When you’re trying to save money on a tight budget, you spend a lot of time looking for ways to save a buck. From packing brown-bag lunches to canceling your cable, you’re always focusing on ways to spend less. But sometimes, going out of your way to save can backfire. When you scrimp on certain kinds of purchases, you actually end up spending more money in the long run.
For instance, suppose you always buy cheap umbrellas from the dollar store. The problem is that they break after one or two rainstorms and have to be replaced. Over the course of a year, you end up spending much more than you would buying one decent umbrella that holds up to use. Plus, you have to spend more on laundry because your clothes keep getting soaked.