How Even Money Saving Ninjas Can Fall For False Economies
Are you a money-saving ninja? Perhaps you’re savvy with your use of electricity and always turn appliances off or unplug. Maybe you’ve worked out how to save on your bills. You could even be an expert at economizing at the grocery store.
But when it comes to avoiding unexpected expenses, if you make false economies, you’ve still got a lot to learn. False economies are perhaps the biggest factor behind large bills. If we don’t learn to make savings wisely and learn the difference between cost and value, it can actually end up costing us more in the long run. There are some common areas where you should think twice when making a decision. Saving a small amount on an initial price is not worth it if that decision leads to costly problems and complications further down the line which could have been avoided with a little more upfront investment.
Remind yourself that it’s not about the amount – it’s about value, which happens to be completely different from the price you pay. Read on to find out some common false economies to avoid…
Are You Covered?
Many of us see insurance costs as somewhat of a needless expense and try to cut corners by either skipping out altogether or not taking the appropriate level of cover for our needs. And with insurance premiums ranging from our house and car insurance to medical coverage, to holiday insurance, it does seem like a long list of policies. While it is frustrating to pay out month to month without needing to make a claim, remind yourself that what you are actually buying is something rather priceless – peace of mind. Accidents and illness happen to even the most cautious and risk-averse of us, and the bills that result when you aren’t insured in these situations can easily be enough to bankrupt you. Minimize the cost by comparing insurance providers to make sure you’re getting the best deal – loyalty doesn’t pay when it comes to premiums. See if you can save money by bundling different types of coverage with one provider. And if you anticipate problems and know that you need extra cover for a certain area, say dental work, try a specialist provider such as Humana Dental Insurance rather than opting for a blanket cover, as this is more likely to match your needs.
Doing The Bare Minimum on Debt
Many of us have been raised to see credit cards and loans as something to be avoided at all costs, but they can actually be a useful tool. The secret lies in using them well, to build a good credit rating and dodge the pitfalls of expensive financing. However, if you only make the minimum repayment each month to save money, you’re doing it all wrong and wasting thousands. You need to pay above the least amount to ensure that you are paying off the balance and not just the interest. If you aren’t on a 0% APR deal, then switch to the one you can find with the longest term and ‘snowball’ the debt by making as large repayments as are comfortable. In this way, you could end up making major savings.
On The Road Again
If your vehicle seems to be running fine, you may feel like you can economize by skipping that service. But unless you know what you’re doing, it’s a bad idea. A service is a chance for the repair shop to anticipate and warn you about problems or parts which are approaching the end of their lifespan. If you know about these in advance, you can budget to replace them and shop around online for the best deals on car parts. If you skip the service, then problems can easily mount up, making for more expensive issues further down the line that you need to fix at very short notice – which generally means having to pay more! So do yourself and your car a favor and keep it in good running order.
FIND MORE FRUGAL LIVING TIPS HERE
ARE YOU A BEGINNER & NEED SOME HELP? GO HERE!
I strive for all of the deals I post to be 100% legitimate so if you ever find a deal that is not working for you, please comment below or send me an email so that it can be fixed! Thanks so much for being a loyal Savings Aplenty reader!