Penny Wise, Pound Foolish

There are a lot of clichés with no merit in reality. The adage “Penny-wise, pound-foolish,” is not one of them. A lot of my advice saves the sorts of pennies that turn into big bucks over time. However, there are some places in your life that saving is not really worth it.

Nutrition – You can definitely save a lot of money on groceries if you eat nothing but beans, rice, and occasionally ramen. However, it’s not a smart way to save money. You’ll spend more on medical bills when you develop rickets or scurvy than you ever could save. Plus, if you don’t give your body what it needs daily, your quality of life will diminish. When you don’t feel your best, you’re much more likely to splurge in other areas of your life to compensate.

Travel – For years, my husband and I dreamed of traveling to Hawaii. We kept putting it off for more practical (i.e. boring) goals. Finally, we decided the time would never be perfect, so this past July we went for it. We were wrong -- the time could be perfect. Those seven days were probably the best seven of our lives. We could have saved thousands of dollars by staying home, but that money was better invested in our happiness that it could have been in debt reduction.

Education – Whether going for your doctorate or going for your GED, the cost in time and money to further your education can be considerable. This is another area in your life where the money isn’t spent, but rather invested. The intangible benefits for your mind and spirit, coupled with the very tangible benefits in your career, make this a better use of your money than debt reduction. Besides, if you learn more about what you truly love, you almost always make money from it that you never expected.

What else in our lives takes precedence over debt reduction? Let us know in the comments section!