Penny Wise And Dollar Foolish-Part 2

It would behoove you to watch your credit card bill like a red-tail hawk although some consumers are not too worried about such potentially large bills. This approach should apply to cable or cell phone bills too. I’ve had conversations with people who ignore big ticket item bills like credit card bills but are obsessed about being overcharged at the grocery store, restaurant or having their coupons scanned incorrectly. Is it good policy to just focus on smaller and less meaningful expenses at the expense of ignoring big-ticket items? Would this approach qualify consumers for the penny wise and dollar foolish club?

Are you willing to forego paying attention to your credit card bill where a 5% error on a $1500 monthly bill could cost you $75.00? At the same time, you are steadfast that they give you back the correct change at Starbuck’s or the gas station. Mind you, I’m not condoning being overcharged. How many small ticket items would it take to equal one overcharge on your credit card bill?

I guess it can be simplified to watch your finances very carefully – especially when it comes to a large sum of money where a small error could really cost you, the consumer.

Another possible penny wise and dollar foolish example is your monthly cell phone service fee. You have people who are interested in saving 10% on the monthly cell phone bill but often have to sign a 2 year service agreement. Initially that agreement might make sense but with so much competition in this industry and many more cell phone providers today who are willing to provide more inexpensive monthly service without a service agreement, is it always a good long-term deal to sign that 2 year agreement?  If you assert yourself, you may be able to negotiate a month-to-month contract – to provide flexibility with a strong chance to save money in the end. You’re well positioned to save money month by month but know if you have issues or you’re more inclined to think it’s less of value than it used to be, you could shop around without a penalty.

Penny Wise and Dollar Foolish from Schwarm Images

The most common example about being penny wise and dollar foolish is saving a few pennies on gasoline although having to drive across town to get there. Your time and environmental costs notwithstanding, how logical is it to drive 5 miles to buy 10 gallons (3 cents per gallon savings) and save 30 cents.

Would this example qualify for the penny wise and dollar foolish hall of fame club?

Does everyone know a neighbor or a friend or relative who spends at least 5 hours per week travelling to several grocery stores and only buying food items on sale? Typically, it is someone who works a 40-hour workweek so their time is limited although they are committed to buy most, if not all the groceries on sale. Is this neurotic behavior? Is this their hobby? Does this get them out in the community among people? At the very least, they should qualify for the penny wise and dollar foolish hall of fame club.

I’m not sure if she’s quantified her weekly savings and I don’t know if she’s quantified how much time she spends per week saving.

It appears money is more important to her than time. That may change…stay tuned.

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