Oftentimes, we try to better our financial budgets by cutting things or cutting back on how much we spend to make healthier financial decisions. If you are in a situation where the money is tight, is common to cut back on things you do not need. Being honest with yourself if you are spending way too much on items is a great step to be stepping towards improving yourself. But not all budget cuts are created equally, some of these budget cuts will be costing you more in the long run. It could be not looking into the cost peruse or not paying something in the short term which could accumulate to a large expense in the long term. These are some examples of things that are likely to cost you more than saving money. Here are some examples that can hurt you more than save you.
Regular Car Maintenance
Lots of the population avoid paying a little bit each month for car maintenance like it is the plague, many of them always end up with disastrous car problems which could cost us thousands, way more than we would have ever expected. You may not be very knowledgeable about cars but doing the recommended monthly checkups is better than finding out you need a new car because the damage is so bad it cannot be reversed. Choosing not to pay for the regular things is almost always a bad idea to fall into. Like the basic oil changes, tire rotations, and so much more, it could lead to your car needing a new engine which can be about 3,000 euros or it could become much worse. Whereas paying about 30 euros each month is no doubt a better route.
Many of us purchase a gym membership early in the year and leave them in a draw and forget they even own one. We tend to forget taking our own body can be one of the more costly things in life. Yes, eating the third cheeseburger might taste great, but how is that hurting us? Regularly exercising and eating relatively healthy can only help us in the long run. No, that does not mean any more snacks or becoming a gym geek, but it means doing just 30 minutes of exercise each day or eating 1 less pizza slice. The medical bill as we age tends to grow larger and larger, needing more pills or more surgeries can be easily avoided by 20 minutes walks each day after work. It keeps your brain sharper as well helping you make better choices in life but also financially.
There are many more ways cutting from your budget might seem to be a good choice but take the time to map it out in the long run. Will it whacks you in the gut in the long run or will it have you better prepared financially to take the hits and tackle them smoothly.
Lucas Zhang was a Finance major at Ohio State University. He writes about finance, mortgages, and technology for Irish Mortgage Brokers.