In August, I booked a hotel for $160 because it was significantly cheaper than other nearby options. I thought I had found a good deal, but it quickly backfired.
Within minutes of checking in we left the hotel — there were many issues, including blood splatters in the room — yet the hotel refused to issue a refund. We have since disputed the charge with our credit card company, and the outcome is still uncertain.
Every day, many people try to save money but unintentionally end up wasting it. I’m certainly guilty of this. I often choose the cheapest option hoping it will work out, and several times it hasn’t. Here are six common ways being overly cheap can cost you more in the long run.
1. Buying cheap clothing
I struggle to break this habit. I frequently shop at fast-fashion stores that sell very inexpensive clothes that rarely last a year. In the short term the savings feel good, but replacing worn-out garments repeatedly adds up.
Investing in slightly higher-quality pieces that last longer will save money over time and reduce how often you need to shop. Better-made clothing also tends to look and feel better, so you get more value from each purchase.
2. Skipping insurance
Trying to save by avoiding insurance — whether health, life, auto, home, or other types — can be a risky choice. Most people cannot self-insure for large, unexpected events. If a major incident occurs without the right coverage, it can devastate your finances and push you into debt.
Paying for appropriate insurance protects you from large, unpredictable expenses and provides peace of mind that an isolated event won’t derail your financial stability.
3. Chasing every deal on “deal” websites
I used to check Groupon every single morning. I thought I was finding bargains, but I ended up buying deals I didn’t need simply because they seemed like a bargain. That habit wasted money rather than saved it.
Before buying a “deal,” ask whether you actually need the item or experience and whether it will add value to your life. A good-looking discount doesn’t make a purchase worthwhile if you wouldn’t have bought it at full price.
4. Driving long distances to save a few cents on gas
Gas price comparison apps are useful, but gas prices usually don’t vary hugely between nearby stations. Some people drive miles out of their way to save a few cents per gallon, not realizing the extra driving often cancels out the savings when you account for time, fuel consumed, and wear on the car.
If you’re already passing a cheaper station, it makes sense to stop, but deliberately driving long distances for marginal savings is rarely worth it.
5. Assuming DIY always saves money
Do-it-yourself projects can be cost-effective, but not always. If you lack the necessary skills, tools, or patience, DIY attempts can waste time and money or create problems that require professional repair. Be honest about your abilities and the complexity of the task before deciding to DIY.
For some projects, hiring an experienced professional will cost more upfront but save money and stress in the long run by ensuring the work is done correctly the first time.
6. Neglecting routine maintenance
Skipping regular maintenance on your home, car, or health to save money today often leads to larger expenses later. Small issues quickly grow into big, expensive problems when left unattended. Examples include:
- Fixing a clogged drain before it worsens
- Repairing a leaky pipe promptly
- Replacing car tires when they’re worn
- Getting regular oil changes
- Visiting the dentist every six months
Perform maintenance carefully and at a reasonable standard—being frugal doesn’t mean cutting corners on important upkeep. Neglecting maintenance or doing shoddy repairs can force you to pay much more later or start over entirely.
For instance, skipping routine dental visits to save money can lead to serious dental problems that are costlier and more painful to treat down the road. Regular preventive care often prevents larger expenses.
How has being cheap cost you money?
What was your last money mistake?