When penny-pinching doesn’t pay
Only buy bulk products that you use on a regular basis and check the expiry date.
Sometimes buying the cheapest services and items can actually cost you more in the long-term.
There is a big difference between being financially prudent and trying to save money by taking short-cuts and picking the cheapest product or service. So here’s a list of when to avoid penny-pinching, that will save you in the long term:
Buying in bulk
Buying in bulk may seem like a great idea, goods are usually cheaper in bulk, but it doesn’t mean that it will necessarily save you money in the long term. It’s easy to get swept away when you see the lower prices of bulk products, but go through a few things in your head first, such as, do you have storage space for it, what is the expiry date and will you end up consuming more just because you now have a product that is easy to access?.
Don’t be tempted to buy luxury consumables such as chocolates, biscuits or soft drinks in bulk. You’ll most likely end up consuming more of these products than you would usually do.
Only buy in bulk packs if you use the item regularly, and check the expiry date. Discounted tinned chickpeas may seem a great idea, but unless you know your family eats chickpeas on a regular basis you will soon be stuck with tins of produce that have expired, take up space and ultimately need to be thrown away.
Stick to items that you use regularly, such as household cleaning products, that you know you won’t end up using more of just because they are in easy reach.
Insurance
Cutting out vital insurance such as car, household or life policies to try to save a couple of rand is very risky. Take a hard look at your circumstances. If you are young and single without a car or home, you may be able to get away with no insurance. However, if you have responsibilities such as a family, car and home or household goods, it is never worth the risk to skip or skimp on insurance.
You are probably insuring against something that may never happen, but if it does, you could stand to lose something you have worked towards for a long time, such as your home, car or even a holiday that you have spent months saving for if you haven’t taken out travel insurance.
If you are not insured in anyway, you need to take a look at your circumstances and remedy this as soon as possible.
Using cheap services
Taking the cheapest option for any services, from redoing your bathroom to servicing you car, is not always a good idea.
Rather see the service as an investment. If you want your geyser to still be running smoothly in a few years’ time or your car to get you safely from work to home, it is better to use reputable service providers that may be a bit more pricey, but can guarantee their work, rather than fly-by-nights that won’t take responsibility for their work.
Do you perhaps have more information pertaining to this story? Email us at roodepoortrecord@caxton.co.za (remember to include your contact details) or phone us on 011 955 1130.
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