Saving money is a great financial goal, but sometimes the ‘common sense’ tips we hear can actually have the opposite effect, and we end up spending more. Following popular advice, it is easy to think you’re cutting costs, but some methods are just not as effective as they seem. In fact, some can even drain your wallet if you’re not careful.
Let’s take a look at 10 popular money saving tips that may actually end up costing you more in the long run.
Buying in Bulk
The idea of bulk buying is a no brainer, more items for less money, right? In reality, if you’re buying perishable goods, you might end up throwing out expired food. Bulk purchases, such as produce or dairy, is likely to be wasted. Instead, buy in bulk only for non-perishables and things you know you will use before they spoil.
Using Coupons for Items You Don’t Need
Coupons are great, but they can be a trap to purchase things we don’t need. If you’re only using a coupon for something because you’re getting a discount, you’re probably not saving money in the long run. Instead, you stick with coupons for items you already need or use on a regular basis.
Ignoring Regular Car Maintenance
You think you’re saving money by putting off regular oil changes or skipping a tire rotation. While it could save money in the short term, It could end up costing in the long term. Keeping your car in running order will prevent breakdowns and costly repairs. Skipping these little costs on tiny things can snowball into big costs, such as replacing your engine or new brakes.
Buying Cheap Products That Require Frequent Replacing
At times, taking the cheapest path really isn’t. That bargain pair of shoes may seem like a good deal, until they fall apart in a few months, and you have to buy another pair. Quality items may cost more initially but you do not have to buy a new item all the time.
Doing DIY Projects Without Proper Knowledge
DIY projects can certainly save money, but if things aren’t done right it can end up costing more. For example, attempting to fix plumbing or lighting without expert experience can wind up costing a lot of cash on the off chance that something turns out badly. According to Zillow, a quick survey showed that 39 percent of Americans regret a DIY attempt because it cost more than they expected. When a project is complex, know when you should bring in a pro.
Buying Store Brands Blindly
Not all store brands are a great value. Store brands sometimes sacrifice quality, so you use more of it or it doesn’t last as long as a name brand. When it comes to the things you use daily — like paper towels or cleaning supplies — test store brands first before jumping in completely. If the quality isn’t there, the savings aren’t worth it.
Choosing to Skip Health Insurance or Taking the Low Premium Route
If you’re healthy, health insurance can be a big expense. But skipping it or taking the basic most premium plan without regards to coverage will be a risky decision. If you need a lot of medical care all of a sudden, you’ll pay a lot out of pocket. Good health coverage is an investment that can guard you against such unexpected expenses that could completely devour your savings.
Not Using Credit Cards at All
It’s true that credit cards can lead to debt if not managed properly but completely avoiding them means you’re leaving potentially valuable rewards, purchase protection, and credit building at the door. In fact, using a credit card responsibly and paying it off each month is a smart financial move, if you can use it to rack up cash-back or travel rewards. Credit cards can work in your favor as long as you’re disciplined.
All-In-One Bundles Without Considering Individual Costs
You may have seen ads for bundle deals from cable and internet providers, and even some streaming services. However, do you really use all of those services? Too often these bundles will come with channels, internet speeds, or even other features that you don’t need. Check to see if the cost of what you actually use is cheaper than the price of a bundle; you may be getting a discount or just paying for fluff.
Eating Out to Skip Groceries and Cooking
Eating out frequently so you don’t have to shop for groceries and cook yourself can cause some serious damage to your budget. Restaurant mark ups on food are huge, so while it might save you a little bit of time, it’s not really worth it. Even if it’s a simple meal, cooking at home will almost always be cheaper than dining out. Moreover, meal prepping can also save you time during the week without draining your wallet.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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