We can often become a little delusional with our money, convincing ourselves we are saving when more money is actually being spent. There are a number of areas where you may mistakenly assume you’re saving money, when more is actually being spent in the long run.
1) Eating at a Pound Menu
While eating out is generally considered expensive, it can be quite common to convince yourself otherwise when it comes to a pound saver menu or something similar. The individual food items may cost a pound, but most people rarely have just the one. With careful spending, the right ingredients at home last longer and are much cheaper.
2) Bargains You Don’t Need
This is an obvious trap to fall into, as shops often use various marketing means to encourage sales. Yet, while an item might be cheaper than usual, can it really be counted as saving if you weren’t going to buy it otherwise?
3) If It Isn’t Broke Don’t Fix It.
Similar to the last point, you can often be deceived into thinking it’s time to upgrade. Whether it’s your phone, washing machine, car or another expensive item, companies like to give the impression that you need the latest models.
In short, if your current item is working perfectly fine, is there any need to expensively upgrade? There are times when such appliances may need replacing, but sometimes it isn’t necessary.
4) Letting Bills Wait
This point might be more unusual, but it’s still an area a lot of people overlook. Many people try to balance their accounts, often leaving bills left unpaid in the process. The argument might be that they’re saving money by waiting until it’s easier to pay off, but this simply isn’t the case.
Many companies offer bonuses for paying the bills early, which is clearly a more obvious way to save money. You may be light on cash for the next few weeks, but leaving the bills unpaid only creates more debt.
5) Thinking It Will Cost Less In The Future
A common lie that we tell ourselves is that everything will cost less in the future. It’s a common believe that technology, for example, gets cheaper. Yet as it does, developers and producers can afford to put more into a given device, increasing the cost.
Likewise with bills, a constant demand for energy means that, no matter how cheaply it is produced, there is a limit to how cheap it will be sold. As such, you should avoid this path of thinking, as it can lead to overspending in the future.
6) Drinking Before Going Out
A common lie told to justify buying drinks is that it’s cheaper to drink inside before heading out. Yet, if you’re going out at the same time anyway, then the amount of money hasn’t changed. In fact, by buying drinks before hand, you’ve spent more, further reducing your savings.
7) It’s An Investment
Perhaps the biggest lie we tell ourselves is that buying any given item is an investment. You might buy a new computer under the guise of saving money. Yet if you abandon this plan and upgrade a year later anyway, then the money hasn’t actually been saved. If you plan to make an investment, then stick with the long term plan; that’s where the real profits come in.
With a wide range of savings accounts to choose from, take your time. Choose and compare from a range Fixed Rate Bonds, business savings accounts and other accounts such as Instant Access Savings Accounts. So that down the line of saving you don’t “lie” to yourself.