From time immemorial, the general belief has been in order to save money, you need to be frugal. In fact, many a people have gone as far as to state that frugality is human nature. While I might agree and somewhat disagree to the arguments put forth, the reality of things is that saving money is essential. You don’t want to wake up one day and find yourself in a quandary simply because you don’t have any savings to take care of an emergency. With that said, a lot of people have over the years been making mistakes when it comes to saving money. Such individuals operate under the false sense that they are actually saving money while in reality what they are doing is costing them a lot more. A look at the money saving myths will actually give you a clear picture of whether you are actually saving money or simply making a fool of yourself.
Philosophy of purchasing the cheaper item
I think it comes across as natural. When we are confronted with the decision to purchase an asset, we always instinctively buy the cheaper item with the hope of saving some bucks. In any case, who would want to dig deeper in their pockets when there is a similar item at a cheaper cost? However, while this is laudable, let’s not be blind to the age old saying that cheap is expensive. That item you bought at a cheaper price could end up costing you more. You could end spending more on unnecessary repairs or it could be that the item is not durable enough. It is important you look at this aspect on a case to case basis or you might simply find your idea of saving money a myth of sorts.
Getting on the free shipping bandwagon
If you are a fervent online shopper, you will agree with me that shipping costs can go up the roof. Shipping a simple inexpensive item could attract a shipping cost of up to 10 dollars. In light of this, a good number of online retailers have devised an ingenious way to get their customers to spend more. Actually they get you to spend more through the promise of free shipping. The downside is that you actually end up spending more as opposed to saving.
The use of credit cards
The allure of reward points, cash back and even free travel has led many people to increasingly use their credit cards while shopping. While they might be under the false sense that they are saving money, the reality of the matter is that the desire to get more reward points actually push people to spend more than they actually save. This is an ingenious way that credit card companies have effectively utilized to make huge profits while making the general populace believe that they are actually saving money.
Buying in bulk actually serves to reduce the cost per unit but can also be dangerous especially if you end up buying items you don’t necessarily need simply to get discount. Imagine keeping items you have no use over in your home for a couple of months. Isn’t that wastage of funds as opposed to saving? Impulse buying has never and will never be the perfect way to save money. Make it a rule to buy what you need within your budget.
The notion that the use of cash is the best option
Well, if you have a proper budget, then using cash can be a great way to avoid impulse spending. However, on the other hand, if you just shop with cash haphazardly, you have no way of tracking your expenditure and this could actually lead you to spend more money than you had anticipated.
To sum it up, with the above money saving myths, it’s important that you escape this rut and stop living under the false sense that you are saving money while in real sense you are simply spending more!