Corners you shouldn’t cut (and some you can).
Summer is upon us and the temperatures are rising. Hopefully you are taking time to slow down this summer and getting in good time with family and friends!
As I have been traveling for both fun and work, I’ve noticed that everything feels expensive right now: groceries, hotels, tickets for fun adventures. I feel like my dollars are not going as far as they did just a few years ago and I know I’m not alone in this. When this happens, we can start looking for places to cut expenses and tighten our budgets down a little bit. It is good to regularly assess our spending and make cuts or changes as needed, but there are areas where you get what you pay for. Cutting too much may cost you more in the long run. This month, we are going to share our thoughts on areas to not cut corners in both your business and personal life. Here are some areas we will cover:
Professional Services: Whether it's a lawyer or an accountant, you don’t want to pay for unnecessary things, but you also don’t want to find a bargain-basement provider either. Down the road, cutting corners in this area could cost you big $$ in IRS fines, liability issues and a myriad of other areas. Get recommendations from trusted friends and professionals to find the right person and price point for yourself and set your business and your personal finances up for long-term success
Your health: Because we live in one of the only developed nations where we still pay through the nose for health care, insurance, etc, it can be easy to put off check ups, not take preventative steps and try to cut medical expenses. There are definitely strategies to save money on health care that are smart and useful, but cutting too much can be detrimental. Make sure you get all of the preventative checks covered by your health ins. Set up an HSA if you qualify to keep more of your own money pre-tax. Find an activity you love to stay active and spend the money to keep consistency and enjoyment at the forefront and spend a little more to have healthy food options at your fingertips. These investments in your health will pay dividends throughout your life.
Quality over quantity: I only buy cheap earbuds and sunglasses because I lose them within 6mo generally. However, I have kitchen appliances I’ve had for 20 years because I splurged on the “expensive” option and have never regretted it. When it comes to day to day items, there are times when it pays to invest in quality. That doesn’t always mean you have to spend a ton. I have a couch that was originally 5x what I paid for it and will probably still be comfy when my grandkids come to visit, but buying second hand allowed me to get the quality without the big price tag. These areas and values will differ personally, but it is good to think about where quality is worth the added price and where it doesn’t make sense for you.
We would love to hear what areas you feel like it is important not to cut corners and what you have splurged on that you don’t regret. Feel free to share in the comments or send us a note!
