Common Money Saving Myths and Mistakes

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January 19, 2018
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January 19, 2018

Common Money Saving Myths and Mistakes

When it comes to saving money, there are many myths and mistakes which are common among most people. Here are three of the most common things to change to save money more easily.

Giving Up All the Things You Love

A common misnomer is that saving needs to be painful. Many people think that in order to save you have to give up all the things you like and whilst you are probably right about being able to save a lot if you cut out your daily Starbucks, if you really feel that you need it then you should look at saving money elsewhere. There are typically other areas where you can save more easily without the urge to purchase “just one”. By saying that you will save money on something which you really like (in this example, Starbucks) you are likely to fall prey to the “just one” mentality and worse still you are unlikely to count that one purchase because no one wants to admit that they broke their saving habits.

When saving it is best to reduce your spending in areas which you will not miss as you are more likely to stick to saving in this area and will accept and recognise when you don’t. A good place to start is to monitor which foods you throw away repeatedly, they may be cheap but if you are not using them it is wasted money – cutting them out of the weekly shop is a great start to saving money.

Always Turn Lights Off When Leaving a Room

It is a good idea to turn your lights off when they are not needed for a long period of time and this will inevitably reduce your electricity bill but turning off lights which are going to be turned back on shortly after is not good as far as saving money is concerned. Leaving lights on uses less energy and money than leaving them on does and typically this will remain true for up to 15 minutes. Turning a light off in a room to turn it back on again 5 minutes later will slightly increase the amount of electricity you use but if this occurs regularly throughout the house the costs can accumulate quickly.

Saving Means Lower Price Is Better

One of the biggest myths when it comes to saving is that the item with the lowest price tag is always the best option. Whilst this can often be the case a lot of the time you will get what you pay for and whether it is groceries, technology or clothing cheaper options can be poor quality making them worse value for money.

In the same way paying more does not always mean receiving better quality. It is very common for people to pay more for less usually because of branding. Many brands have good names and are associated with quality even if this is not true, in some cases they are holding onto the reputation of when their products matched the price they demanded and in other cases the high price creates the illusion of high quality.

One of the best ways to save money is to not focus on the price alone, also consider the quality. This may mean spending more for better quality in some cases but it can also mean a significant drop in expenses when buying items such as clothing. Overall you will likely find that there are cheaper alternatives that offer the same quality and you will definitely start to get better value for money.

These are just three areas in which you can save money but by applying all three you should be able to make saving less painful, reduce your electricity bill and get better value for money.

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