If you are someone who looks to save money or trim unnecessary expenses from your budget on a regular basis, you are certainly on the right track. However, it helps to examine some of your saving techniques from time to time to verify that these practices are really helping you save. In “11 Money-Saving Habits that Can Cost You Money,” MarketWatch points out instances where your saving habits may not be as practical as they seem. Here are some habits to reconsider:
Taking a trip for a discount or a coupon. If your eyes light up at the thought of getting a low price, try to make sure you pick up these bargains on routes you normally travel. Unless it is very deep discount, you really don’t save money traveling out of the way for a lower price. Many of us don’t factor in the price of gas or public transportation when we see something on sale.
Buying more to get free shipping or rewards. Money spent is just that. Many of us try to convince ourselves otherwise when we let retailers tempt us to spend more for a freebie or reward. There are instances where this makes sense but often enough, you have just spent more than necessary for something you don’t need or for a single-digit percentage cash back reward that does little for you. Filling your home with extra things not means more money spent, it can also cause clutter that may become a drain on your energy.
Relying solely on a savings account. The MarketWatch article is subtitled, “Even that savings account is hurting your savings.” We certainly encourage you to save money and to have an emergency find that you can access quickly. However, savings accounts are good for emergencies but not great for growing your money over time. This is where a Fee-Only financial planner can help—finding you investment opportunities that will grow your money and help secure your future.