The rich advise: Three things you should not save on
Many people choose to save, either to make it easier to get by the next paycheck or to save enough for investments and a better future.
But some people save on the wrong things, so they often buy the same thing twice, which is not profitable in any case. Two successful people, who built a business and are now millionaires for Goubankingrates explain the three things you should never skimp on.
John Davenport and his wife run the craft distillery Three Crosses Distilling Company and invest mostly in real estate. Brenda Christensen, on the other hand, is the CEO of Stellar, a public relations company.
The Davenport family fell into the trap of buying cheap clothes, but very quickly realized that the money they had spent on low-quality clothes had to be spent again, this time in a larger amount, on better quality clothes.
“Unbranded clothes from discount stores or big chain stores were not durable. It will fade, shrink, or lose its shape, and we end up buying higher-quality clothing that we're trying to save money on,” says Davenport.
Quality household appliances
Christensen tried to save money by buying cheaper appliances, but that only led to more frequent and more expensive replacements. So she adjusted her approach and started buying products she knew would last.
"Investing in high-quality, durable products, even if they cost more, is more profitable in the long run." It reduces the frequency of repairs and replacements and provides a better return on investment and results in less inconvenience,” she explains.
Home improvement and repairs
Whether you live in a house or an apartment, many people try to save money by doing home repairs themselves instead of paying a professional. They feel there is no need to pay someone to mow the lawn or tile.
Christensen has been doing this for a while, more specifically, she landscaped her garden and cleaned the pool herself. At first, this, as well as buying cheap household appliances, proved to be a solid method of saving, but she soon realized that it was taking up too much of her time, which could be spent on work and earning money. So she decided to hire someone to do it for her, which turned out to be much more cost effective for her.
Hiring a handyman for home repairs is not only an efficient way to save time, but also money. If you are not an expert in a particular repair or installation, it is better to entrust the work to a professional.
This way you not only avoid wasting time, but also reduce the risk of additional costs that you might incur if you try to do the job yourself and then have to pay someone to fix all the mistakes.