There are some ways to save money that can backfire. Often, the time and energy you put into saving a few dollars are not worth your time or energy at all. Here is the list of money savers that in my pint of view should be avoided.
1) Driving an old car
If your car is old, your upkeep costs might be even higher than you think. According to Junkacar.com, the average annual maintenance cost of a vehicle 7 years old is $1,000 and it doubles to about $2,000 when you reach 12-15 years. You are likely loosing more money than you would if you traded to a new or newer model.
2) Trying to find the best deal
Your risk is while continuing to search for better bargains, the original good deals you already found might be gone by the time you want to book them. And make sure you are not spending more time than is equal to the savings you will gain. Remember, time is money, too.
3) Cutting coupons
Don’t waste your time cutting coupons or subscribing to multiple newspapers for the sake of couponing. Instead, install the web browser extension “Honey” which adds coupon codes to most of your online orders automatically. Subscribe to email newsletters for retailers you regularly visit.
4) Adding Products to get free shipping
It is nothing more than a marketing trick to get you to spend more. If shipping is only a few bucks, why pay more than you need to? Don’t get lulled into the habit of finding things you think you need in the name of free shipping.
5) Investing in extended warranties
Convincing yourself that extended warranties are worth the money is fear-based marketing working against you. Consumer Reports say that almost all extended warranties aren’t worth the money. You are better off putting aside the money you would have spent on an extended warranty to cover the cost of repair.
6) Keeping 0ld appliances running
By using old and inefficient appliances you probably overpay in electricity every month. Most important, invest in a programmable thermostat! You’ll save yourself 5 to 10 percent on your heating bill every year.
7) Not Actually saving saved money
Don’t cut costs and then spend those savings elsewhere. Instead, as soon as you cut out a recurring cost, set up an automatic transfer to savings account or boost your Start All Over (SAO) Fund, Fire or Emergency Fund or Investment Portfolio. This way you actually start saving the money you saved.
Sven Franssen