Prioritize long-term well-being over short-term savings: Why considering your time, health, and safety is crucial in financial decisions.

A user took to the forum and asked what are some penny smart, dollar dumb things you wish more people knew? and here are the top picks:

1. The Cost Of Time

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It’s essential to consider the value of our time when making financial decisions. Saving a few dollars is only sometimes worth spending hours on.

“My time, to me, is worth at least double my hourly rate at work. I’m salaried, but I can roughly estimate my hourly rate. I would rather pay someone to change my brakes than spends 4 hours inching my way through it myself. Those 4 hours could be better spent spending time with my kids and strengthening that relationship.” said one.

“Spending hours to save a few dollars. While if this is done because you have the time or as a hobby and for fun, it’s awesome. However, I’m not going to sit in an airport for 7 hours to save 19 dollars for a cheaper flight while on vacation.” another added.

2. The Coupon Craze

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Clipping coupons can be tempting, but buying items you don’t need to save money can cost more in the long run. Beware of false savings and hidden costs.

“Cut coupons for items you wouldn’t normally buy, like frozen pretzels. I’m guilty of that one.” a user said.

“Sometimes, this does make sense. Would I normally eat organic frozen burritos? No, but when I get them for 25 cents, I sure will.” another added.

Read: Kill It Now: 10 Frugal Things That You’re Doing, But Aren’t Worth It Anymore

3. The Quality-Price Tradeoff

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Investing in quality items can save you money in the long run. Don’t be cheap on life experiences either, as they are often what we cherish most.

“Not buying quality replacement items. You use it a lot; you just replaced it….why not spend the extra $100 on the thing you just returned, so you don’t need to do it again. You usually get what you pay for.

Also, don’t be cheap on life experiences. The entire point of being frugal is so that when you spend money, you can enjoy yourself or the thing you bought.” said one.

“That’s exactly what I did when my stand mixer broke. I use my mixer at least thrice weekly to bake bread and cakes. It’s a bit cheaper than store-bought, but mostly I do it as a hobby and because my homemade tastes better. So I caved in, bought the Kitchen-Aid mixer, and sprung for the scraper-beater attachment and pour shield. Best $300 I’ve ever spent.” another shared.

4. The True Cost Of Cheap Rent

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Living far from work to save on rent can be a false economy. Long commutes can drain your time, energy, and finances, impacting your well-being and quality of life.

“Living super far from your job because the rent is cheaper. I know many people who drive 1-2 hours each way to and from work. When I ask why the response is almost always, “it’s cheaper to live farther away.”

I don’t know how much money my friends make, but 40-80 hours per month of someone’s time is worth the difference in rent. Not to mention that you’re throwing away that time- you need to produce more work or spend quality time with family or friends. You’re just commuting. Add to that the added cost of gas at $4/gallon, and I wonder if you’re coming out ahead of the game.

You’re just throwing valuable hours of your life away that you’ll never get back.” a user explained.

Read: Don’t Get Duped: 10 Biggest Rip-offs That You Are Continuously Buying

5. The Price Of Health And Safety

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“Don’t compromise on your health or safety. Ever. Saving a few bucks isn’t worth it when you’re sick or dead.

I can live without many things, but there are some things that without I cannot live. Don’t make the mistake of putting things in the wrong category.” a user said.

6. The Downsides Of Buying A Cheap Used Car

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Buying a cheap used car can cost more in repairs. Investing in a decent used car upfront is better to avoid additional expenses later.

“Don’t buy a piece of crap used car for $2,000 that requires $3,000 in mechanic’s bills to run decently. Better to spend $5,000 on a halfway-decent used car. “Someone I know” doesn’t understand this concept, and it drives me nuts.” a user suggested.

“Someone I know is trying to save money by putting off buying a new car and spending dollars every month at the mechanic’s fixing the problem of the week. Car is going to die any minute now. Ugh, so frustrating.” said another.

Read: Stay Alert: 10 Sneaky Scams You Didn’t Realize Were Happening

7. Cutting Costs That Bring No Pleasure

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“People start cutting on entertainment and stuff like that as the first step, as it is a “luxury,” but actually, it plays essential roles in bonding and regenerating ourselves.

If our rent is €600 and our car insurance is €80, then denying ourselves dinner in town for €60 once or twice a month would be stupid. We had to pay €1100 for literally nothing – rent for our last apartment, which had three months notice period even though we moved in the first one. That is like 18 dinners out on the town. So why deny yourself these pleasures? It is essential to organize life so you don’t have these extra costs that buy nothing.

An Xbox is €180. Fixing our car after the last accident was like 5 Xboxes. So get that Xbox if you want to. You have one life to live. Ultimately, we need to cut costs that bring no pleasure.” a user suggested.

8. Buying A 5-Star Rated Car Is Worth The Investment

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Prioritize safety over cost when buying a car. Your brain is a valuable organ, and it’s not worth risking it to save a few thousand dollars.

“Buying a car that isn’t 5-star safety rated. Think about how much you’ve invested in your education- the time, money, etc. – your brain is a precious organ. Why would you risk damaging it (more than necessary in the event of a car accident) for the sake of a few thousand dollars?

I speak from personal experience – I was in a car accident two months ago that would have killed me if not for perfect front and curtain airbags, clever crumple zones, and ESC brakes. Remember, you may be a safe driver – but the guy who drives on the wrong side of the road in a 4wd and hits you isn’t.” a user shared.

Read: From Frugal To Cheapskate: 10 Things People Do That Are Borderline Disgusting!

9. The Hidden Costs Of Credit Cards

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Understanding the actual cost of credit cards is crucial in avoiding financial pitfalls. Learn from the mistakes of others who have learned this lesson hard.

“I wish more people knew how much their credit cards can cost them. I know it was a lesson I had to learn the hard way!” said one.

“It’s important to understand the cost of using credit cards and to use them responsibly to avoid accumulating debt and high-interest rates.” another said.

10. Arguing Over Small-Cost Things Is Not Worth It

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“Arguing with your significant other/spouse over small-cost things. If your husband/wife likes the $4 brand of milk while you want the $2.25 brand, stop yourself and think, “Am I REALLY about to fight this battle?”

This is just penny-smart reasoning here. Even if arguing isn’t very time-intensive, it can be emotionally exhausting, and your psychological state shouldn’t be considered cost-free.” one suggested.

Read: OMG! 10 Tales of Cheapskate Parents and Their Hilariously Absurd Money-Saving Tactics

In conclusion, being frugal is a good financial habit, but it should not be taken to the extreme. Finding a balance between saving money and living a happy and fulfilling life is essential.

What are your thoughts? Do you have any tips for finding the right balance? Let us know in the comments

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This article was originally published on Mrs. Daaku Studio.

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