When It Makes Sense to Buy Quality Instead of Saving Money

Being frugal doesn't just mean saving money—it means spending your money wisely. That also means some things may be cheap now, but actually cost you more in the long run, while other times it makes sense to spend more now for a better, longer-lasting experience. Let's take a look at when it makes sense to splurge now to save later.

How Frugality Really Works

Frugality, like productivity, isn't just about being thrifty and saving tons of money—it's about spending wisely on the right things so you have the money for the things that are important to you. The goal is that you're able to easily save for your goals—or for emergencies—because you've made smart buying decisions now. That means you have to consider the long run.

Doing this takes more thought than you might think. It's easy to get caught up in just buying the cheapest serviceable version of whatever you need, as long as you keep "saving money" in the front of your mind. Unfortunately, buying cheap can lead to spending more down the line—whether it's in things like maintenance and upkeep, or replacement costs when you have to buy the same cheap thing over and over again. If you really want to save money and invest in quality—there are some times when it makes sense to spend more money so you don't run into those costs.

When It Makes Sense to Spend More Today to Save Tomorrow

There are two big factors you have to consider when you're making a buying a decision—whether you're shopping for a pair of jeans, or you're buying a home: Price, and Quality. It's easy to cut corners where you think it's an unimportant purchase—like clothes or cleaning supplies—and go just for price, or blow out your budget on quality because you think you should or it's a rare buy—like a car or a house.

As Peter Anderson explains in this piece, most of us fall between the two:

I tend to go for the cheap things when it comes to things I don’t care about, or when it comes to things that are of comparative quality regardless of price. For things that vary greatly in quality, I tend to come down on buying the quality item instead. After all, just because something is cheap, doesn’t necessarily mean that it’s frugal. If the cheaper item wears out before it’s time you’re going to be spending more money to replace it.

As an example, you may think that consumables—like cleaning supplies or toiletries—are safe to go cheap on, but if you wind up buying more of a cleaning product to get the same effect as one that's a bit more expensive (or one you could make yourself in larger quantities if you spent a little more), you're actually wasting money. Here are some of the most notable examples of this phenomenon:

• Cars, Bikes, and Other Modes of Transportation: When you're ready to buy a car, a bike, or invest in any other method of getting around, buying cheap for the sake of saving money is always a bad idea. Total cost of ownership—including maintenance, repairs, fuel, storage or parking, and other costs also play into your budget. It doesn't take much imagination to see someone spending little on an affordable vehicle only to find out it needs costly repairs, after-market upgrades, or is a notoriously expensive vehicle to maintain. Of course, high-end and luxury doesn't equal "better," but making sure you consider additional costs and put your money to the features important to you (fuel economy for long-distance drivers, safety features, etc.) associated is important.

• Homes: Buying a house isn't the time to skimp on the little things—especially if those little things make a big difference in how much you'd spend to maintain or repair your home in the future, or again, the total cost of ownership of your home. Similarly, it's important to remember that some things—like square footage, location, and neighborhood, aren't things you can easily change later on. Skimping on one of them now may mean you're dissatisfied later. The same rules apply to rentals. There's no reason to blow your budget, but if buy too small today and your family grows, you'll be back where you are now—shopping for a new home—sooner than you might like (and you’ll be more subject to the whims of the market). Similarly, buying an affordable home without doing your homework and finding out why it's affordable may lead to surprise costs in the future. Get a home inspection, do your research, and learn as much as you can before you decide on a property or an apartment "because it's a steal at this price."

• Bags, Wallets, Purses, Luggage, and Other Carry-Alls: Wallets, bags, and other everyday carry items are things you trust and depend on every day. Sure, to some extent they're commodities—you can always find another bag, or another wallet, but buying a quality one doesn't just mean that you'll have a dependable, reliable accessory. It also means you'll spend less in the long run replacing them after they've worn out. When we looked at the five best wallets and the five best laptop bags, many people noted that cheap may be appealing, but spending more to get something of quality make and craftsmanship means you'll have a wallet or bag that'll last for years. In short, while it makes economical sense to buy a $200 bag that'll last 15 years over a $75 bag that'll last two, it's even better to have something that's well made, durable, and can handle the demands of everyday use without falling apart. There's a big difference between well-made luggage and cheap luggage, the same way there's a big difference between a plastic wallet from the department store and something hand-crafted to last a lifetime.

• Appliances and Energy-Efficient Products: Spending a bit more on kitchen and household appliances means you get an energy efficient, reliable product that can save you money in the long run. Basically, you have a little math to do before deciding how much to spend. Factor in your budget, along with how long you plan to own the appliance, and then look at its cost of operation. If you plan to own the item long enough that buying a more expensive—but more energy efficient—model will save you money in the long run, it's a sensible purchase. Even if you plan to sell the item, it still makes sense, since you'll be able to get more of your money back. You should also factor in warranties and maintenance costs. If your appliance is covered for as long as you need to own it to make your investment back, you're in good shape. Things like energy efficient light bulbs, rechargeable batteries, power strips, and other products are easier to consider though—you'll quickly make their money back on the energy savings you get from the devices connected to them, or in replacement costs. Buying one LED light bulb that lasts for 5-10 years is clearly more cost efficient than buying a CFL that's rated for 2-5, even if you don't consider the savings on your electric bill.

• Furniture: We've discussed how cheap furniture usually isn't worth buying, mostly because it'll either fall apart or cost you more money to repair or shore up, but the bottom line is that you should buy based on how long you plan to live in a specific place, and how frequently you use a piece. Buying a cheap couch is going to wind up making you miserable if you spend a few hours on it every night, and skimping on a bed and mattress will make you miserable no matter what. However, if you move regularly then less-durable, easily replaced furniture can be better than large, long-lasting pieces. Overall though, it makes more sense to buy long-lasting, timeless pieces that are sturdy enough to move with you than it is to re-buy every time you move, or every time your desk falls apart.

This isn't an exhaustive list by any means. Depending on your lifestyle, this list could easily expand. For example, if you're big on building your own computers, you may consider buying high-end components and future proofing your rig (as much as possible) so you don't need to upgrade or build a new computer quite so often. Alternatively, if you'd rather be on the forefront of technology and you have the budget to accommodate it, buying more frequently will get you newer, more energy efficient, and actively supported products instead of clinging to older ones for the long haul. You have to find that sweet spot between cost and quality (or longevity)