Penny Smart but Dollar Stupid
Posted by Cap in Personal Finance |I gotta admit that at times I’m quite the moron.
When asked my best friend what she thought of how I handled money, she pointedly told me that I’m “weird with money.”
“Weird? What do you mean weird. Do you mean I waste money?” I asked her.
“No… it’s just that you’re weird with money.” she told me without trying to hurt my feelings. “Sometimes you’ll make a fuss over a few dollars, but when it comes to some big ticket items, you’ll buy it without a second thought.”
Oh great, I’m a cheap ass, I thought to myself.
But that’s not the point my friend was making. Her point was that at times, I can be penny smart but dollar stupid.
Most of you know that there are a handful of decisions in life that’ll make profound financial impact for the rest of your life: your choice of home loan, auto loan, student loan, career path, and when or if you’ll have kids. These decisions can drastically affect the level of income you take home and the amount of income you’ll have left to save and invest for the future.
When you reach the point in your life to make these decisions, careful research and smart decisions can often yield significant savings.
I’ve often joked throughout the blog about stupid minor things such as the rebates that I forgot to mail in, or how $10 flew out of the window… but you should remember that the big impacts to your financial life are the big financial choices, like those mentioned above.
It’s not that I believe actions we take to cut minor expenses are a waste of time or silly to do; frugality in any sorts of level is all peachy with me. But if you spend the time to save on the minor expenses and neglect to do the full due diligence on the big ticket expenses, then you’ll be doing yourself a major disservice — and don’t forget, you’ll also be labeled as being “weird” with money.
12 Comments to “Penny Smart but Dollar Stupid”
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February 13th, 2008 at 6:08 am
Reminds me of the bumper sticker on my old beater out in the driveway – “Debt is normal. Be weird.”
February 13th, 2008 at 2:44 pm
I like both of those sayings. I definitely am penny smart and dollar stupid. Oh and Frugal Dad, I wish I had a bumper sticker like that, I want to be “wierd”.
February 13th, 2008 at 6:44 pm
I love your blog. It’s very “real.” You are very humble and open to admit that although you try that you aren’t always wise when it comes to spending. That really applies to all of us, but some of us are more hestiant to admit it. Thank you for reminding us that we are all “real.” =)
February 14th, 2008 at 11:58 pm
“Dollar Stupid” – I think thats going to catch on.
Frugal Dad – Do you sell those bumper stickers? I think my car is finally getting old enough where I don’t mind putting bumber stickers on it… :D
February 15th, 2008 at 1:57 am
thanks for the comments guys…
agreed that it is actually a neato bumper sticker. I would sport one too but car isn’t that old yet.
I thought “penny smart but dollar stupid” was a common saying?
edit: nevermind I just remembered it’s penny wise and dollar foolish. haha. woops.
February 15th, 2008 at 7:07 pm
pennywise and pound foolish
http://www.goenglish.com/PennyWisePoundFoolish.asp
nice blog. i read frequently.
February 19th, 2008 at 12:42 pm
hahaah i can totally relate. I’m very weird too :)
February 20th, 2008 at 3:24 pm
Your post made me smile :)
I’ve got this friend who goes beyond frugal – he is almost at the George Constanza level of cheap. And yet every so often it’s like he’ll have a little nervous breakdown and spend several thousand dollars on some highly dubious purchase.
Makes me wonder if there is actually an optimal level of frugality… I guess sometimes we have to let ourselves have a few little treats.
February 21st, 2008 at 7:48 pm
The bumper sticker is from Dave Ramsey. he has one of the best radio shows about money, and one of his mottos is “DEBT IS NORMAL, BE WEIRD”
Just FYI
February 25th, 2008 at 12:13 am
You can buy magnetic sticky sheets at craft stores, put the bumper sticker on the magnet sheet, and the magnet on your car. Change them, remove them whenever you want. You can even scare people by putting stickers they would hate on their car.
February 26th, 2008 at 10:53 pm
Lynda: The magnetic sticky sheets is actually a great idea, especially the scaring of people that baby their car (added to prank list). I wonder will people notice and steal them though. Hmm…
October 31st, 2008 at 7:18 am
I don’t get this blog at all. Why can’t all people just be rich like me? I mean, if I have millions in the bank, why doesn’t everyone else? What stopped you from being as rich as I am? I never fret about money; I’ve never even done a “budget”. I could never imagine limiting my life like that or buying things on sale.