A frugal person is, by nature, economical. We like to save money on everything we buy. We’re not cheap; we seek value. That can mean spending more on an item to get quality knowing it’ll cost us less in the long run. It also means spending more on something we value because our thriftiness on other items affords us that ability.
That being said, there are also items we overlook cutting costs on. These sacred cows can kill our desire to live a truly frugal life through money leaking out of our budget. These are not sacred cows because they can’t be touched but because no one thinks to touch them, which makes them appear to be sacred cows. Take a look at the below items to see if you’re letting a sacred cow gobble up your frugality.
Rent
It’s common practice to negotiate the price of a house. In fact, it’s usually foolish not to and is expected to a certain extent. Doing so can save you thousands of dollars upfront, not to mention over the life of a mortgage. Why don’t we apply the same mindset when renting an apartment or condo?
True, you won’t save thousands of dollars but you can still save money. You may not be able to save money when first renting, though it should certainly be a consideration when you sign another lease. If you’ve been a good tenant, the landlord will likely do what they can, within reason, to keep you happy. Keeping you at a reduced rate, or a lower increase will be cheaper for them than to take the time to find a new tenant. You benefit from less drag on your budget. It’s a win-win in many cases.
Maintenance Items
How often do you accept the price quoted on a maintenance-related item as set in stone? Do you negotiate and ask for a better price? If not, you can be missing out on savings. This can be done with anyone who provides you a service, from the auto repair place you use to someone who comes to repair an appliance or other item in your home.
You may feel uncomfortable negotiating. That makes sense. Simply ask at the time of payment if it’s their best rate and let them give a number. They may say it is, but the worst they can do is tell you they don’t negotiate. If all else fails, offer to pay in cash to see if they’ll come down in price.
Investment Fees
Many know investment fees can be bad, though how often do you look into what it actually costs you? The Securities and Exchange Commission shows that a 0.75 percent difference in annual fees on a portfolio of $100,000 will cost you an additional $30,000 over the course of 20 years. That is a lot of money! If you have more than $100,000 invested, you will only lose more money.
There are many ways to be more frugal in this area. If you pay to have someone manage your investments you can make that a priority as you interview potential candidates. If you’re a DIY investor, you can more directly impact this cost. From negotiating a lower commission to less active trading, you will lower your fees and, in turn, keep more of your money working toward accomplishing your investment goals.
Medical Care
Dealing with insurance is a hassle. Not only is it expensive but it can be confusing to manage when you need medical care. Don’t allow this hassle to keep you from saving money. In many instances, doctors and dentists will offer a reduced price, you simply have to ask. Again, the worst that can happen is hearing them telling you “No.”
You can negotiate such services in many ways. We have four children in our family. With each birth, we asked the billing department what they could do for us if we paid the bill in full. In each instance, they lowered our payment by 15 percent. It may not seem like much, but it saved us several hundred dollars each time.
The same idea can be used when in need of routine lab work. Call around to see what different doctors and labs charge. You’ll be surprised at the difference. You can either use that information to negotiate with your doctor or choose to get the lab work done at a different location. If it’s routine work, there’s no sense in paying hundreds of dollars more than you have to.
It’s easy to think certain items or services can’t be negotiated for a lower price. Some may be unable to be lowered for certain reasons. Don’t kill your frugal tendencies by assuming they can’t be had for a lower price.
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4 Sacred Cows That Kill Your Frugality originally appeared on usnews.com
