- Saving money by shopping around for low-priced goods and services can be smart.
- There are some situations where you should look beyond price, though.
- I'm willing to pay more for higher-quality service when it comes to accounting, babysitting, and home repairs.
Opting for the cheapest provider isn't always the best move.
In most areas of my life, I'm a budget-conscious consumer. I prefer to put as much money into savings as possible rather than spending unnecessarily, so I usually look around for the lowest-priced goods and services in most situations.
There are, however, some things I'm happy to pay more for because getting the lowest price isn't necessarily worth compromising on quality. In particular, here are three services where I pay a premium to ensure I'm getting the best.
High-quality child care is one of the most important areas where I'm not willing to compromise on quality just to save a little bit of money. When it comes to taking care of my children, I want to make sure the people I'm hiring are trustworthy, reliable, and creative in coming up with activities that help my kids learn and grow.
While I'm sure I could find a more affordable babysitter, I pay a pretty generous hourly rate to the daughter of one of my husband's best friends. I'm willing to do this because my son loves her and because she does an amazing job and truly cares about my son.
My husband and I are both self-employed and we run our own businesses so we need a trusted accountant to handle our corporate and personal taxes as well as our payroll.
We used to use an accounting service that charged a rock bottom price. Unfortunately, that company failed to file some forms and made other errors that ended up costing us money in fees and penalties. The company refused to take responsibility for this, so we were on the hook for the added expenditures.
This taught me an important lesson that when it comes to hiring professionals to help you manage your money, you want to look for people who are great at their jobs rather than just looking for the cheapest possible service. This is especially true in a field that requires technical expertise, such as accounting or law.
Trying to "save" money by hiring low-priced services can end up costing you a lot more in the end.
3. Home repairs
Finally, for certain types of home repairs, I am willing to pay more to get the work done by people who have a solid reputation for quality. That's the case for any kind of repairs where safety or the integrity of my home could be an issue.
For example, when I’ve had work done on my electrical and plumbing systems, I've always been willing to pay an added premium to get a licensed, trusted service professional that came highly recommended. I don't want to risk a flood or a house fire that could put my family at risk or do major damage to my home just to save a few dollars.
These are just three of many examples where it can make sense to pay more money for higher quality service. Ultimately, when deciding whether to prioritize price or quality, you'll need to think about the risks and downsides of choosing your service provider based on price alone. If the downsides outweigh the benefits of saving money, then being overly concerned about cost may not be the right move.
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