In today’s economy, consumers look to save money wherever they can. However, there may be a few misconceptions about certain ways to save cash, that can really be a waste. With the holiday season approaching, some consumers may try to take advantage of the following deals to save on their spending, but they should show caution.
Beware Of Buy One, Get One Deals
Many people can’t resist a buy one, get one free or half off deal, but these can actually lure you in to commit some major unnecessary spending. These types of deal often seem too good to be true, but you should ask yourself a few questions beforehand.
Ask yourself if you would buy two of these items, or is your deal radar on the fritz? In addition, even if you get a second item half off, the expense may not fit with your budget. According to Reader’s Digest, if you purchase a pair of sneakers for $60 and get a second pair for $30, this could add up to more than $100 after taxes. Think if you really need two pairs of shoes.
Meanwhile, you can also ask a store clerk how long the deal will go on for. If it’s for a few more days, go home and sleep on the decision. You could wake up the next morning thankful you didn’t blow all your money on a seemingly good bargain.
Signing Up For A Store Credit Card
In a checkout aisle, you’ve probably encountered an offer to sign up for a store-brand credit card. This is often paired with a discount for your immediate purchase.
Some people think they can sign up to capitalize on the discount and close the account immediately after. However, this will remain on your credit report for quite some time and may actually have an adverse effect on your credit score.
Don’t Always Pick The Cheapest Product Or Service
If you are on a budget, selecting the cheapest option when making an expense may seem like the best choice, but it could cost you in the long run.
Specifically, if you pinch pennies and buy cheap product made with inferior materials, it may only be a matter of time before you have to buy another once it wears out or breaks. While this individual purchase is cheaper, over time, these small expenses can add up to much more than splurging for a high-quality product.
Repairs and updates to your home and automobile is one situation where this is especially true. These are two of the largest investments you may ever make, so ensure only the most qualified professionals using top-quality parts and materials are being used.
Only Saving Money For One Long-Term Goal
Having emergency funds can help you deal with unexpected bills, but if this is where all your extra money goes every month, you may want to reassess your budget.
For example, should some of this money go toward retirement, rather than an emergency cash fund? Some people might think they can transfer money from their emergency fund to their retirement later on down the road. While this is an option, it won’t give the cash the time it need to grow and mature by collecting interest.
Although you don’t know when this emergency cash will come in handy, it’s guaranteed you will need a retirement fund as your grow older.