Are you penny wise but pound foolish?

I refer to this post from Consumerism Commentary about being penny wise but pound foolish. Becoming frugal to me has become a habit in my daily life, but sometimes, there are things that we should not avoid spending on. Otherwise, we might end up having to pay a bigger price for it. I see this happening to some of my own friends, and I would like to share their experiences in my blog to give you a clearer picture of what it means to be penny wise but pound foolish.

I had a recent chat with one of my school mates. We haven’t met up for some time and thought it would be nice to know how he has been doing. I realized that he has went for an appendicitis operation earlier last year and had to pay quite an amount for the hospitalization and surgical fees.

Me: “Then your insurance cannot claim arh? I thought maybe they allow you to use your H&S plan.”

Friend: “I didn’t buy any insurance leh. Didn’t see the need for it, every year need to pay a few hundreds.”

Me: “Well it serves as protection for these kinds of situation. Use your recent operation as a lesson learnt. It is not too expensive for our age anyway, and you can use your Medisave account to pay for a portion of it.”

Friend: “Yeah I think I might consider. Thanks anyway.”

Moving on, I have an ex-colleague who received some bad news in one of her free annual health reports provided by the company. It showed that medical attention was needed immediately and there might be a possibility that she had to go through surgery. I have advised her that she get it checked as soon as possible. Due to personal fear and money related issues, she did not want to continue the check up until after some time when the condition started to manifest. In the end, she had to borrow some $20,000 to pay for the hospitalization fees as she chose a surgeon from a private hospital. Luckily for her, she was covered under a H&S plan with rider component and was entitled to a 100% claim.

Another friend also shared a story with me related to his social circle. He has a friend who received a 50% discount coupon for a hair package at some atas (high class) salon in town. Enticed by the big discount given, she went ahead to claim the package. In the end, she had to pay the remaining amount which was still more expensive than the original price of hair packages from other salons!

You might be surprised but this also happened to me some time ago. There was a time when I was obsessed with the amount of cash back rebate that I can get from one of the credit cards that I signed up for. As there was a minimum spending tied to it, I purposely spent more money than I needed so that I could qualify for the rebate. I could have probably saved an additional $100 to $200 per month than trying to get back $30+. I realized how silly I was. Now, my monthly usage of credit cards seldom hit the minimum spending, and it doesn’t really matter that much to me, because overall I was spending less and saving more.

Do you know any other examples of being penny wise but pound foolish? Share your experiences in the comments below. 🙂

Thanks for reading!

Miss Niao xoxo

Author: missniao

Hello! I blog about financial matters and things that average people can do to have a better retirement. I want to inspire people to take control of their money and have a better understanding about it. If you are interested to know more, follow me @ missniao.wordpress.com! :)

2 thoughts on “Are you penny wise but pound foolish?”

  1. Hi Miss Niao,

    Nice blog you got here. Been reading your other posts as well. 🙂

    Examples of penny wise but pound foolish? Trying to save a few bucks by travelling further to purchase a discounted item without realizing that the time and money spent on transport is equivalent to the discount given….

    Liked by 1 person

    1. Hello Unintelligent Nerd! Thanks for the comment. I know right! Sometimes we just need to look at things from a bigger picture. Anyway, I see that you are a blogger too. ^_^ I’ll drop by your blog once in a while to kaypoh2 abit. :p

      Like

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