A Lesson All Cheapskates Must Learn!

There are things in life that you can’t (or better yet: shouldn’t) go cheap on!

The most obvious example that I could think of is a “fixer-upper” home that is way cheaper that the new houses right down the street. Sure, you might believe (falsely, I should add) that you’re getting a great deal because you’re saving 30 percent (or more) on the initial cost, but guess what … if you’re not qualified to fix the things that are bound to be wrong with it, then this money pit is almost guaranteed to cause the biggest migraine headache that you will ever have in your entire life (trust me … this “cheap” crap-hole will drive you insane). Older houses often fall apart, and when they do the price of repairs is usually well beyond phenomenal. This can be a real pain in the ass if you’re not careful (and very, very expensive in the long run). Do you see how this can trick most people who are just trying to save?

This same principle also applies to almost anything that you can buy. Recently, I saw this nice laptop at a yard sale and the owner of it wanted about half of what it would cost new (right around $500). I thought to myself, “Sure, it would be nice to save a little money by purchasing this used computer instead of a brand-new one. However, it looks like it’s going to need some frequent trips to the repair shop, due to how slow it’s operating and also how quickly it’s getting hot.” Now, had I bought this “deal” I would probably be regretting how much I “saved” instead of appreciating it right now. While I was there, I guesstimated how much time and money I thought this thing would cost me (with the repair costs, gas to get around, etc.) and do you know what? It didn’t look pretty, that’s what. I kindly said, “No thanks!” and got out of there!

Perhaps the best way to analyze the cheaper versus more expensive decision is to be completely honest about what you’ll do with the upfront savings if you chose the cheaper version. Are you going to quickly turn around and spend the savings on something else (that might not be valuable in itself)? Are you really going to invest these savings into something that will make you more money in the future? These kinds of decisions are far more important than they appear on the surface. Why? Well, over time you can amass a large fortune by making the best decisions at the times like this (which is true in the majority of cases)!

From time to time, every thrifty person on this planet must ask themselves this one important question: should I purchase this used (fill in the blank) even though the potential advantages don’t outweigh the additional aggravation. If the answer is “NO”, then you’ll have to agree that you’re staring at an inferior product, and you should then be wary as hell (note: everything else that one could buy is open season for us thrifty bastards)! Good luck, and I hope you learned something here today!