All about the challenges of Midlife Finance

Worst Money Saving Advice

Every family is in search for money saving tips and advice. If you have coupons or know of a good deal, people will always be willing to listen. Sometimes people may think they are doing well saving money or doing things they think are saving them money but often they could be steered in the wrong direction. Below are some common mistakes people make when trying to save a buck or two but in reality are making a poor decision.

Buying in bulk

When it comes to saving money on food, people often think that buying in bulk is the way to go. This just isn’t the case. There are certain situations where buying in bulk may not be the most economical decision. For example, if you live alone or have a small living space, it just isn’t practical. If you live alone, most of the items will probably expire by the time you actually would get to using or eating them. This is a waste of money. Plus if you live in a small space you will have nowhere to store all of the bulk size items which could cause some issues. This is a waste of money as well. With all of the money wasted on groceries that have gone bad you can play Valley of the Gods Online and maybe win something!

On Sale does not equal saving money

A seasoned shopper knows better than to think that just because something is on sale means you are getting a great deal and therefore saving money. Some stores trick customers this way because they raise the price to begin with so the sale price is not that great of a deal. Another method is to buy one get one free deals but they up the rice to cover the cost for the “free” item. Always do your research when shopping, especially with big ticket items. If you don’t do your research you could be a victim of this trick.

Pay minimum on credit card

When you have a large credit card bill, the absolute worst thing you can do is to pay the minimum. Any extra money you have should be put towards paying off the card. If you are paying the minimum and dragging out the payoff, you are increasing the amount owed because they are collecting and charging interest on your outstanding balance. The more you pay, the lower the interest you have to pay. Otherwise, you are just racking up your debt.

Hold off on insurance

A lot of people who don’t have money try to skimp out owning insurance. Whether it be health insurance, dental insurance, eye insurance, rental insurance, flood insurance, car insurance, they try to be careful and take the gamble of not having it. This is not a smart idea because the cost if something were to go wrong would be worse than the cost of having the insurance. Always make sure you are covered, this is  not an area to skimp on.

Please be sure to steer clear of these common mistakes that occur while trying to save some dough.

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