As a CFP®, I work with clients everyday guiding them through the process of finding the balance between spending and saving.
The British saying, “Penny wise, Pound foolish”, means, watching your pennies and ignoring your dollars.
While it is important to respect your budget, there are things in life which you need to maintain for the long term. Such as your health, home and car, all of which can be protected by insurance. However, choosing the correct amount for your deductible and premium payment, can result in a “penny wise, pound foolish” moment. Choose wisely, if you decide to have a low premium and a high deductible, either have the monies in savings or have a plan on how you’re going to meet the high deductible. Keep in mind, if things have gone sideways you may have to meet your deductible, and other expenses as well.
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