There's a famous saying “pennywise pound foolish” and its meaning is simple; we often work our asses off to save a few pesewas but don't take into account the bigger picture of what it's costing us. Poor people try to save a little money to accumulate a little wealth but often those money-saving choices are not actually saving at all, in fact, they're costing money. So be sure to read this to the end to understand the important lesson of this article. Below are 5 ways poor people think they’re saving money.
1. Buying Cheaply
I see it I like it, I want it I buy it. Well, that's all fine and good except if you keep buying cheap quality clothing, it's not going to last you very long. After a couple of washes, your clothes will start to fall apart, the fabric will stretch, colours will fade and before you know it you can't wear that item anymore.
Poor people think they're saving money by buying the cheaper options but when you have to keep buying it, it ends up costing the same as buying the good quality item in the first place. It would be more beneficial to save that money and buy once, you'll look better in the item, it will feel better on you and it will last longer.
2. Buying a Bigger House Further Away From the City
Lemme make this one practical. Kobby and Mike both have GH₵ 100,000 to buy a home. Kobby decides to buy a bigger modern house further away from the city while Mike opts for a smaller home in the city that needs a bit of work. Here's a breakdown of the cost; Kobby has GH₵ 100,000, his house costs GH₵ 75,000, he buys new furniture to look the part for GH₵ 25,000. Mike has GH₵ 100,000, the house costs GH₵ 95,000, Mike doesn't worry to buy new furniture and makes do with what he already has.
Kobby spends a fortune getting himself to and from work, he wastes time every day during the commute, sadly, his house doesn't gain much value and when it's time to sell he makes little profit. What Kobby saved on the initial purchase is a loss on other expenses. The rich guy, in this case, Mike, slowly renovates his home, he doesn't have to spend a lot of money on gas and has plenty more time to do those renovations. Eventually, he ends up selling his home for a tidy profit and makes a sound investment as a result.
3. Obtaining a Cool Second Hand Car to Bargain
There’s this controversy about how new cars lose so much value and it's better to buy a second-hand car. But there's a stark difference between buying a reputable brand that is safe and buying a car just because you think it's cool. With used car purchases, if you don't do your homework properly, it could cost a fortune in the long run. Poor people will skip having their car checked by a mechanic to save on costs and then buy a vehicle based on looks without proper checks being done. The maintenance and repairs of the vehicle can really mount up over time.
4. Eating Unhealthily and Buying Convenient Foods
Dietary choices affect our entire being; we can't perform well if we've been eating processed foods, convenient food or takeaways. There are several socio-economic factors that explain why poor people gravitate toward foods that are high in fat, salt and sugar and low in nutritional value. The obvious reason is that it's cheaper but there's also a not so obvious reason, which is, making fresh healthy food from scratch is time-consuming.
Poor people are often working several jobs to make ends meet trapped in a financial, mental and emotional crisis that requires every ounce of energy to survive the day so by the end of it, it's a case of buying whatever is convenient.
5. Buying In Bulk
Super deal, unbelievable savings, and buy two get one free are all great at catching your attention and making you think you're really saving some cash. However, poor people end up wasting money by doing this because they don't need 40 cans of tuna or 30 bags of spaghetti. It's even worse when it comes to fresh produce or perishables.
Stores need to turn over stock quickly so they create these unbelievable deals and you end up taking 10 bunches of lettuce home. How much of that will you genuinely eat and how much is gonna go to waste.
And there are other consequences of bulk buying; this surplus really takes up a lot of space, you also tend to eat more because if you've got 10 packets of biscuits you've got on special, you're likely going to eat 10 packets of biscuits you got on special.
Thanks for reading. See you in the next article.
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