of food away due to good intentions but no follow through, do the maths, it may just be cheaper to succumb to convenience.
Cell Phone Contracts
Everyone loves a new phone and the convenience of a contract and they seem to make sense because you get a lower call rate. However if you take the time to work out how much you are really paying you may decide to switch to pay as you go. Firstly you are financing the phone, it does not come free with the contract. Secondly, once you use your free minutes you will be billed for usage. Suddenly your cheap R299 per month deal exceeds R500 per month. When you have a contract you yak away not really being cognizant of the time you spend on the phone. When you have pay as you go, the rates are higher but you are now of the fact that every sentence of gossip is costing you money. This awareness changes your behaviour and you spend a lot less time on the phone. In addition you don’t have to own the latest and the greatest phone every two years hold onto your oldie. Cell contracts are particularly insidious when you have them for your kids, do they really need a new phone every two years?
Cheap Insurance products
So you shop around for cheap car and home insurance and bag a deal that is 20% less than all the others-score!. You will not feel this mistake until you need to make a claim. You may find that the only way you qualify for a pay-out, is if your car was stolen from a locked garage, behind security gates, in a security estate with armed guards trained by Rambo in Vietnam, and your house got torched by an alien spaceship. This is one area where skimping is really a bad idea. The well- known brands are your best option for getting good cover at a reasonable price.
Getting the best quality for the best price is a balancing act but you can consistently achieve value for money by engaging your brain and doing a little homework.
