When Cheap Costs Too Much

Why the lowest price is often the most expensive- for your team, your family, or your future self.

A common habit I see among new managers, and frankly, anyone trying to manage limited resources, is to always go for the cheapest option.

And sometimes, that’s the only option available.
Our circumstances don’t allow for anything but.

However, when we aren’t in full survival mode, it’s helpful to be aware that choosing the cheapest route can quietly cost us far more in the long run, especially when we forget that money, time, and energy are tightly connected.

We focus on the short term dollars saved... and ignore the invisible taxes that end up costing us much more.

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The Damage of The Cheap Manager

I once worked with a manager who decided to save money on a business trip by booking a cheaper hotel for the team.

No breakfast included.
Far from the client’s office.
The kind of place you pick when the spreadsheet is your primary guide.

At first, it seemed like a win. Budget met. Boxes checked.

But then those invisible taxes start accruing.

Every morning, team members had to figure out where to eat. Some wandered the neighborhood looking for options. Most paid out-of-pocket. Others skipped breakfast.

Then came the walk to the office, longer than expected. Not long enough to complain about, but long enough to drain a little energy before the day even began.

By the time meetings started, people were a little more tired, a little less focused, and a little less motivated.

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When the Spreadsheet Isn’t Your Only Guide

Next trip, the company chose a slightly more expensive hotel, one with breakfast, and closer to the meeting site.

What happened?

People rode the elevator down to breakfast.
They sat together, chatted casually, built rapport.
Some even discussed ideas for the day’s work.

There was no rush to find food. No decision fatigue.
Just shared space, connection, and ease.

They finished breakfast with time to spare. Some went back to their rooms to rest. Others prepped for meetings.

When the meetings started, people were calmer. Morale was noticeably higher. So was performance.

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It Happens at Home Too

This isn’t just about work.

I’ve seen the same pattern in families. A parent chooses the cheapest family restaurant or a budget weekend trip.

But the food isn’t good, the service is slow, the kids get cranky.
Everyone’s frustrated by the end.
And you still stop for a second meal or snack on the way home, because no one’s satisfied.

What was meant to be a “cheap night out” ends up costing more, not just in money, but in energy, mood, and joy.

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The Long-Term Cost of Always Going Cheap

It’s easy to see the short-term effects of a frugal decision. What’s harder to measure is the long-term damage.

If your team gets used to low-cost, low-comfort choices, the bar drops.
The effects of the decision become something to endure, not something to look forward to.
Engagement fades. Retention falls.
People stop giving their best.

At home, always choosing the cheapest option can lead to more stress, more complaints, and fewer memories that feel joyful.
Kids whine. Parents get frustrated.
What should’ve been bonding time becomes tension time.

You can see how the money/time/energy balance is inherent in all of our decisions, be it hiring, vacations, devices, events, marketing, childcare, groceries, etc. (we’ve also previously looked at how that relates to burnout).

You’re not just saving a few bucks. You’re draining your energy reserves.
And over time, that can become incredibly financially expensive.

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Look at Every Decision Through Three Lenses

Whether you’re a manager, educator, parent, or all three, here’s a better framework:

Every decision costs three currencies:

• Money

• Time

• Energy

The best decisions balance all three, and also add a time axis (short/mid/long term effects).

Sometimes, spending a little more money helps you save a lot more time and energy. And ironically, that often ends up saving more money in the long run.

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One Last Tip

Before you choose the cheapest option, ask yourself:

• Will this choice cost me or others extra energy to compensate?

• Will it take up more money/time later to fix or recover from?

• What are the long-term implications to my team, my kids, or myself?

The best way to save is to spend wisely, not sparingly.

And to be clear, this isn’t about being extravagant.
It’s about adding a layer of thought, even when the wallet feels tight.

Because your energy, your time, and your relationships?
They’re worth more than a line item on a spreadsheet.

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P.S. You might be wondering what any of this has to do with adult development, which is what these newsletters are usually about.

Let me tell you- as we develop as adults, we become better at embracing complexity and naturally using multiple axes (like energy/money/time) to make decisions.

One way to develop as adults is to do little practices such as these that embrace a higher level of complexity.

And as we develop as adults, we become better able to transform the craziness of the world into more manageable pieces that are imbued with calm, curiosity and compassion.

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