This web site has an objective of identifying ways to save money and helping consumers to make the hard earned dollars stretch further. But sometimes we lose sight of the fact that we are actually spending money to save money. We develop money saving habits that cost you more than you save. It is important to really look at how much you will save before you spend money on something or take an action. For example, driving halfway across town to save a few dollars with a coupon you have just does not make sense.
One of our favorites is buying something just because it is on sale when we really do not need the item. It is clearly nice to have, but we would save a lot more if we just did not make the purchase in the first place.
Opening a store credit card to save 10 or 20% sounds great at the time, particularly if it is a large expense. If you cannot pay for the item when the credit card comes in and pay 19% or even up to 29% on some cards, you are going to lose your savings and then some very soon.
Buying extended warranties is another item we think you should avoid. Instead use a credit card that doubles the warranty on your items purchased with it. You will save a great deal this way.
Buy in bulk when you can use all of the merchandise or groceries before they spoil, other wise you are just wasting money and losing any savings you might have received initially.
Savings accounts are a great way to set aside money for emergencies, however you are losing money if you’re not collecting interest on your savings. Look for other opportunities that pay more and still protect your money.
Buying cheap, often saves money initially. Cheap items wear out more quickly and replacing them just adds to your cost.
Free shipping is great and convenient. Compare final price on everything before you make the purchase decision. Shipping is always built into the price one way or another.
If you have other ideas about Money Saving Habits that Cost You, please leave your comments and we will add them to this post.