People are very inclined to give advice, especially when it comes to saving money. However, this does not mean that you should believe every piece of advice you hear, as following the wrong money saving tips can cost you dearly in the long run.
Here we review the most wrong financial habits that you think may save you money, according to writer Paul Michael in an article in “Reader’s Digest” in its Australian version:
Attraction towards offers
If you’ve been shopping around and come across “buy one get one free” offers, stop and ask yourself: Would I really have bought that much of this product for that price anyway?
If you are shopping for jam and find this offer on jam, it may be a tempting offer to stock up on a large quantity of it, but if you are out looking for sneakers, you should stop and think if you need a second pair of shoes.
Buy cheap products
If you buy a $1 screwdriver or get a pair of shoes for a few dollars at a flea market stall, chances are you’ll be buying another one soon. Cheap, poor-quality items may save you a few dollars in the short term, but you’ll have to pay more later. to replace it.
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Buying food in bulk
Buying in bulk is fine when it comes to some products, but you have to be careful when buying perishables.
There is no doubt that when you see a whole group of bananas at a low price, you will buy them, and after buying them for a while, you will notice that the bananas turned black because you bought a lot of them.
Create an emergency fund without contributing to retirement
These days it is essential to have an emergency fund, as financial experts see that you need to take care of your financial future. But if you’re saving money in an emergency fund or savings account but not putting money into a retirement fund or other long-term plan, you’re not preparing for your old days.
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Irregular visits to the dentist
The writer emphasized the necessity of visiting the dentist on regular appointments and undergoing minor treatments at the present time, instead of paying for an exorbitant major treatment at a later time.
Put off investing until you’re “rich”
It can be hard to think about investing when you’re not making a lot of money, but even if you’re just starting your career, it’s never too early to set up an investment account.
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Avoid all debt
An unpaid credit card balance or a high-interest loan can hurt your credit score, but – according to Fidelity Investments – certain types of low-interest debt (such as a mortgage) can help you achieve your personal goals without hurting your credit scores.
Rush to buy a home
Rushing into buying a house can do more harm than good, and trying to pay off debt or take in a great job offer in a different city when you’ve already bought a house can hurt your finances, however, there’s no harm in renting an apartment until you’re absolutely sure of it. your future plans.
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Rely on credit cards instead of emergency funds
One of the biggest financial mistakes you can make is relying on a credit card during an emergency. Instead, your best option is to create an emergency fund made up of three to six months of living expenses.
Not adhering to the budget
Budgeting may seem unnecessary when you’ve made enough money to make ends meet. However, without a budget, it’s hard to know how much money you’re spending. To avoid getting yourself into debt without realizing it, set a monthly budget and stick to it.