# Penny-Wise, Pound-Foolish

If you’ve been following Unconbentional for a while now, you know I love introducing minor changes to your spending so you have money to invest. I’ve talked about saving amounts as small as \$2/day cycling or 26¢/coffee just so you can keep adding to your bottom line. What I haven’t told you up ‘til now is that most of this is useless if you’re still an idiot about large “one-time” expenditures. Obviously, that’s common sense for a lot of you, but maybe it’s not because if I’m reading this right, the average Canadian is still blowing \$40,100 on their new vehicles! As if that wasn’t enough, the current trend is fuel-guzzling SUVs over a regular “fuel-efficient” car! Don’t even get me started on rent. Some people I currently know spend as much as \$1,500/month on living expenses when a little thinking-outside-the-box could turn that into \$300! Here’s some quick math, if only to make you reconsider your next major purchase. I firmly believe that ANY purchase over \$100 should be: a) something that SAVES you money, b) something that EARNS you money, or c) an EXTREMELY special occasion. (“Friday night” doesn’t count.) I know you know this already, but it’s hard to argue with numbers. Here we go.

A \$40,100 vehicle represents the money you’d save on gas alone from about 55 years of cycling 15 KM a day instead of driving, or 301,125 KM. The circumference of Earth at the equator is 40,030 KM, so that \$40,100 SUV you just bought is equivalent to what you’d save by circumnavigating the globe 7.5 times by bike. If we’re talking about saving 26¢/coffee by buying one size down every time, we’re talking about 154,230 cups of coffee you’d need to do that with, or 422.5 years of one cup a day. By a single dumb decision – buying a new vehicle LIKE SO MANY CANADIANS ARE DOING – you’ve potentially nuked 154,230 tiny good decisions, OR just shat all over the savings from multiple lifetimes of cycling. Remember, shiny things are stupid. Beware the one-time expenditure.

This is only one example, but my point is you can’t pat yourself on the back for tiny good decisions anymore. You need to do the math on big purchases, and really think about how long it took you to get there based on your frugal decisions. The other day, I was hosting a dinner party and spent \$101.46 on two lobsters. I’d have to choose a Subway 6” sandwich over a much tastier sushi lunch 20 times to make up for that, and it kinda hurt to fork over that money. Sure, I’d mentally congratulated myself every time I bought a cheap sandwich, but I destroyed the benefit of ordering 20 of those in one night! You just don’t win as long as you keep making major purchases. If you’re frugal six days out of the week and go hog wild every Friday, YOU’RE NOT ACTUALLY FRUGAL! That puts you in the same boat as everybody else!

Don’t be penny-wise, pound-foolish. Saving nickels and dimes really don’t add up to much. Don’t let one or two big-ticket items set you back years of penny pinching. If you’re not careful, it takes only a day or some asshole car salesman to ruin your financial future. Watch out.