11 Splurges Now That Will Actually Save You Money in the Long Run
Smart shoppers know that comparing prices to find the best deal can pay off. However, buying the cheapest option doesn’t always mean you’re actually getting the best deal. In fact, it can make financial sense to spend more on some products and services to save money over the years.
“Sometimes, we might think we’re saving money on cheaper items, when in reality, splurging a little on the more expensive competitor would have saved us more over the long run,” said Matt Dworetsky, president of Dworetsky Financial in Wall Township, New Jersey. Keep reading to find out when splurging on the pricier option can help save you money over time.
Energy-Efficient Appliances
Spending more on energy-efficient appliances can help you save money in the long run, said Monica Lam, a financial blogger at LuckyMojito.com and mother of two. In particular, shelling out $50 to $100 more for an Energy Star certified clothes dryer can be a worthwhile splurge.
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“Our previous dryer was old and took forever to dry our clothes. Buying a more expensive, energy-efficient dryer is worth it. My clothes are done in less than half the time, and I spend less money on our gas bill,” Lam said.
Energy Star certified dryers use 20% less energy — saving more than $200 in energy costs over the lifetime of the dryer, according to Energy Star. For even more savings, a heat pump model uses up to 60% less energy than conventional dryers.
Programmable Thermostat
A programmable thermostat can cost twice as much as a nonprogrammable thermostat, but Marc Andre, a personal finance blogger at Vital Dollar, said it can help you save money by easily reducing heating and cooling costs while you’re sleeping or when you’re not home. You can save 10% on your heating and cooling if you have your thermostat programmed to be 7 degrees to 10 degrees higher or lower than your normal setting during the day when you’re not at home or at night, according to the U.S. Department of Energy.
“You can buy a programmable thermostat for about $50,” Andre said. “If you save $10 per month on heating and cooling costs, you can recover that cost in just five months and then save an extra $70 in the first year.”
LED Light Bulbs
Haven’t made the switch to LED light bulbs yet because they cost more than traditional incandescent bulbs? A study by the Consumer Federation of America found you’re not actually saving any money by sticking with the less energy-efficient models. In fact, you’re spending more.
Although LED bulbs cost more upfront, they last longer than incandescent ones and use less energy. The CFA study found that a household using at least 20 light bulbs could save $1,000 or more over 10 years by switching to LED bulbs.
Regular Car Maintenance
Don’t think of taking your car in every few months to get the oil or filters changed as a splurge. Instead, think of it as smart use of your money. “General car maintenance is definitely something to spend on to save you money in the long run,” said Nicole Firebaugh, manager of PMR auto repair shop.
“An oil change every three months would take about 35 years to equal the cost of a cheaper engine replacement,” Firebaugh said. “While over a long period an engine replacement will likely become inevitable, regular maintenance can mean the difference between that engine replacement being at 100,000 miles — when the car is just out of warranty but likely not at an age that it is worth trading in with a blown motor — or 300,000 miles, at which point the vehicle would have served its purpose and would likely be ready to be traded in.”
Reusable Safety Razor
Disposable razors might seem like a cheap way to shave. But you can save money over time by spending more initially for a reusable safety razor.
“I was spending about $6 a month on disposable razors which adds up to $72 a year,” said Alice Gerwat, a money-saving expert for Magic Freebies. “I bought a safety razor for just $20 and a box of blades for $12. So I spent $32 three years ago and still haven’t used up my box of blades. The razor itself lasts forever, as its metal.”
Heavy-Duty Backpack
If you’re a parent and have to shell out big bucks every year for your kids’ school supplies, you might be tempted to opt for an inexpensive backpack to save money. However, you’ll be better off splurging on a heavy-duty backpack that will last for years, said Kathryn Mancewicz, a personal finance blogger at Money and Mountains.
“When I was in eighth grade, I actually convinced my mom that spending $70 on a Swiss Army backpack would be a better purchase in the long run,” Mancewicz said. “I ended up having that exact same backpack all throughout high school, college, grad school, and my first year of work. So in total, it lasted me 12 years.” Opting for a cheaper backpack for, say $25, would likely have meant replacing it every year. Over 12 years, that would’ve been $300 spent rather than $70.
Wardrobe Staples
When buying basics for your wardrobe, spending more upfront for quality clothing you’ll wear often can save you more than cheap apparel over the long run, said Dworetsky.
“A quality pair of jeans will last you years, as opposed to a cheap pair that might start falling apart after a few washes,” he said. “Spending more on certain areas of your wardrobe will ensure you look nice for years to come.”
Quality Kitchen Knives
Quality kitchen knives can cost a pretty penny — $50 to $100 or more. But are they worth it? Yes, said Becky Beach, a money expert and creator of Mom Beach.
“One of the best products are a good set of knives that come with a sharpener,” she said. “This can save you so much money down the road since you won’t have to keep replacing dull knives. It will help you to cook at home more often, saving even more money.”
Premium Mattress
With the proliferation of online, direct-to-consumer bedding companies over the last several years, mattresses have become more and more affordable, said Matthew Ross, co-owner of sleep and mattress review website The Slumber Yard. You can find some for as little as $200 to $300. But Ross said it’s worth it to spend more on a mattress.
“The truth is that a lot of these budget beds are just made up of two or three layers of cheap poly foam,” Ross said. They break down and form body impressions within a matter of months, leaving you no option but to buy another mattress.
“In the long run, it just ends up costing you more money because you have to purchase a new bed every two to three years — not to mention sleeping on a cheap bed that sags can lead to back pain and other health issues,” Ross said. Opt for a premium mattress with pocketed coils or an innerspring unit, which will last a decade. You can find one for $1,000 or less.
High-Quality Sheets
Is it worth it to shell out hundreds of dollars for sheets with thread counts of 600, 800 or 1,000? Not necessarily. In fact, a very high thread count could mean the manufacturer has used several thin threads twisted together rather than thicker, more durable single-ply threads that produce a lower thread count but can be of better quality.
It is worth it, though, to spend extra for sheets made with high-quality cotton, which can last up to five years. Cheaper sheets with low-grade cotton sometimes last only a few months because they unravel faster with each wash, according to Bedding Outlet.
Life Insurance
Don’t think of life insurance as a splurge. Think of it as a necessity if you have loved ones who rely on you for financial support. More than 40% of U.S. households would feel the financial impact of the loss of a primary breadwinner within six months, according to a study by LIMRA and Life Happens. Without a life insurance benefit payout to help cover costs, they might have to resort to debt and raid their savings to stay afloat.
You don’t actually have to spend a lot to get ample coverage. A 30-year-old man who doesn’t smoke and is in good health could get a 20-year term life insurance policy with a $500,000 benefit for a monthly premium of about $33 to $40, according to ValuePenguin. That’s a relatively small price to pay to save your loved ones from feeling a financial pinch when you die.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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