Money Saving Decisions That Actually Cost You More

We all constantly scour shops and the internet for deals that save us money. We constantly cut corners and avoid paying certain things to save money. But do they always work. Moolr have taken a look, and discovered some money saving decisions that cost you more in the long run.

Using Offers For The Sake Of It

We all love an offer and a bargain. But is it really always good value for you to take advantage of them? The point is, if you see an item on sale and purchase it, is only a good purchase if it is something that you were going to buy anyway. Or an item you wanted and were planning to purchase at some point. Buying something just because it is good value is not always wise or sensible. for me, many items in supermarkets fall into this bracket.

Store Credit Card Offers

Saving 20% on your purchase may sound like a good idea. It may well be, but on the proviso that the full outstanding amount is paid off quickly. Many will not do this, and will subsequently wrack up big interest charges. Do not risk wrecking your credit score to save a few pounds, especially when you might just end up paying it back through extra charges.

Failing to Sort A Pension

It’s easy to fall into this trap. If money is tight, the last thing you want to do is pay for something you see no immediate return for. But you will probably regret this. By not contributing to a retirement fund, you can really wind up hurting yourself down the line. This is especially if you work for a company that will match your contributions. Failure to sort a pension will either leave you short of funds later in life or require you to work past retirement age.

Buying Low Quality Items

Cheap products may be your best choice for certain purchases (store-brand groceries, discount children’s clothing, etc.), but if you’re looking to purchase a more expensive item that you use regularly, you may want to reassess. You’ll save money up front, but then will pay later on with repairs, and replacements. Look into warranties on appliances and online reviews to find the best quality choice for your budget. The fact is, quality items tend to last longer, so buying cheaper is often a false economy.

Buying Food In Bulk

The average UK household of four could save an average of £60 per month on groceries they end up throwing away. This is the equivalent of 11 meals. Try to avoid falling into this trap. We throw away too much food. If you must buy in bulk, plan ahead. Work out your meal plans, and how you can store food in the freezer if need be.

Avoiding Insurance Costs

It might seem like dead money to you, like putting money into a pension, but one day it may save you a fortune. Having insurance, be it for house contents, your vehicle or even pets is a great idea. You may never use it and thus think it a waste of money, but it is a safety net. It gives you peace of mind that should an emergency occur, you are covered.