Being too frugal can be more costly
Hey there, this is the 3rd blog in this series of frugality that I wanted to share from my experience. There are times when being too frugal is more costly. Here are some common issues I experience too after reading the article I attached below.
Skimming on Babies Expenses
Being a first time father, I tend to save in every possible area, if you know what I mean. When we talk about having a baby, you know your expenses skyrockets the first few months & the recurring expenses will balloon subsequently. Of course there are other expenses that you didn’t factor in like the stroller, high chair, the ‘portable baby chair’ at the nanny’s place & etc. So when choosing our first stroller, I went for the cheapest one because we wanted to save $$$ (‘Proton Stroller’), rather than buying a good, reliable 1 & what we call the ‘Mercedes Stroller’. But looking back after having 3 kids, it would have saved us more money if we have ‘invested’ in the mid range ‘Vios stroller’ because after the 2nd child, our 1st ‘Proton Stroller’ broke down & we had to get a 2nd ‘Proton Stroller’.
Having no Will
Having gone through the stress after my dad pass away, I knew that I can’t save money on not writing a Will. As a result, even my dad who had a Will written, still had many other cost incurred mainly because he did not seek the ‘right’ person to advise him. Once I settle his estate, I pulled my wife aside & sat down with a Will writer to plan out the eventuality so that my kids will not have to go through the hardship of not having emergency funds because of no Will.
Buying the Cheapest Insurance
Before my career as an Insurance Agent & subsequently now as a Financial Advisor, it would be natural to get the cheapest form of insurance. But cheap insurance does not necessarily save money. This is because there are a lot of fine prints that may result in having to pay out of pocket expenses (not claimable thru the Insurance plans). I realize that we should find the most competitive insurance best suited to us, rather than finding the cheapest form of insurance. In order to know which plan is the most competitive, you need to be able to have an understanding & be able to compare ‘apple to apple’
Here is the original article for your reading pleasure & do comment below your similar experience of being too frugal.
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