Here's a good article on Yahoo Finance about how being cheap with some purchases can actually cost you much more in the long run. The author is definitely right about her cautions regarding coupons. Don't feel obligated to use coupons for certain products if you don't use that product anyway. What good is an overstock of 50 Polident toothpaste tubes when you are 30 with perfect teeth, even if you did get them for free?! Thanks to Sherri for sending me the link to the article.
Do you have any more suggestions about when not to go cheap?
One thing I suggest is not to go cheap when it means your safety might be at risk. There is a reason that the hotel is only $35 per night when others a few blocks down are $100 per night. Do your homework so you don't lose more than just money. Since we had children, I am much more willing to spend a little extra for peace of mind. That is why we went with the Honda Odyssey instead of less expensive mini vans with a lower safety rating and lower overall recommendations from magazines like Consumer Reports. That baby is paid off and still going strong at 155,000 miles so I am pleased with that purchase. Looking forward to celebrating the 200,000 mark!