Frugal backfires

Frugality usually results in savings of money and time, but sometimes it's backfired on me. This week, I'm going to revisit those times when my attempt to being frugal backfired. These were learning opportunities, and I hope that by sharing them, others can learn from my mistakes.

Bulk Buy Backfire

Buying things in bulk can be a big time and money saver. It means shopping less frequently, and things purchased in larger quantities often cost less on a per item basis. Batteries are an excellent example of this; while I might pay 3 times for the bulk package of batteries, the cost of each battery might be 5 times cheaper. This only works out if I actually use up the entire bulk pack of batteries before they expire. When comparing a 10 pack to a 2 pack, I'd have to use up six to break even. Generally, it works out for me, though I do tend to prefer rechargeable batteries.

Some unused, outdated tapes

Years ago, I bought a miniDV camcorder. At the time, the miniDV was the best way to go. Each tape could store 60 or 90 minutes of standard definition video, and 90 minutes of HD video, and for the price to quality ratio, no other format compared. I bought bulk packs of miniDV tapes from Costco. The time recently came when my camcorder stopped working reliably and needed to be replaced. I had moved up to an HDTV by now and started shopping for a new HD camcorder. There are no new consumer grade HD camcorders that take MiniDV tapes. Even if there were, I would still prefer one that takes SD cards for the sakes of convenience. I now realize that buying things like media in bulk is a great idea when the device I'm using it on is relatively new. When it's getting close to the end of life for that device, it's be better to buy media individually.

The cost of "Free" stuff

Occasionally, a well meaning friend or relative may offer me something. A piece of furniture, perhaps; or maybe a computer, for example. I used to accept this stuff all the time. After all, I might have a need for that thing at some point in the future; and if I didn't, there may be value in that thing, I would reason.  As it turned out, the stuff would accumulate. I didn't realize how much until it was time to sell my house and move. Any value this stuff had wasn't worth the effort to sell, so I donated much of it, which cost me time and gas. There were some things that weren't accepted, like CRT monitors and any furniture that might contain bedbugs (they didn't, but spreading fear of bedbugs results in a non-acceptance policy), so I had to dump those things off at the waste transfer station at an additional cost based on the weight of the stuff I was getting rid of, with a $5 minimum fee. From now on, I will only accept this kind of thing if I have an immediate use for that thing; otherwise, I'll politely decline.

Cheaping out backfire

Cheap laptop disintegrating after 2 years of normal use 

When I bought my first laptop computer, I bought the cheapest model I could find - the Toshiba Satellite 1700. It came with WindowsME, had 64MB of RAM, had a 10GB hard drive, and used a Celron processor. The battery life was disappointing even when it was new, the operating system was reported as being the worst OS in the history of Windows, and its limited hardware meant I wasn't going to do much more than web browsing, e-mail, and basic office work like word processing and spreadsheets. Eventually, the hinges that held the screen in place failed. I went back to a desktop for a while. I learned from this lesson, and while I made sure to get a good deal on my next laptop, I also made sure to check that it had the features I needed to truly replace my need for a desktop PC and ensured it had solid build quality. Where I barely got two years out of my Toshiba Satellite 1700, I'm still using the Compaq Presario C700 today that I bought in 2008.

I keep this in mind with anything I buy, whether it's a car, clothing, stereo system, snow shovels, or camera. I don't buy more than what I need, but I do decide on minimum standards and check reviews. Some things, like a hi-fi stereo system or camera, may only ever need to be bought once, and if the car or computer I buy is of a level of quality and has features that are acceptable to me, I'm more apt to get more use out of them. If I consider these things on a cost-per-year basis, a $700 laptop that lasts 5 years is a better deal than a $500 laptop that lasts 2 years. A $24,000 car that I like and keep for 12 years is better overall than a $12,000 car that I'll want to get rid of after 5 years.

The Bargain Bin backfire

Watched once, twice at most, now gathering dust

I used to peruse the bargain bins all the time, in search for video tapes to add to my collection. When DVD's made VHS obsolete, I searched those bins for DVD movies. Now I've had to get rid of those VHS movies and now have shelves full of DVD movies I never watch, because I've watched them once and now wish to watch something new and different on Netflix. As it turns out, the cost of Netflix is similar to that of a bargain bin movie every month, with much greater selection. 

When cheap "Lite" Internet access isn't

Once upon a time, I thought I'd save some money by subscribing to a "Hi Speed Internet Ultra-Lite" package. It was the cheapest package, and offered a 2GB bandwidth limit. What I failed to realize was that overage charges were $5.00 per gigabyte, and it didn't take much before I was paying more for "Ultra-Lite" than I was for the higher tiered "Extreme" package. As it turns out, it doesn't take very many OS updates these days to hit that 2GB bandwidth limit.

The high cost of used

I used to shop at Value Village, until I discovered I could get some items they sell for less money brand new at places like Costco and Wal-Mart. Not to mention the unwanted extras that might come with used clothing, like ringworm. This is a case where it pays to shop, and not assume that a thrift store is really going to be thrifty. This was recently covered at another frugal web site I enjoy reading, Squawkfox (click here to read).

Conclusion

There are cases where frugalism can be taken too far. Like everything else in life, it's about finding a balance. I'm still learning, but am glad to have had the opportunity to learn from my mistakes. I hope others can as well.