Obsessed with saving money? Buying cheap ends up expensive

I recently wrote a post titled My husband spends too much money… or is it just me? I guess that since I confessed about how I flinch when my husband buys non-essentials like mustard and peanuts and how I obsess over how many squirts of liquid soap he uses to wash his hands, it’s understandable why many readers would think I have an obsession with saving.

And maybe you’d think that since I favor saving money so much, I only buy the cheapest stuff ever.

Cheap means low-quality, low-value

I think it’s a safe bet to say that the cheapest stuff out there is usually the most low-quality stuff, too.

See, in order to provide a really low price that’s well below the market average, a producer has to cut some corners. The materials that go into the product would have to be cheap. The equipment used in production would have to be low-end. The labor would have to be cheap, too, and cheap labor means bad make. (You can’t work minimum wage and tolerate your supervisor demand you give a five-star performance at the assembly line.) So you have all these factors working together to provide a low price, but they also work together to provide a really low-quality item.

Read moreObsessed with saving money? Buying cheap ends up expensive

Talk to Your Fiancé About Money Before You Get to the Altar

This is a guest post by Ryan Harrison. Ryan is a New York native and single dad working on his MBA.

To send a guest post proposal, contact me at [kadebg AT abv DOT bg] .

Many years ago, when a newly married Chris Rock appeared on “The Oprah Winfrey Show,” she asked him: “What’s the most romantic thing you’ve ever done for your wife?” His answer: “I paid off her credit cards.” Not every guy has Rock’s generosity (or money) to pay down his girlfriend’s or fiancée’s’ debts, but we all know someone who’s done it. The reason we do it is simple: We don’t want to marry debt. Changes in behavior and attitude toward money must go hand in hand with paying off bills.

Read moreTalk to Your Fiancé About Money Before You Get to the Altar

My husband’s spending is NOT out of control… but my mouth is?

A female reader, Petya, left me a comment on My husband spends too much money… or is it just me? The reader comment also had a link to her blog, and I was curious to check it out. Her most recent post was titled The art of spending (in two different points of view) , and it was about my post about my husband’s spending. Here’s what jumped at me the first time I read it:

I came upon an interesting article about spending… want to share with you some of what shocked me… I realized that my spending habits are not that bad after all. Not that I was afraid they are, but it’s different when you see that you are far away from any obsessed-to-insanity money-saving addiction. I’m afraid this is not a healthy way of life… there are plenty of things that keep bugging me ever since I read those lines…

Read moreMy husband’s spending is NOT out of control… but my mouth is?

My husband spends too much money… or is it just me?

I’m 28 and my husband’s 35. We met a year ago. Six months later we moved in together, I got pregnant and we got married. Everything is great… except that I get angry each time my husband spends money.

For example, we’re at the store and he buys potato chips. He doesn’t need them. He’s not buying them because he’s hungry. He just “wants some.” Or he takes the car to work even though he has a buss pass. He doesn’t need to take the car. He just “doesn’t feel like taking the bus today.”

Now I don’t mind it when he spends money on buying a good jacket instead of a cheap Chinese-made model. And I didn’t mind it when we recently bought a pricy range hood for the kitchen – it was actually me who insisted on not getting the cheapest one.

So I don’t have a problem with him spending money on stuff that lasts. But I do have a problem with him wasting money on everyday perishables like snacks and drinks. (I can’t even call it “food” because, well, that’s not food.) And if we want to afford the quality items in clothes and appliances, we have to cut the spending on everyday junk. We shouldn’t take the car and spend money on gas when we have a buss pass. And we shouldn’t use a lot of water when we shower.

And by “we” of course I mean you, honey.

Read moreMy husband spends too much money… or is it just me?

Top 3 biggest financial mistakes to avoid (I made them all)

silly meI never cheated in school.

My parents raised me to be a straight-A student. Not only was it important to have good grades, but also to have those good grades backed up by actual knowledge. Cheating was dishonest, wrong, and probably was one of the seven mortal sins.

Fast-forward to when I’m 25 and Farmville is on everybody’s Facebook. My 10-year old cousin shows me his farm, and it looks straight out of PIMP MY FARM. It’s huge and it’s seriously pimped. He has just about every crop and animal in the game (except maybe a unicorn)… wow! My cousin is a genius.

So I pat Einstein Junior on the shoulder. He grins, then logs out of his account to check… his other accounts? How many of these does he… TWELVE?! And He uses them to… pimp his main account?! Oh God my cousin is a sinner!

Read moreTop 3 biggest financial mistakes to avoid (I made them all)

Takes money to make money: The Formula for getting rich (the one that works)

top of the mountainThe Formula for getting rich is NOT about compound interest, internet business, multi-level marketing, FOREX trading, stock options, real estate, mutual funds or starting a business. Getting rich through saving and “the magic of compound interest” would take ages. Internet business is not for everyone. MLM (multi-level marketing) is a scam. FOREX trading is more about chance than about skill. Real estate requires a huge up-fron investment. And starting a business has less than 5% success rate.

Yet there are rich people in all those fields. There are real estate millionaires and guys who made fortunes off FOREX. But you can’t wrap your head around how they made it, exactly. Did someone help them? Or was it just the plain old “hard work and a little luck?”

Well, the truth is, it doesn’t matter which path you choose. All that matters is how prepared you are when you set foot on your path of choice. So actually, it doesn’t really matter whether you choose real estate or business or FOREX trading. All that matters is how you’ve lined up your pawns.

Here’s what I mean.

Read moreTakes money to make money: The Formula for getting rich (the one that works)

5 Things Nobody Tells You About Being Poor

This AWESOME piece of writing is by John Cheese, originally publiched on cracked.com.

#5. You Get Charged for Using Your Own Money

McDonalds jobs…Let’s say you’re running late for work and hurriedly stop to get gas, paying with a bank card. In your haste you forget to write the $55 down (gas being $4 a gallon, you know). So while you spent the last week until payday thinking you had $50 in your account to absorb minor purchases, you actually were $5 in the red.

Read more5 Things Nobody Tells You About Being Poor

Should I quit my job and start a business? (No)

dark early morningYou shouldn’t “should” anything.

After I googled “should I start a business,” it felt like the whole internet was trying to persuade me that indeed I should; that whatever job I had couldn’t possibly be better than running my own business, and that if I wasn’t working on a start-up already then obviously I had to “stop making excuses.”

My husband and I like the idea of having our own business one day. But currently, starting a business right now is not a good idea. We don’t have the money, and with a baby girl coming in Jan 2014, we’ll have a lot on our plate. We just recently got married (planned a wedding in three months which definitely soaked up all our energy during that time) and we’re still finishing up our apartment remodel. Don’t anyone dare tell me that we “should” be working on a startup or that if we’re not, we’re “making excuses.”

And what about you?

Read moreShould I quit my job and start a business? (No)