Being a Cheapskate Can Hurt

From Fox-9 (MN).

1. Not maintaining your home and car. Failure to maintain your home and car can lead to expensive repairs down the road. You need to spend the money on basic maintenance, such as:

- Change furnace filters. Look for less expensive filters at Menards or Walmart.
- Service your furnace and AC units. Service your furnace now, while technicians aren’t as busy.

- Rake the snow from your roof. Snow rakes and other winter products are now on clearance.

- Change the oil in your car and checking the fluids. Find a mechanic you can trust–it’s probably one of the most frugal things you can do.

2. Not maintaining your own health. Health insurance can be expensive, but worse? Allowing a potentially life-threatening condition build, because you don’t think you can afford the doctor’s visit.

- Shop for good insurance rates online at EHealthInsurance.com

- If you have an actual medical condition, not just a head cold, a trip to the doctor is necessary expense.

3. Not saving money now for emergencies, and later for retirement.

- Most financial advisors agree, set aside enough savings to cover emergencies like doctor visits, car repairs and home repairs.

- You don’t want to put unexpected expenses on your credit card, because then you’re adding interest to an already costly crisis.

- Start small, saving $10 or $20 a week, and then build on it.
- Take your tax return and start a savings account, especially if your credit card bills are under control.

- Do NOT use your retirement money to pay off your current money problems. Those funds need to earn interest, and they can’t do that if you spend them.

4. Using coupons to buy things you don’t want or need.

- Just because you have a coupon, doesn’t mean you have to use it. If you’ll never use the item bought with that coupon, you’ve just wasted money.

- Remember, sometimes the store brand is cheaper than the name brand, even with a coupon.

5. Skimping when it comes to buying real estate.

- Use a licensed Realtor to help you negotiate and navigate the deal. Doing it on your own to save the commission could actually cost you more in time and money.

- Pay for a home inspection. You should never buy a property without it being inspected by a professional first.

- Pay for title insurance. Problems with title to a home are extremely expensive, and insurance covers most of them.

The only objection I have is with #5--a BUYER'S AGENT is the only real estate representative in existence to look after YOUR interests and not the seller's. Since the seller pays the commissions, any agent they hire (Realtor, real estate agent, etc.) is going to work on their behalf and not yours. A buyer's agent splits the commission with the seller's agent, so they both get paid.

Unless you're a real estate investor, or someone who is really adept at buying homes in your area, I'd go with a buyer's agent--this is a 30-year commitment, and the only out is a sale. If you don't want to commit, don't buy a house--the average homeowner stays in a house only 7 years anyway.