Was there a point in your life that you’ve done all things imaginable in order to save money, only to find out that you’ve paid more or wasted an extensive amount of time?
Perhaps you’ve misread the terms on a voucher, signed up for a fake or sneaky promotion, or simply made a poor decision. It’s devastating when your money-saving efforts brought more harm than good. With a huge number of money-saving hacks floating around, it’s hard to tell what’s actually legit.
So, it’s best to scrutinise each and every hacks that you come across to avoid wasting your precious time and hard-earned money.
1. Trying A New Type Of Budget Without Assessing Your Needs
When it comes to saving money, budgeting always comes to the list. It may sound like a child’s play but it can be a daunting task especially if you don’t evaluate your spending habits. By distinguishing your “needs” over your “wants,” you’ll be able to reign in your spending habits.
The old-fashioned tried and tested envelope system could fail at the hands of a chronic spender.
2. Investing In Actively Managed Funds Without Taking Fees Into Account
Paying more for an actively managed mutual fund instead of an index fund usually doesn’t work out. Statistics show that after five years, 80% of actively managed mutual funds don’t beat the index. Another thing worth noting is that the amount you pay in fees is typically equal to or higher than the return the mutual fund generated above the index.
Trying to figure out which mutual fund will be the best performing one is a fool’s errand.
3. Taking Advantage Of Introductory Deals Without Watching The Post-Promotion Terms
Taking advantage of inexpensive honeymoon rates may result in immediate savings but you may end up paying more after the introductory period. Check out the post-promotion terms and weigh in the costs before signing up for such deals.
4. Using Travel Deal Sites Without Checking Prices
Signing up for travel alerts in order to find good deals may end up a waste of time. Instead of uncovering great deals, the site may not offer prices better than what basic searches deliver. It’s wiser to book cancellable reservations directly with a hotel, so if ever your travel plans change, you don’t owe money and if prices fall, then you can rebook to save money.
5. Using Coupons To Save Money Without A Plan
Coupons may help you save and get out of debt but they can become a problem when you buy things you don’t actually need just because you have a coupon for them. So, instead of saving money, you’ll end up spending more.