Penny wise and pound foolish examples are everywhere. The term comes from an old English proverb that is sometimes used in the United States & Canada as well. Penny and pound refer to English money. If you’re penny wise and pound foolish then you make decisions that appear to be financially beneficial, but actually cost you more money in the long run.
If they pay a penie or two pence more for the reddinesse of them .. let them looke to that, a foole and his money is soone parted. – ye olde English proverb
If you’re on a personal finance journey right now then you most likely know all about the ‘big stuff’ – spending less than you earn, investing, avoiding debt, not paying for coffee at Starbucks. 🙂
But after you’ve picked all the “low hanging fruit” from your budget then your next steps are to look for other ways to be efficient in your life. This is where penny wise & pound foolish can come into play, because you might actually think you’re making the right move, when in fact you’re putting roadblocks on your own path. That’s no good.