Penny Wise, Pound Foolish? 5 Expenses NOT To Cut

It seems these days there are only two types of people: those out of work and those who are afraid they might be. And that leads to people putting off purchases and searching for more ways to spend less. A penny saved, is, after all, a penny earned.

But there’s another expression that also applies: “Penny wise and pound foolish.” Cutting some things may save you now but cost you later.

Example? Your car. Skipping oil changes might save you 30 bucks today, but a seized engine could cost you $5,000 down the road. Something you might cut back on? Tune-ups. If your car is running well, it’s probably ok.

When it comes to car insurance, don’t cut your liability. But if your car is only worth a few hundred dollars, you might consider dropping collision. Weigh the cost/benefit.

And your health: many people are tempted to skip or cut doses in half to prolong prescriptions. Bad idea… even if you’re feeling fine. Good idea? Ask your doctor about generic substitutes or free samples.

And finally your home. Even if the value of your home is falling, the cost to rebuild it isn’t: don’t lower your coverage. Do however, look into raising your deductible. Going from $250 to $1,000 can save 15% or more.

Bottom line? Once you get started cutting expenses, sometimes it’s hard to stop. And there are plenty of ways to save on your car, your health and home. Just don’t be penny-wise and pound foolish.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Check out our hottest deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,009 more deals!

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.