6 Times When Being Frugal Doesn't Pay

By Joanna & Johnny
culled from:dailyfinance.com
For some reason, the word "frugal" has always made me cringe. Growing up, it was usually accompanied by my parents telling me that whatever I'd asked for was too expensive. Thus, it became a pejorative term, one I despise to this day. And yet, as a recently minted adult, I live a frugal life with my husband. With our trusty budget by our side, I now use the word "frugal" with reckless abandon.

But frugality still isn't always a good thing. There are times when being cheap just isn't worth it. As someone who still loves a good splurge, this fact is music to my ears. Here are six times when it doesn't pay to be frugal.

1. Life Insurance

If you're married, and especially if you're married with kids, life insurance is a must. And while we don't recommend splurging on whole life insurance, we do recommend a sizable amount of term life insurance. For instance, for an extra $12 per month, my husband and I could go from having $250,000 in life insurance to $500,000 in life insurance. If the worst case scenario hit, and one of us were collecting on a life insurance policy, would we really feel like it had been worth saving that extra $12 a month? We don't think so.

2. Healthy Eating

When I first met my husband, he was living off frozen burritos and ramen. And while his grocery bill was a fraction of my own, his health was a different story. From mono to strep throat, he was getting sick far more often than I was. Once we got married, we put a few extra dollars into our grocery budget to ensure we'd eat a balanced diet and have a constant supply of fresh vegetables and fruits. But now, we spend much less time at the doctor, which means fewer copays and medical bills. And we still find deals by buying in bulk, taking advantage of coupons and discounts and shopping at inexpensive grocery stores. In the grand scheme of things, eating healthy might mean you'll save in the long run while (fingers crossed) adding a few years to your life.

3. Retirement

Putting money away for retirement isn't much fun when your paycheck is already being drained by taxes and other financial obligations. But if your employer offers a 401(k) match, you're leaving free money on the table if you don't contribute. How does it work? Let's say your company offers a 6 percent match at 50 percent. That means if you put in its maximum (6 percent), it will contribute 3 perfect of your total paycheck each and every month. If you're not contributing or you don't know where to start, do the right thing today and contact your human resources department and claim that free money.

4. Toilet Paper

This is a serious one, folks. We all use toilet paper every day. And the difference between the plush stuff and the single ply is stark. And while their prices also vary, at the end of the day, neither costs that much. So when our daily comfort or discomfort is at stake, why settle for discomfort? It's an easy choice -- say no to single ply.

5. Car Maintenance

When my husband and I have auto work done, you better believe we try to find the best deal. But what we don't do is avoid car maintenance all together. Getting your car's oil changed, tires rotated, brake pads checked and any other routine maintenance may seem like an unnecessary cost. But in the long run, they can save you big by avoiding the need for larger fixes or replacements. And keeping a record of your car's routine maintenance can be a great tool when it comes time to sell your car.

6. Gifts for Others

While it's important to budget how much you can spend on gifts, it's also important to make sure you don't sacrifice generosity in the process. If you splurge on "gifts" for yourself, but skimp on gifts for everyone else, it won't go unnoticed. While we've had to slash our gift-giving budget some years, we make up for it by creating homemade or more thoughtful gifts. So if you're going to go frugal in this area, do it in a thoughtful way.