You hear it all of the time: In order to live a prosperous life you probably have to spend less money. There's wisdom in that advice since most consumers have little or no savings and many spend more than they make. However, spending less isn't always the best strategy. There are some areas of our life where trying to find the cheap way out may actually hurt more than help. Here are some examples of when spending more money is a smarter financial choice.
Your Time Is Valuable
Why hire a cleaning service when you're able to do it yourself? Maybe you're turning in your leased car and it needs detailed. Why hire somebody when you can do the job just as well? The reason it could make financial sense to hire somebody is because your time has a value. If you're trying to build your career or grow your small business, cleaning and detailing take valuable time that can be spent doing more profitable activities. That doesn't mean you should go in to debt to hire a cleaner, but if you have the funds to do it, it may be more profitable to outsource.
When was the last time you bragged to your friends that you bought a certain outfit for only $10? How many times did you wear it before it fell apart? Wearing high-quality, well-fitting clothes makes you look more put together, and that's worth the extra money. Ideally, watch for those high-quality clothes to go on sale.
Going out with your spouse tonight? Nothing is more important that the valuable relationships we have with other people, and preserving those should cost some money. You don't have to rent a private plane, but spending a little more on a nice restaurant is fine as long as you aren't putting out $100 for a meal for two every weekend.
There's a difference between value and low price. Tools, including those found in the garage and the kitchen, come in varying qualities. The lowest quality items are sure to break long before the higher quality items. If you need a big tool for a one-time use, rent it. If you plan to use it regularly, purchase high-quality tools with warranties.
Next to your health, your money is probably the most important asset you have. If you don't have experience managing your investments, find a trusted advisor to help. Look for a fee-only advisor that comes well recommended from friends or family.
If you have a professional career, you know that attending industry conferences is not only expensive, but getting there can cost as much. Conferences are a great way to meet others, make new contacts and learn more about your career. Money spent to advance your career is often worth the high price tag.
You can save a lot of money by not having renters insurance, long-term care, life and even travel or wedding insurance. If you're not the type to get sick, you can likely put this off a little longer than some people. For expensive vacations, big weddings and if you're middle aged, extra insurance may be worth the extra expense.
The Bottom Line
Don't assume that the most affordable option is always the best option. Saving money on groceries, gasoline and other small expenses is good advice, but you should always think long-term. If you have to buy two cheaper models when you might have only had to purchase one of the more expensive item, cheaper isn't better.