If you're new here you may want to join the 5000+ smart shoppers that that subscribe to my RSS feed or Free Newsletter. Thanks for visiting! - Dean aka Mr. Cheap Stuff

Saving money is great but there is a fine line between being smart with your money and being a "cheap bastard".  Everybody knows of a “cheap” friend or family member, if you don’t, you might be that person! 

Cheap people drive all the way across town to save 50 cents on soda or 5 cents on a gallon of gasoline.  They also might spend 10 hours of online research to save $20 on a airline ticket (Dammit, I have to admit I have been guilty of this one).  Cheap people also might not want to contribute money for group or work activity or make a big deal when they do pay for things.

While I am all for saving money, I think you should always consider the hidden costs of saving money.

Why Do You Save Money?

So why do you save money?  You always want to begin with the end in mind.  A lot of people save money just to save money, in other words they might save $10 at the grocery store but blow $1000 on a new LCD television or some other liability.  Another example is some people might skimp on a gift for someone they care about and during that same week they spend $20 getting their Starbucks fix.

Finding your "reason" does require some thought.  I’m sure there are many parents out there that could be putting the money that they save towards their child’s education instead of more toys or video games. 

Why Be Rich if You’re Still Cheap

Many people have the idea that being cheap is an great way to get rich or accumulate a lot of money.  The problem with becoming rich by being cheap is that you are still cheap. Think about it, why be rich if your going to behave like a cheap person.  Many people think when they have more money then I’ll stop being cheap. The problem is tomorrow almost never comes.

"I think those type of  "cheap” rich people give rich people a bad reputation."

Personally, the reason why I choose to be smart with my money is to be generous or to give it back.  Don’t get me wrong I enjoy my liabilities and toys but ultimately I do it so that I can be generous to the people and causes I care about.

Look at Value not Price

To go one step further I think it is important to look at the value of things not just price.  For example, the price of staying at a nicer hotel for your family vacation may be more expensive, but the value is very high because your family gets to enjoy the superior  amenities, location and excellent service. 

If you had chosen the cheaper hotel you would not get a good location, you may have a higher chance of dealing with bad service (potential stress) and your family might not enjoy their hotel stay.  So you could get the cheaper hotel and save money but in terms of value the nicer hotel is a much better deal.

The 80/20 Rule

 
"Buy what you love not what you like" - Louis Vuitton Shoe Photo Credit

I remember reading this article that said most people’s wardrobes follow the 80/20 rule, meaning people only wear about 20% or less of their clothes on a daily basis.  I have to admit that this is true for myself.  In my closet is a bunch of clothes I haven’t used in years.

By taking this rule into consideration, why not buy nice clothes that you will use often.  Many people skimp on clothes because it might be expensive, but buy two pairs of cheap clothes that they don’t end up wearing.  Again, you want to look at value not price.  If you spend a hundred dollars on a really nice dress shirt or blouse that you really love and will therefore wear often, then you will get your money’s worth.

"Follow the 80/20 rule.  When it comes to clothes, don’t look at price, buy only what you love not like."

Stop Being Cheap to Yourself

As you can see being cheap really means cheating yourself.  Again, it is nice to save money but always consider the hidden costs.  Can you put values on relations with friends and family, your integrity, time and happiness?  Also, don’t forget to look at the value of things not the price.  Just something to think as the cheapest price is not always the best choice.

Photo Credit

Walmart Return Policy - Submitted by Sandra

If you buy something at Walmart and then it goes on sale, they will refund the difference in the price back to you. Customer service says that if you have your receipt, they will then give you the difference in cash or you can return the item and rebuy it at the lower price. I haven’t tried this after more than 30 day.

Gifts For Everyday people that are Great but Cost Less - Submitted by Sandra

1. Giving a gift of money can seem inappropriate unless done correctly:   Savings bonds can be purchased in different
denominations.  Personalize the gift by adding a note that shows thought given to the receiver.  "I know you have always dreamed of going to Hawaii - here’s a start."

2. Gift baskets can be so enjoyable but inexpensive: If you have a wine   lover, give a nice bottle of wine, wrapped in a
napkin and two wine glasses nestled into a lovely basket. Think about the person who will be receiving the basket and make it appropriate.

3. What about a plant?  They are loved everywhere by most everyone.  One of the nicest gifts I ever received was a fairly inexpensive plant in a coffee cup with a spoon, for my office desk. I am a notorious coffee hound and one of my co-workers remembered.  These can be dressed up or down depending on the situation.

4. What about gift certificates? A dinner out can be the most fantastic busy mother’s gift.  Movie tickets and restaurant certificates can make a memory they will remember came from you.

5. Is there a cook on your list? You can get inexpensive herb gardens that grow right in the kitchen that would thrill most home cooks.  How about some new pot holders along with a new gadget or two all wrapped up in a bright new dish towel?

6. My daughter got a great gift last year that cost the giver less that $30.  It was a Ladies tool set…smaller that the type most men would use.  She just loved it as her husband did……no more hunting for his tools.

7. Do you have a book or magazine lover? Give a subscription to their favorite magazine. Books……..find out their favorite
author and get several books along with a nice tea and a cute little cup.

8. What about photos?  Make an album or get a favorite photo screen printed onto a special tee shirt. One of the nicest ideas I saw with presentation was a frame with the photo inside, wrapped in the tshirt. When they saw the photo also on the tee, they were completely surprised.

9. I remember the year I gave one of my daughters a cookbook of my favorite recipes. My other two daughters wanted one too, even though they didn’t cook.  They wanted it just because it had been mine and it was food they ate growing up. I was surprised.

10.Coffee mugs loaded with chocolates, cocoa mix, nice teas, specialty coffees or whatever suits the occasion. Add a package of butter cookies. Tie with curly ribbon and attach a card. YUM