There are lots of money-saving tips out there. The internet is full of articles and advice from people willing to share their knowledge. However, sometimes this information is worth taking with a pinch of salt.
Instead of saving you cash, these tips can have the opposite effect. Here are five such examples:
When saving money, it makes sense to always pick the cheapest option. However, in reality, choosing quality over cost could save you money in the long run. For example, a cheap pair of shoes could be worn out in a matter of months. Then, you need to spend more money to replace them.
One of the best ways to explain this has been summed up in Terry Pratchett’s Men at Arms book. In the words of one of the characters, Vimes:
“But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet.”
In short, if you pay for quality, you might save more money in the long run.
When a business starts a sale, the prices of certain goods can be cut by significant amounts. As a result, you can save money by picking up the product you want at a fraction of a cost. However, savvy merchants realise customers will generally buy more than they intended during a sale.
As a result, unless if you have amazing self-control, it might be worth buying the specific product you need when you can instead of trawling through the discounted items.
Another trick some merchants use is to dress up packaging as ‘value’. Although the product sometimes lives up to this claim, it’s worth inspecting the ‘price per unit’ instead of the item’s cost.
Often printed below the price on supermarket shelves, the price per unit is an effective way to make sure you’re getting a good deal. You might find, ultimately, the ‘value’ pack is no better for your wallet than a premium brand.
Store cards are often sold by businesses with a range of attractive offers. For example, no-interest introductory offers, store credit, or special discounts. If managed properly, a store card can be a good way to spread the cost of items or get a great deal.
However, miss the interest-free period or a few payments and a store card can become very expensive indeed. This is actually one of the debts we hear regularly about. To find out more, take a look at our store card debt page.
In some situations, buying food in bulk is a brilliant way to cut the cost of your grocery order. However, it’s important bulk buying does not become excessive. For example, if you can get five bananas instead of one, that’s great. Yet, if you don’t eat two before they go off, that’s food and money wasted.
Although you can save money by buying food in bulk, it’s important that it all eventually gets eaten. Otherwise, your shopping order just becomes needlessly expensive.
If you’re struggling to repay what you owe, a debt solution could help you get on top of your finances. For example, with an IVA, you could freeze interest rates and charges, stop creditor contact and – ultimately – write off large amounts of what you owe.
To find out if you qualify, click the button below: