Real Estate Agent · San Antonio, TX · Member since 2017 · 523 posts · 362 votes
Hey guys I have been listening to a lot of podcasts and many of them talk about frugality and saving money or being cheap. I was always raised to believe that being cheap is expensive, sure you may save money right now but over time you will spend just as much if not more if you had just purchased the more expensive quality item. My question is where should I be frugal or cheap? What parts or repairs on a house should I look to save lots of money on? What parts should I focus on quality, and not focus on the price? Where in my personal life should I be frugal and where should I care about quality? What routines, practices or places do ya'll shop to save money or buy quality items? Thanks for reading and I appreciate any and all comments!
Real Estate Investor · Des Moines, IA · Member since 2016 · 922 posts · 533 votes
8y
One of the sayings that really annoys me 'to the max' is the following:
You get what you pay for. I couldn't disagree more.
I could list off the top 10 deals that I've obtained that did not fit this, in a good way.
I could list off the often inherent conflict of interest that is usually present from people that say this - ie: the window supplier/installer that is selling the $700 windows with little added value, etc. It's usually the folks that don't understand the difference between VALUE and PRICE that say this, or have something to gain by making people believe it.
All this said, we have at times had a lot of time sucked up because of the purchase of say a used dishwasher from Menards, as an example.
I think a better way of thinking about decisions is constraints. Constraints are different for different people at different times. At times, (and I'm speaking from experience) we could afford nothing other than getting the $50 used dishwasher and doing our darnedest to make sure that it worked, that we were protected if it didn't, etc. That's looking for value. There are other times when time is more of a precious commodity and one can't afford the time that may come with testing and understanding the problem of the used dishwasher, and getting a replacement heating element for it, and swapping it in.
The takeaway here though is that unfortunately there's not a simple answer. It depends on who you are and where you are. We are transitioning to where money is less of a constraint (although it always is to some extent) - and where time is more valuable. It seems that's a common transition and trade-off. But, it's not the only one. It's just one and it just speaks to a couple constraints that should guide decisions (money and time). Other common constraints that should also guide decisions include:
capabilities
gumption/can-do (ie this is essentially your 'charge' or energy to execute and grind through tough times) - I've found understanding this about yourself is essential as mis-estimating here can be brutal, hard on outside relationships, among other things
Real Estate Agent · San Antonio, TX · Member since 2017 · 523 posts · 362 votes
8y
@JD Martin Thanks for the comment! I agree with you there are many things these days that are similar, the brand and design is what makes it cost 2-10 times more than the competition!
@Steve S. Thanks for the comment! How did you find these places? Did you just google these items and stores or did you find them by driving around or word of mouth?
Real Estate Agent · San Antonio, TX · Member since 2017 · 523 posts · 362 votes
8y
@Jim Goebel Thank you so much for the comments and for sharing your experience. I was pretty on the fence about granite but after your comments I completely agree and realize the value in the product compared to other cheaper options. You are the second person to bring up "remnants" what are those? Like discount stores for flooring and stuff?
Investor · River City, Manitoba · Member since 2017 · 162 posts · 193 votes
8y
@Michael Guzik it's a little bit of both. I've been doing reno work for as long as I could hold a hammer it seems. The auctions I just keep an eye on the paper as well as a few online sites.
The remnant stores for flooring you can easily find by asking around. Also look for stores that are in "industrial" areas. Not high traffic strip mall areas but deep seeded. They usually have a lot lower overhead and supply to commercial installers but allow walk ins. Also look for "cash & carry" type stores.
It all comes from years of networking, asking questions and just doing some comparative shopping.
Take a week and look at all the suppliers in your area for just one type of item, and start working from there. In under a year you will have a very good idea of where to go for what items. Be friendly to the people that work the desk at many of the places if they don't have something they can frequently tell you where you can find something similar as well.
Rental Property Investor · Manitowoc, WI · Member since 2016 · 178 posts · 186 votes
8y
@Michael Guzik I would tell that person if they spent as much time worrying about their own finances as they do mine, they'd be much better off, mentally and financially, than they are now.