As humans, we try to save as much money as possible whenever we can. How many times have you looked at an item and thought “I’ll wait till it’s in the sale in a couple of weeks”? We have frugality in our nature, mixed with a lot of common sense. It makes sense to shop only at home bargains for shampoo and shower gel as they literally are money getting washed down the drain.
It also makes sense to not buy your children the most expensive shoes for school, as they are only going to grow out of them in a few months when they outgrow them. But where does it make sense to spend? If you are constantly buying cheap, when does the repurchasing amount equal or exceed the more expensive version you decided against in the first place?
Unfortunately, the answer is that it doesn’t take quite a long as you might think. There are items where you can actually spend more to save in the long run. Here is a useful reference list to keep in mind when purchasing, so you are able to decipher when it makes sense to splurge rather than save.
Modes Of Transportation
Now, if you have a teenager who has just learned to drive, you are obviously not going to be splurging on a brand new car for them. However, when it comes to purchasing a new vehicle for yourself what are the costs of scrimping? Well if you are extremely lucky, you may be able to find an old car that is in extremely good condition and will not cost you a penny other than a few new spark plugs or tires.
However, this is very seldom the case, and the cost of keeping an older car alive can very commonly outweigh the monthly costs of paying for a new car on finance/ add up to the total cost of a new car. Even though a new car loses value as soon as it is driven off of the forecourt, it is still going to be more cost-effective than an older car purchase. Even just based on fuel consumption over mileage – newer cars are a lot more fuel efficient and will end up costing you less on a long journey.
You may be thinking “in this economic climate, how is anyone even able to scrimp on property prices?” It can feel like no matter what and where you decide to buy, it is going to be a splurge. However, this is in terms of cost-effectiveness over a prolonged period of time.
You may move into a flat or two-bedroom house now – but is that a sustainable option even though it is considerably cheaper at the time of purchase? Your current plans may be completely different to your future plans, and those future plans may come around a lot quicker than you may expect.
If you want to start a family, then you will potentially be moving a lot quicker than you want. If you move into a house with dated central heating and double glazing, you’ll be paying out to replace them pretty soon, and if you don’t like the kitchen or bathrooms, that is more money paid out to get the house up to scratch.
Rather than thinking of the here and now with a property, and saving a little in your present life, it is much more cost-effective to look towards the future and spend more money building a sustainable life for yourself. A roof over your head that will last you well into your retirement is going to save a lot more money than a property that will last you only a few years.
Though it may be second nature to you to always look at the cheaper option, it is important to think long-term, especially with a big purchase.