Reducing your living expenses is generally a good thing, as it can help you live within your means and save money as well.
With that said, there are certain things that you should never, ever cut corners on.
Doing so can backfire and cost you more money down the line.
Here are five necessities that you should never cut corners on.
Auto insurance
Many people mistakenly believe that they can save money on premiums by buying only the minimum amount of auto insurance coverage required by the state.
It is, however, an extremely bad idea, as you could be held personally liable for the damages you cause in the event of an accident.
Let us assume that $30,000 is the minimum amount of auto insurance required in your state. If you cause an accident and the victim is awarded a compensation of $50,000, you have to pay the difference (which would be $20,000 in this scenario) out of your own pocket.
So, make sure you buy as much liability coverage as you can afford to, above and beyond the state mandated amount.
In addition to that, you should also buy as much uninsured motorist coverage as you can afford to, so that you can receive compensation for your injuries and other losses if you are injured by an uninsured driver.
Health insurance
Data shows that over 60% of all bankruptcies filed in the country are over medical expenses.
Given the fact that healthcare expenses in the country continue to climb higher by the day, not having sufficient health insurance can prove to be an extremely costly mistake down the line.
Stemming from this, make sure you and your family members have sufficient health insurance coverage.
Home repairs
One of your primary duties as a homeowner is to check your home for leaks, cracks, blocks, rot, mold, or anything else that could lead to expensive repairs down the line.
If you fail to do so, or if you choose temporary DIY remedies rather than fixing the root cause of the problem, you might have to spend a fortune on these problems eventually.
More importantly, lack of preventive maintenance, particularly related to water leaks and mold, can affect your health and put your life as well as the lives of your family members at risk.
Car repairs
When you are strapped for cash, you might not want to pay attention to those pesky dashboard warnings or the strange sounds coming out of your vehicle.
The truth is you really should pay attention to these things and get them fixed before they damage your vehicle.
Cancel all the unnecessary subscriptions, cut cable, and stop dining out for a month or two if you have to, but make sure your vehicle is in proper working condition.
Healthy food
Healthy, nutritious food is one of your most basic needs and you should be willing to spend whatever it costs.
Remember, healthy food does not necessarily mean organic foods, which can be expensive.
Instead, you can buy quality meat and fresh produce and cook healthy, filling meals, rather than relying cheap processed foods for nutrition.
