4 Myths About Saving Could Keep Your Bank Account from Growing
There are plenty of tips and advice on how to save money. We all want to see our bank account grow, but how do we know if we are saving the right way?
Growing up, your parents may have recited to you the old saying, “a penny saved is a penny earned,” and while that is true, you also don’t want to be “penny wise and pound foolish.” How you are currently saving may actually be hindering your financial growth.
Here are four myths about saving that could be keeping your bank account from growing:
So, you’ve got your coupons in your hand, and you’re ready to present it to the cashier. After you get your receipt, you high-five yourself because the receipt shows that you saved $20! Yes! But did you actually save? Coupons are designed by companies to get consumers to buy their brand of products and many times, using a coupon may get you to spend more. If you are watching prices as you shop, you might notice that it would be less expensive to buy the comparable product without using a coupon. Unless it’s a particular brand that you often use, clip that coupon and toss the rest.
These days, so many of us make purchases online. It’s so easy; just a click of a mouse and we get what we need almost instantly. You may have noticed that many retailers offer free shipping, but is it really free? There is a catch; in order to get your items shipped without paying for delivery, you must meet a certain requirement. For example, you may get free shipping on an order of $100 or more. So, what happens when you spend $99? Most likely you won’t find anything for one dollar, so you may end up paying an extra $20 where shipping could have only been $12. Proceed with caution on free shipping offers. If you are on a budget and have a set amount you are spending, stick to that budget amount and forgo the free shipping gimmick.
Buying in Bulk
We’ve all been there; we step into a bulk retailer, and it’s a magical place of awe and wonder! However, do you need a 10lb bag of rice? Ask yourself how much you spend on each trip, and if it is fitting into your budget. Pay attention to the items you are purchasing and take note expiration dates. Some items are not worth buying in bulk. If the amount is just too much for your household to consume, you’re literally throwing away money.
Cash only policy
A cash-only policy isn’t always the best policy when it comes to saving money. While you may not rack up credit card debt, there are some downsides to only using cash. First and foremost, if you are strict with using only cash, you won’t be building and maintaining credit. Without credit, you may not be able to get a mortgage for a home or get a car loan if you don’t have the entire amount of cash to purchase outright. Using cash only can be hard to track your spending and keep on budget. Balance your cash and credit spending and make it budget friendly.
What are ways in which you have been able to save? We’d love to hear your thoughts and tips on what works for you and how you have managed to grow your bank account!