Some people have developed the habit of pinching pennies when they should be investing them. Investing in this context doesn’t exactly mean putting your money in stocks and bonds. It is referring to long-term and short-term goals that you may have and ways that spending money on things could actually leave you better off in the short-run and long-run.
When it comes to entertainment, you may think that you are saving a lot of money by buying things on an individual bases. This may be true if you don’t do much outside of watching TV or playing video games but if you do there might be some better options. Many cities offer passes to several centers or you can sometimes get movie tickets in advance for cheap. It becomes a hard choice because you may have to put down a certain amount up front. You really don’t know if you will go and do as many movies or go out to the museums enough to make it worth it since it is the future. The fact is that if you plan things out and do the math, you will find that it can be well worth your up front investment.
When you have a hobby like rock climbing, skiing, or camping, you may be renting the gear to find out if you like it initially. As time goes on though, you should really consider buying your own gear because the expenses will eventually start adding up. Give yourself a break by getting yourself out there with the right gear that you bought. There are always places to get things at a discount especially when they are used. When you think about it, all of the stuff that you will be renting will be used anyway and you won’t be able to claim it as yours at the end of the day.
Food in Bulk
Many people decide to go to Costco or other stores that sell things in bulk because they end up being much cheaper per individual unit. For instance, you may be getting burritos at the local gas station when you go for your lunch break. If you do a little planning in advance and get your food in bulk you may have to drop an extra $20 or so dollars, but in the end you will be saving a lot more at the end of the month.
Quality of Quantity
Another thing to look at investing in is quality. While getting brand name products on everything may not be necessary, you could easily get stuff that you need and invest a percentage more just to get better quality. This ensures that the product lasts longer and is more convenient, comfortable, and better all around. Quality is not one of those things that you should forego just because you want to pinch a few more pennies.
Make sure that you aren’t saving when you should be spending. It is all about understanding the long-term and short-term benefits of your decisions.