You’ve laid out a savings plan and you’ve stuck to it. However, when you do a review of your finances, you find that your plan just didn’t work. The thing is, you can always save money, but the way you cut back makes the difference. In certain occasions, certain saving tactics can cost you dearly.
Although saving money is done with the best of intentions, sometimes it leads to financial blunders. Here are some money-saving tricks that sabotage your budget:
Not leaving enough for certain wants and needs.
It’s quite possible to spend less each month, but not leaving any budget for special occasions or occasional indulgences can ultimately backfire. As much as you want to save, it’s best to create a budget around your life. Leaving no breathing room will end up in failure because your desire to spend will catch up with your need to save which results in you splurging instead.
Buying in bulk or on sale just because.
It’s not a secret that buying in bulk or purchasing during a sale are good ways to save. However, it may end up costing you more money when you do it for the sake of earning credit card rewards. Keep in mind that you need to buy what you use.
Being too happy with coupons.
Sites such as Coupon Clippers, Groupon and LivingSocial are so tempting that you just can’t help but grab all that you can while it’s still available. Doing this leads you to spend hundreds on deals you don’t even need or won’t use right away. This is why you should only get coupons for products and services you know you will use in the earliest possible time.
Purchasing items cheap.
Yes, when choosing between two similar tables, you tend to choose the cheaper one for savings purposes. However, doing so most often leads you to replace them sooner than expected. This is why, even with a tight budget, choose items that will last longer.
Saving money is very important, but being so stringent about not spending often leads you to spend more. So, be wise about your choices and you’ll reap rewards soon enough.