Attitude Adjustment
While the pump prices may have hit an all time high in this country, we all know someone (or you are that person) who drives from one side of the city to the other, covering kilometers upon kilometers in search of better or lower fuel prices, wasting time and money to save – at best – a shilling or two per litre of petrol. Our focus on saving money can be so narrow at times that it can actually end up costing us down the road.
Saving money is great, but not if it is at the expense of your long term financial future and well being. As much as possible you have to consider the long term effects of your decisions on yourself and those around you. Otherwise, you might find yourself paying a hefty price for your “savings”. But what do I mean?
Here is an incomplete list of the worst ways to save money:
1. Falling for ‘Free’
There are a lot of free promotions going on from banking, to phone companies, to supermarkets. Now get me right, it is one thing if we go for a no-strings-attached free promotion, but buy-one-get-one-free deals or advertisements are just marketing gimmicks to get us to spend money we really shouldn’t. I gather that when something is free, it suggests to the consumer (incorrectly, as it happens) that there is no downside. Unless you had already budgeted for those two hand lotions from Nivea products, that third free bottle is not really a deal.
2. Neglecting Your Health
A body that is not healthy can not only lead to high medical bills, but it can also cut careers short and leave us unable to care for our families. While there is no possible way to prevent every single illness or accident, regular checkups and a healthy lifestyle can go a long way towards improving our odds of staying fit and active for decades.
Unfortunately, here in Kenya, if you are without health and dental insurance, getting regular, high quality preventative care can be out of reach. If this is the situation for you, be proactive and look for community resources that can help you get the care you need at an affordable rate. Until recently, I didn’t know that illnesses like TB are treated for free in most public hospitals, check into any public hospital to get free assistance in finding these resources. Don’t wait for an emergency to find out about what help is available for you.
Your health is your personal responsibility, do your research and find ways to eat a healthy diet and exercise on a free or low budget. While noodle diet might get you through a financial crisis, the ultimate price is far too high if you keep it up long term.
3. Fast-Food Dining
Most of us, if not all, are guilty of this one. Fast foods may satisfy your hunger for less today, but over time this behavior can carry a much higher price tag. Early this year I did attend a health forum where one of the medical practitioners said some very phenomenal things. In a nutshell, he brought to the attention of the attendees that the top 5 killer diseases in Kenya are lifestyle based. Diseases like high blood pressure, cancer, diabetes, obesity are caused by our poor/bad eating habits.
I read another US report by the Cancer Project which found out that most items advertised on Value Menus are high in saturated fat, sodium and cholesterol, [This is equally true for our fast foods here in Kenya]. And many items were linked to an increased risk of cancer. And researchers at the Dept. of Agriculture found medical costs stemming from obesity-related problems are about $10,000 higher than they are for those with a healthy weight.
4. Buying in Bulk
The per-unit cost of an item at Nakumatt, Uchumi or Tuskys may be less than at a grocery store or a kiosk, but unless you can consume it all, it’s a waste of money. And although this might be a stretch, I stand to be guided; I have witnessed households throw away foodstuffs and other related expired products worth thousands of money every month thanks to what in my opinion is our growing culture’s obsession with excess. Ladies and gentlemen; I’ve come to learn that Less is More
Yesterday my United Kingdom twitter friend posted a tweet showing that Britons throw away foods either because its expired or gone bad worth a whooping £6.1 Billion pounds (GBP) annually [Equivalent to about Kes.800 Billion Shillings a year. Now, how is that for dumb frugality?
5. Buying “Cheap”
I think most people understand that always going with the cheapest option without considering Quality is a mistake. [Always check before paying for a brand name].Not only does it cost more in the long run, but you can wind up cheating yourself out of things that you might really enjoy.
This hit home for me a couple of years ago when I went to an Electronics shop on Luthuli Avenue to buy me a Sony music system. The sales guy was candid enough to let me know that if I bought this particular music box, I’ll get a one year warranty and pay Kes.32,000 shillings. He went on to mention that I could get the same system, same brand for 10,000 shillings LESS but without a warranty. I wasn’t told that this was a Chinese pirated version of the original music box. Did I buy it? You guess is as good as mine. Four months later, the compact disk sensor stopped functioning; I didn’t have a warranty, so I opted for a local radio repair guy who couldn’t fix the damn thing. As I type this article, that music box is probably in the landfills somewhere in the city polluting the air. Boy, didn’t I learn my lesson? Cheap Is Expensive.
Now get me right, bargain hunting is great, but remember, it’s about getting the best value, not about spending the absolute least amount you can.
6. Neglecting Maintenance
I understand the temptation to forgo or put off maintenance on homes, fridges, electrical appliances and vehicles, especially when there doesn’t seem to be a problem. I don’t know about you, but do you ever get to a place when you plan and save, then the maintenance issue seems to pop up just when you’ve got more fun ideas for what to do with your money?
Still, you suck it up and get that transmission fluid changed when your manufacturer recommends it be done and spring for the annual cleaning and check-up. You can look for ways to do it yourself and save money, but don’t ignore it all together and hope for the best. In some cases, neglecting maintenance can put your safety at risk, not just your bank balance.
7. Making Repairs Yourself
Sometimes it’s just cheaper to pay a professional; especially for services that take up a lot of your quality time or that requires some serious expertise. Some big examples: repainting, reflooring or recarpeting your house, changing your car’s oil e.t.c
8. Dishonesty
We’ve all got our own lines when it comes to taking advantage of deals and driving a hard bargain. I can see how certain terms and restrictions can be open to interpretation and how one person idea of a smart business decision can be another person’s idea of taking total advantage.
However deliberately circumventing the rules and lying are never okay and doing it is just as bad as shoplifting. My rule of thumb: If I wouldn’t happily admit to my mother what I did to save money; I shouldn’t be doing it at all.
9. Stinginess
‘There is that scatters, yet increases; and there is that withholds more than is right but it leads to poverty. The generous soul shall be made rich; he that waters shall be watered himself.’ ~Ref, Bible Proverbs11:24, 25
Back in the day, my Sunday school teacher taught me the above bible scripture, it has become embedded in the fabric of my being. I am a generous guy, at least those close to me think so. My experience has been, the more I give, the more abundant I get. We all have times in our lives where we can’t afford to give and might even have to receive. The problem comes when you never, ever feel like you have enough to share and be generous. Holding on too tightly to what you have doesn’t make you feel more secure, it makes you feel more anxious and miserable.
When you can, allow yourself the joy of giving with an open heart to somebody who could use it. Be smart about how, what and when you give but do look for ways to incorporate generosity in your life. Be Generous. And if you’re in a position where you need help, know that there is no shame in needing a hand and to make the most of the generosity that is available to you.
Do you agree that these are bad ways to save money? What’s the most penny smart, dumb thing you’ve ever observed in the good name of frugality?
I’d love to hear from you. Feel free to leave a comment here; speak your mind.