When planning your budget, there are some solutions that appear cheap but end up costing you much more in the long run. Let’s have a look at some money-saving moves that end up costing the consumer much more:
Going for cheap appliances and house furniture
Most people try to spend less by going for cheap home appliances and furniture. While this might appear like a smart move especially when you have a limited budget, the cost might be a lot higher on the long run. Low-quality refrigerators and mattresses are more likely to get damaged faster than high-quality ones. This is where cheaply becomes expensive, and you end up paying more by buying another new product in a short period. Always check to see if the appliance or furniture gives you value for money.
Buying because a product is on a super sale
Well, I understand you want to take advantage and get that nice product a good price than what it usually goes for in the stores. The move appears wise, and you think you are saving but come to think again; do you really need the item? You might never use the item you just bought. Don’t go buying something you don’t need just because it is on a super sale. The move might cost you if you don’t have the right uses for it.
Cutting your insurance plans to save
We always think in the short run trying to save the little we have on our hands. Some people choose to insure themselves under the age of 30 so that they can pay lower premiums and get to spend their money early enough. Well, this might appear a smart move but not so smart when something catastrophic happens.
Forget the banks for certain transfers
We are all used to go to the bank for any kind of financial transaction but this doesn’t mean that is also the best choice. Sure is a great solution if you need to send money to another account belonging to the same bank but things start going bad when you need to send money abroad. The fees are high and the currency exchange rates are awful. That’s why you should start to look around and find a money transfer comparison website and see what other cheaper alternatives you have at your disposal.
Not maintaining your car properly
Most people will not take their cars for regular maintenance as long as the car works just fine. Well, you might be saving the monthly car maintenance fee, but the move would turn out to be expensive when a small issue that could have been fixed breaks or gets damaged. The mechanic bills can also go high costing you more in the long run. Your car value will also reduce which is a loss of more money that you are trying to save.
Living the social deals
If you are the person who goes for the cheap deals or services on offer on social sites, then you are making a wrong move on your finances. Did you need the goods or services in the first place? Go for those deals if you were planning for something of the sort. Otherwise, you will be spending money on something you don’t need.
Setting a very strict budget
Most people who try to spend very little or restrict themselves on their budget end up spending much more on the long run. Don’t price yourself out from your favorite healthy diets just because you want to save. You might manage to do that for three or four days but end up spending more on binge foods a few days later.
Not using your credit card
You are more likely to spend more with your credit card than cash. Well, some people stop using their credit cards to reduce expenditure but this really never works. In the long run, you get to reduce your credit score which negatively impacts on your ability to borrow. You also get to miss out on deals and rewards that come with credit cards.
Spending your money on quick fashion
This is very straight forward. You will save when you buy cheap clothes and shoes but not end up using them in the long term. The clothes will wear fast and properly be out of fashion fast than you think.
Buying groceries you don’t need
How often do you cook a good homemade meal? Well, if not often, why buy foods from a grocery that you might never use again. You will think you are saving by not eating at restaurants, but if you are not going to cook, it is a waste of your money and food.
Not saving money for your retirement
You might be getting more cash at hand immediately by not saving for a retirement, but this move is costly. The monthly salary is taxable. Saving more on your retirement plan is a wise move that will give you more value in the long run.
Going for promotional rates
When a new company introduces a product or service, you might end up getting it at a lower price. Well, this is a great move to save you some few bucks, but the cost will rise when the promotional rates end up. You will start paying high rates for a service you didn’t want.
Buying single items
Buying single items will obviously cost you less, but you will spend more in the long run. Calculate the costs of buying items single or in a package and you will find the long run costs are usually cheaper when buying in bulk. If you have space, bulky or group buying can help you save a lot.