4 ‘Saving’ Strategies That Can Cost You Money
Creative ways of saving money are often a great thing. Recycling, researching, shaking up your routines; all of these things can be of huge benefit to your finances. But sometimes ostensibly smart financial decisions can be deceiving. Here are four ways you can lose money by ‘saving’ money.
At The Pump
Petrol prices can certainly be enough to put a dent in someone’s day, and people tend to get quite obsessed with the servo that always has cheap prices, the website with hot tips, the radio segment on where cheap petrol is. The thing is, petrol prices generally only vary by a couple of cents per litre. That’s a couple of dollars every time you fill up. So if you’re driving out of your way to find cheaper petrol, your savings measure is costing you. The alternative: Commit to only driving to work three days a week. Car pool or catch public transport the rest. It’ll save you far more money than watching the the cents dip up and down.
Grocery Hawk
Once the catalogues come in, you spend a good hour comparing where best to get everything. You’ll get your fruit from Woolworths, there’s a good deal on beef at Coles this week and Aldi has the cheapest chocolate. That might all be true, but the time you’ve invested in, firstly, working that out and, secondly, actioning it is costing you money. If you can do it under half an hour, it’s a borderline call. Anything over that isn’t financially worthwhile. The alternative: Write a shopping list, and stick to it. Visit three stores and you’re just as likely to buy something you don’t need as save money. Bulk buying fruit with a group of friends through your local cooperative or buying non-food items from warehouses are a much more solid savings strategy.
Online Shopping
At the moment, with the Australian dollar the way it is, anyone buying electronics or clothes could make a significant saving by buying them overseas. There are a couple of caveats to attend that sentence. One, you must have a need for it. Two, you must be able to ensure there is free shipping, because your ‘savings’ will disappear right there. If there’s a minimum amount required for free shipping and you buy extra to get it, then you’ve just fallen for the oldest trick in the retailer book. Online shopping is also not saving money is you are buying without a need. Yes, you’ll only be paying $5o for three t-shirts, but you are still spending $50. The alternative: Shop online if there’s a great deal, free shipping or something you need that is cheaper overseas. For everything else, buy local. It’s supporting local business, controlling carbon emissions and often better for the old hip pocket.
Sales And Promotions
Put it this way- if the sale wasn’t going to benefit the business, it wouldn’t be happening. Sales and promotions exist because they bolster business. Sometimes, they can be positive for the consumer as well but it pays to be savvy. ‘Saving’ money by buying two books, in order to get a third for free, when all you wanted was one book is a short-term saving mindset. The alternative: If there is a genuinely good deal, go for it. At all other times, remember to ask yourself if you need the item before you buy it. Shop off-season, and you’ll be likely to snag many more genuine bargains.
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