Frugality Can Be Costly

Watching how you spend your money, budgeting, waiting for sales are all good things, but going cheap on everything is not a such a good idea.  Always being frugal can be costly. And here's how.

Let's start with cheap shoes. They don't often last past one season where a good pair of classic shoes will take you through a few years and stay current looking. Not to mention bad shoes can contribute to foot problems. You don't have to break the bank but super cheap here is when frugality costs you money.

Switching to cars.  Leasing will get you lower payments up front. That's appealing, but in the long run it's probably a bad deal. When the lease is up you turn it over and get nothing. Now let's say you get a new car every two or three years, or you're in sales and like a new car, then leasing might be an option.

Lower health premium insurance seems more affordable. But think on it.  How much will you pay out of pocket before you meet your deductible? Add it up.  And if you're skipping going to the doctor because you can't meet the deduction, it might not be worth it.

Skipping retirement savings is a big no no. Being too cheap to save, say, $50 a paycheck in your early years will without a doubt cost you thousands of dollars in retirement. Don't be frugal here.

OK, I saved this one for last because there's a caveat. Baby products. You take a risk when buying a used carseat or crib that there's been a recall. If you still decide to go this route, ask the seller about the model number and check to see if there's been a problem with it.

Not every situation here is iron clad, so pause; do the math. Determine if you really are saving money in the end.