Saving money is always a good thing, right? Of course! Unfortunately, sometimes the tactics we use to save money actually cost us more in the long run. Not all money-saving strategies are created equal. To see what we mean, take a look at these 10 ways of saving money that cost you money.
Making Low-Priced Purchases
That old phrase rings true: You get what you pay for. As a general rule, an inexpensive item is cheap because it’s made cheaply—which also means it’s more likely to break or wear out. When you go for the cheap model versus the high-end version, you’ll save money at the time of purchase. However, you may have to buy a new one sooner than you think, forcing you to spend more for the same item over the long term.
Of course, this isn’t universally true: sometimes, expensive items are so costly because you’re paying for a brand name. Other times, those brands really do make superior products.
Using Too Many Coupons
Coupons are a fantastic way to save money—on things you’d normally buy. If a coupon inspires you to buy something new, it’s not really saving you any money: it’s costing you the (discounted) price of that new item.
Having One Savings Account
Everyone needs a savings account to protect themselves in case of a financial emergency, but you don’t have to store all that money in one place. Take a look at the dividends you can yield in each type of account available to you, and spread your money around to take advantage of various offers, investments, and opportunities. Make your money work for you.
Holding High-Deductible Insurance
Sure, your premium might be a bit lower, but if you have to file a claim, you’ll need to pay a much larger amount before your insurance kicks in. Do the math and determine how many years you’d have to go without a claim to make up for the money you save with a slightly lower premium.
Doing It Yourself
The DIY trend is great! It can be a lot of fun, and sometimes it does allow you to save money. However, with certain projects you can get in over your head: home repair and renovation comes to mind. Depending on your skill set, attempting to fix something yourself could make it worse, and cause a bigger problem that costs more to fix. In other cases, the project may take an enormous amount of time you could have put toward work, family, or other interests.
Buying In Bulk
This might work out for you if there’s a great deal on a non-perishable item you know you’re going to use. In other cases, it results in wasted food or the realization that you don’t use as much of something as you think you do. In other cases, bulk purchases don’t actually cost less: take a look at how much you’re paying per unit and compare it to the smaller-sized item. Stores may intentionally price the bulk items at a higher cost-per-unit because they know people assume the bulk item is a better buy.
Skipping Your Health Checks
Injury and illness are easier to manage—and less expensive—in the early stages. A doctor’s visit that catches something early may help you avoid costly medication, surgery, or hospital time (and the associated missed work).
Skipping Regular Dental Cleanings
A cleaning is much cheaper than a filling, crown, or root canal! With regular professional cleanings, you have a better chance of keeping your teeth in top shape and avoiding more costly (and uncomfortable!) dental work.
Skipping Routine Maintenance
This could apply to your house or car. Just like with your body, early detection can stop a small issue before it turns into a big one. From your home’s water heater to your car’s engine, it’s less expensive to keep things running well, than it is to fix them!
Skipping Financial Check-Ups
Are you saving enough? Is it time to buy a car or take a loan to expand your business? Could you diversify? A financial check-up is an easy way to make sure you’re staying on track to the financial future you have envisioned. Besides: with us, a financial check-up is free! Schedule your free financial check-up with Marine Federal Credit Union. If you have any questions, please contact us.
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