Spending dos and don’ts

When trying to live a frugal life, the emphasis is always on saving money. There are times though, that it doesn’t make good sense (financial and otherwise) to try to shave down spending. By the same token, there are products and services that will just set you back when you splurge.

Here are some spending dos and don’ts.



Do spend on a housing inspection

When tallying your totals for your housing budget when shopping for a house, make sure you make ample room for a housing inspection.

A lot of housing disasters live between the walls, and aren’t obvious to the untrained eye. This is the case where a small investment now can save you big bucks down the road. If your home inspection uncovers a faulty home, you may want to walk away from the deal, or write conditions into the offer. If you skip the inspection, you save in the moment, but it then becomes buyer (and budget) beware.

Do spend on education

Straight up, education is an investment in yourself (or your children), so spending in this category is a good idea. The key here is to try to minimize the amount of debt you need to take on to fund it. If you are going back to school, look at using RRSP savings instead of taking out student loans. For your kids, start a RESP or other education-based savings plans when they are young.

Don’t spend on electronics

I realize that this is a crazy statement today. I’m not saying don’t spend on electronics, but don’t overspend and be very vigilant in watching for sales. Reason being is that obsolescence of all electronics is built in to the business plan. As soon as you make this purchase, you’ll be contemplating purchasing a new one in the near future.

Don’t spend on bank fees

You are the consumer, which means that you are fully in the driver’s seat when it comes to your banking. Ask your bank about their fees, and ask them to give you a plan that best suits your needs, so that you’re not overpaying on fees. Better yet, shop around to find a bank or credit union that charges little or no fees, based on your usage needs.

And never visit ATMs that don’t belong to your bank. You’re lookin

g at adding several dollars per transaction. That’s just throwing money away