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Posted in Frugal Living

7 Things You Should Not Do When Saving Money

7 Things You Should Not Do When Saving Money

When it comes to living frugally and trying to save money everybody eventually comes to a point where they have to ask themselves, “Is this worth it, just to save money?” No matter why you are trying to save money there are some things that are just too risky and too much hassle to be worth it. Everyone’s situation is different, but here are a few tips for the extreme short term saver and the long term retirement planer both.

Don’t Risk Dodgy Food or Buy Used Beauty Products

Things You Should Not Do When Saving Money

For the frugal gourmet it can sometimes be a tough decision to throw away food. Expiration dates usually leave a few days as a buffer, so something that is a bit old might still be okay. But if you ever have a reason to suspect food is bad, toss it. It is not worth food poisoning just to save a few dollars.

For similar reasons, never buy used beauty products. Beauty products, including perfume can carry all kinds of bacteria, so even if it is cheaper, it is never a good idea to buy used makeup, especially from someone you do not know.

Don’t Try To Use Your Home As A Piggy Bank

Some homeowners will be tempted to refinance their home as soon as it has a little equity built up. This is a bad idea because when the market dips the home owner can be in deep financial trouble. The only time it is a good idea to dip into the home equity pool is when doing something that will add value to the home, but many of these improvements will not put back what was taken out.

Don’t Avoid The Doctor or Dentist

When living on a budget going to the doctor or dentist just for a checkup seems like a horrible luxury. Skipping these appointments can end up costing you far more down the line. The dentist is especially important, because while you might notice if you have a cold, you are unlikely to notice a cavity forming, and it costs far more to fix later than a regular dentist checkup would have.

Don’t Buy the Cheapest Product

This is something that we have all been guilty of at one point or another. Buying the cheapest product off the shelf to save money in the short term is not a good idea. This often comes back to haunt us later though, as the cheap products are cheap because they are cheaply made and use substandard materials. The cheapest products often break the quickest, so they have to be replaced more often costing more money in the long run. A well-made pair of shoes may cost $100 but will last 10 times as long as a pair of $20 shoes.

Don’t Invest Blind

7 Things You Should Not Do When Saving Money

No matter the size of your investment, never go into it blindly. Research the interest rates for different account types, and if you are buying stock examine the stock’s performance, and professional stock advisors opinions. If you are investing in internet businesses such as buying / selling websites and domains, read some good forums before investing a large amount of money.

Don’t Go Overboard with Coupons

While coupons can be a great way to save money you have to decide if the time it takes to find all the coupons and the hassle of using them at the store is worth the money you save. Also consider, many extreme couponers buy everything that is on sale, instead of what they need costing them more money in the long run. So while coupons can be useful, extreme couponing will end up taking more of your time and money.

Don’t Skip Parking Meters

Never try to skip on paying the parking meter or other parking fees. No matter how fast of shopper you are you will eventually be unlucky. One parking ticket will cost far more than you would save by not paying a dozen times. The fines and penalties are simply not worth your effort to save a few cents; in fact you’ll end up paying far more in the long run.

Forget the Restaurants and Fast Food

The $5 you spend on lunch everyday might not seem like a lot of money but it ends up adding up. If you are trying to save money, stop going out to eat. You may end up shedding a few pounds, which is a win-win situation as well.

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