Penny-Wise and Pound Foolish: Asserting Financial Maturity in Spending Matters

The driving philosophy behind Our Time Press' On the Money has been one of mindful consumption, media savvy, and educated consumerism. Each week there has been a discussion on the importance of saving, curtailing indulgence, and reducing expenditure. There are financial circumstances, however, that warrant that we spend more in the present to stabilize our financial long-term goals and overall life plans. Avoiding the trap of being "penny-wise" and "pound-foolish" ", the phenomenon of being overly conscientious about trivial financial matters while simultaneously being inattentive to important ones to such an extent that opportunities to save or make large amounts are missed, are indicators of sensible, mature, and healthy financial outlook. 

Nutrition and Health

Taking your lunch to work each day has always been a habit of the financially advanced. With the average cost of a lunch between $8-$10 a day, you can stand the chance to save close to $200 monthly or $2,400 annually. The financial benefits of "brown-bagging" are based on the assumption that the lunch is healthy and provides the body with the needed nutrients to sustain basic or optimal health. It is not uncommon to hear people purchasing large amounts of fried food at fast food restaurants or  resigning their lunch options to cold cuts or a slice a pizza because they are inexpensive and keeps them from spending. If, however, a high fat, high salt diet serves as a mainstay in the life of the "pound-foolish," the small amount of money spared from lunch costs will be offset with price of exorbitant medical costs associated with treating conditions such a chronic anemia, high cholesterol, obesity, high blood pressure, or diabetes. 

Furniture and Appliances

A beautiful living space is important to many of us. When we see our inner style and taste reflected in our immediate environment, we experience a sense of belonging, peace, and connection to it.  While money is always at the bottom line of any purchase, buying a big-ticket item, which will be highly visible and often sentimental for items such as furniture and /or major appliances (i.e. washer/dryer, refrigerator, cooling system)  complicates the decision process. Buying low-quality appliances and furniture because they are inexpensive will be more costly in the long-run due to high wear-and-tear, high turnover due to replacement or dissatisfaction, and repair and maintenance fees. As a rule of thumb, buy once-in-a-while and well, so you don't have to buy often. 

Insurance

Life is full of uncertainty. That is why purchasing insurance , a risk management tool, of most kinds is so important and useful. Not only does insurance protects against catastrophic losses, it safeguards earnings and resources, and provides settlement money so that small claims do not turn out to be big ones. So, if you are planning to buy a plane-ticket  6-12 months in advance, buying travel insurance may come in handy to ensure that unforeseen commitments allow you to reschedule your flight without much hassle. Paying the $20 co-payment to see your doctor as soon as you are not feeling well may save you financially in the long-run. Early detection of an ailment make treatment more cost effective and sustainable. For those of you that drive around a city as congested as New York City without car insurance of any kind are looking for problems. Purchasing the most minimal amount of coverage protect you, your loved ones, and innocent bystanders with medical protection and legal recourse.