Penny Wise, Dollar Foolish

Many families look for ways to trim expenses and save money, especially around the holidays. Eat out less often ... Rent movies instead of going to the theater ... "Brown bag" your lunch ... Sometimes, however, it is simply not wise to cut too many corners. In the pursuit of a penny wise lifestyle, we may at times become dollar foolish.

How do we avoid falling into the common traps? Knowing when it's wise to save money, and when you just need to walk away from the so-called "bargain". Here are some guidelines to help you along the way.

1. Traveling for deals: Driving a few miles more for cheaper gas might seem like a good idea at first, but consider the cost in gas and time driving there. Likewise, account for travel expenses for deals at stores that are a distance away. If the "savings" do not add up, the trip may cost more in the long-run.
2. Car leases: An inexpensive alternative for some ... a bad buying decision for others. Some drivers are unable to stay within the lease mileage limits and get nailed with charges that may amount to 10 cents for every mile over the max.
3. DIY oil changes: A $20 dollar oil change might not be such a bad deal when you consider the time, cleanup time, and meager savings you get from doing it on your own. Let the professionals do it, and invest your time in other endeavors.  
4. Water filters: Buying bottled water by the case isn't expensive, but think about how much money (and back pain) you can save by installing a water filter and carrying a durable water bottle.
5. Quality shoes: Sure, you may be able to find a good deal on footwear, but the lower the price, the greater the risk of blisters and daily discomfort. Invest in quality shoes that will take you through a workday for years, rather than months.
6. Baby furniture: Cribs, car seats, high chairs and other baby items must scream "safety." You probably do not want to collect your baby furniture at the local garage sale and risk an expensive accident.
7. Day care: There may be a reason why that nanny you found in Craigslist came with such a low price tag. She may be unreliable and inexperienced. If that is the case, you may pay a lot more in the long run. Always look for reputable day care that will provide your child with the necessary care and your priceless peace of mind.
8. Long-term gym memberships: Sure, you may save on the monthly fee, but most consumers do not keep up their workout routines and end up paying the monthly gym fees, even when their backside is glued to their couch. A higher priced, short-term commitment membership might be a better option until you are sure you will stick with your plan or buy a

Frugal and thrifty doesn't always mean buying what is cheapest. Always invest in quality, and research specifications for items that you will use heavily. They will last longer and pay for themselves in the long-run. 

Need help budgeting? Try AltaOne's online personal finance manager, BudgetPro. Users of financial management tools like BudgetPro report saving an average of $100 a month by tracking spending and setting financial goals. Best of all, it's free. 

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