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5 things that are better because they are expensive

Posted at | Updated as of 07/14/14 5:12 PM

MANILA, Philippines - While being frugal is a good habit, there are some things that are worth spending a lot of money on.

ANC On The Money's resident financial adviser Salve Duplito said she uses the "less is more" principle, but quality is more important than quantity.

Quality usually comes with a hefty price tag, but when you find the sweet spot in the middle then you are spending your money well, she said.

Duplito shared her consumer's manifesto of things that are better because they are expensive.

1. Education

Whether it's general education or continuing education for professional enhancement, always do extensive research on the quality of teaching and put that consideration above the cost.

Tuition inflation is currently at 10 percent per annum, outsripping many other costs of living. Most couples who are starting a family now will have to save roughly P1 million per child to have a good quality education in the future.

Start planning early. The faster you begin, the less you have to set aside.

2. Hiring a professional to help you with your financial plan, books, legal and other similar services.

Remember the saying, if you pay peanuts, you get monkeys. Those who work hard and know what they are doing are aware of the price tag attached to their time.

3. Home and car maintenance

Choosing to scrimp on home and car maintenance makes you spend so much more over time.

A home may be one of your most expensive expenses. Treat it well.

4. Health care

Heath care has become so much more expensive in recent years. But don't scrimp on health care. Build your emergency and health care fund. Make this a priority.

5. Cookware

Cheap cookware is a health hazard that will cause even more expenses in the future. Healthy cookware may be much more expensive but the trade off is your health.

"The 'why you spend' should always be a deeper consideration than 'how much to spend.' Money is simply a tool for us to live our own values. It is not and should never be the end goal," Duplito said.