Frugal Friday: The Hidden Costs

Frugal Friday: The Hidden Costs

Posted by admin on Friday, July 20, 2012

I love the feeling of getting a "good deal", don't you? Marketers, advertisers, and store designers know all about that feeling. There's always some kind of SALE, DISCOUNT or CLEARANCE going on that making us feel like we've gotten a "good deal". Unfortunately, I've discovered that there are times when being TOO frugal can end up costing MORE. For me, taking time to think about the TOTAL cost of purchase helps me to avoid some of those frustrating moments. It's easy to see the price listed and even figure in tax (if applicable). But the total cost of purchase is really much, much more. Here's a few hidden costs that I've found are important to remember before you buy something you think is a "good deal":

1. TRAVEL COSTS - Do you consider the expense in time and money for travel to and from the store as part of your total cost?
2. MAINTENANCE COSTS - Have you considered that the cost of buying something also includes the labor, time and money that you spend to maintain, clean or repair that item? 
3. STORAGE COSTS - Have you thought about the costs in time and money to store and organize what you buy?

Here are some examples of hidden costs that you may not have thought about for a few specific items.

• CLOTHES - $ and time to travel to store or shop online with shipping, $ to buy, $ for running the washer and dryer, $ for laundry products, $ and time for ironing, $ and time for mending, $ for dry-cleaning, time for folding, $ for storage (hangers, dressers, boxes, bins, etc). 
• TOYS - $ and time to travel to store or shop online with shipping, $ to buy, $ for batteries, time and $ to fix, $ for cleaning supplies, $ for toy organization supplies (boxes, bins, shelves, bookcases, etc).
• VEHICLES - $ and time to travel and test drive, $ to buy, $ for insurance, $ for gasoline, $ for maintenance (replacing fluids, cleaning), $ for storage space (garage, shed, etc.), $ for repairs, etc. 
• HOMES - $ and time to travel and look at homes, $ for down payment, $ for closing costs, $ for insurance, $ for interest over lifetime of the loan, $ for cleaning costs, $ for heating and cooling, $ and time for repairs, $ and time for landscaping, $ for furniture, etc., etc. (I could go on for a while on this one, but you get the idea). 

It's amazing all the hidden costs that you can come up with when you really sit down and think about them. Next time you want to make a purchase, I challenge you to sit down beforehand and list all of the hidden costs for that purchase. Over time you will get better at resisting impulse buying because you've adopted the pattern of thinking your purchases through beforehand.  And it's easier to say no when you see the TOTAL cost instead of just the glittery price of an item on sale.

What are some hidden costs that you've discovered in your purchases? 

Linked to: Frugal Friday, Thrifty Thursday, Hearts 4 Home