22 So-Called ‘Money-Saving’ Habits That Are Actually a Waste!
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Saving money is a priority for most Americans. Households across the country set out to save 10-15% of their annual income on average, but many are deflected from these goals through unexpected expenses or poor habits. The Federal Reserve reported that only 39% of Americans could afford an emergency costing $1,000, meaning many tactics create little difference in providing them with actual financial security.
“One of the most common ways I see clients get into financial trouble is through unnecessary spending that drags their budget down,” says Leslie Tayne, a debt-relief attorney at Tayne Law Group. The bottom line of successful financial management involves recognizing what habits will ultimately save money and what habits will be a source of hidden costs.
Buying in Bulk Without a Plan
Most bulk purchases, while cheaper per unit, result in wasted products if not used before the expiration date. For example, bulk shopping, often seen as frugal, leads to $1,500 in wasted food per household annually, as reported by the USDA.
Examples of such food include vegetables, dairy products, and meat. Buying in bulk works only if you have appropriate storage and a clear plan to utilize the items before expiration.
DIY Projects Without Expertise
DIY home repairs or handcrafts could save labor costs, but they usually backfire without proper knowledge. For example, trying to fix a leaky pipe resulted in flooding, with repairs costing upwards of $2,000.
Professionals better do complex projects related to plumbing or electrical work to avoid costly mistakes.
Driving Long Distances for Cheaper Gas
People drive more than 10 miles to save $0.10 per gallon, but this burns extra fuel, especially in cars averaging 25 MPG.
According to the U.S. Department of Energy, for most vehicles, every five miles driven over 50 MPH equates to an additional $0.24 paid in gas. Focus on efficiency by filling up at nearby stations.
Discounts with Store Credit Cards
While the store cards offer 10-15% off of your purchase, their interest rates are significantly above 25%, making them costly if a balance is carried. A $1,000 balance may accrue more than $250 in annual interest.
This would also exceed any initial savings. Consider a card with either better rewards or lower rates.
Skipping Routine Car Maintenance
Saving money by forgoing oil changes, tire rotations, or filter replacements can result in major repairs. For instance, not changing your oil can lead to the failure of your engine, which costs some $4,000-$10,000.
Routine maintenance extends the life of your car and also helps avoid breakdowns.
Investing in Low-Quality Items
Opting for cheaper appliances, tools, or furniture often leads to quicker breakdowns and replacement. Suppose a $30 blender would only last a few months; a strong one will cost $100 but can last several years.
Spending more to buy quality saves money long-term.
Signing Up for Multiple Loyalty Programs
Many loyalty programs require extensive spending to obtain rewards, and many points expire before redemption. Balancing multiple programs also encourages overspending to hit thresholds.
Focus on 1-2 programs offering meaningful benefits for frequent purchases.
Using Too Many DIY Cleaners
While vinegar and baking soda are good for light cleaning projects, they can damage more sensitive surfaces, including granite or wood.
Scratched countertops or refinished wood floors can easily cost $1,000 to $5,000 to replace. So, spend the money on commercial cleaners designed for specific surfaces.
Overusing Coupons
According to Finmasters, shoppers who use coupons when making purchases end up spending 35% more than those who do not apply them. Coupons encourage buying things you may not need, which could actually increase spending rather than reduce it.
For instance, if you purchase “two for one” and can use only one, the other one is a waste. Use coupons strategically for items that you already have on your shopping list to avoid overspending.
Cutting Corners on Insurance
USC-Brookings Schaeffer Initiative for Health Policy reports that minimizing coverage may reduce premiums but lead to hefty out-of-pocket costs during claims.
For instance, skipping comprehensive auto insurance can cost $10,000+ after an accident. Opt for balanced coverage that protects against significant risks.
Relying on Energy-Efficient Appliances
Swapping out running appliances for energy-efficient models can take 5-10 years of energy savings to break even on the initial investment. Unnecessary replacements can cut into your savings entirely.
Only upgrade when old appliances fail or are grossly inefficient.
Paying a Little Extra to the Mortgage
According to Casey Bond and Amy Fontinelle, Forbes contributors, putting an extra $50 a month into your mortgage is good, but it provides very little short-term savings compared with investing.
An investment of $50 in an 8% yearly yielding account does grow better over time than marginally decreasing a 30-year loan balance.
Driving Old Cars Too Long
Holding onto cars prone to frequent repairs can cost more than replacing them. A 15-year-old car might require $1,500 annually in repairs, while a newer used car with better reliability can save on maintenance.
Evaluate repair vs. replacement costs to decide.
Buying Generic for Everything
Generics are often as good as name-brand quality, with some important exceptions. For instance, generic tools will break easily, but name brands like DeWalt or Craftsman will not.
Do research to replace important purchases with generic options.
Skipping Fitness Investments
Skipping gym memberships or fitness equipment seems thrifty but opens the door to severe and long-term health risks. Exercising decreases healthcare costs by $500-$1,000 annually.
Thus, investments in health are cost-effective—balance costs by finding budget gyms or free workout apps.
Purchasing Electronics at a Discount
Refurbished or heavily discounted electronics often come with outdated specifications or limited warranties. For instance, a $200 refurbished laptop may fail within a year and require frequent replacements.
Purchasing newer models with warranties saves money in the long run.
Cooking Everything From Scratch
Preparing everything, like bread, yogurt, or pasta, may cost more in ingredients and time than buying store versions. For instance, homemade pasta costs $3-4 per serving, similar to store prices, but requires hours of effort.
Focus on cooking items that offer significant savings or quality improvements.
Canceling Preventative Healthcare Appointments
Skipping dental cleanings or checkups saves $200 a year but may result in an untreated problem that costs $2,000-$5,000 in procedures such as root canals.
Preventive care lowers health costs in the long run by finding problems early.
Freezing Too Much Food
Bulk freezing often leads to freezer burn or forgotten meals. For example, freezer-burned meat loses quality, resulting in wasted money.
Only freeze meals or ingredients you’ll use within 1-2 months and label items to avoid unnecessary purchases.
Chasing Sales Without Strategy
Buying things simply because they are on sale leads to overspending and clutter. For example, paying $50 for a jacket that was originally $100 is still a waste if you don’t need the jacket.
Plan purchases so that items bought on sale align with current needs.
Installing Solar Panels Too Early
Solar panel installations cost between $10,000 and $30,000 upfront and take 7-10 years to recoup in energy savings. They make sense if one lives in sunny areas and plans to stay there for long, not so much for the short-term or low-energy-cost regions.
Extreme Frugality
Extremes such as reusing tea bags, going without heat in winter, or skipping vacations are quality-of-life sacrifices that result in minimal savings and often lead to burnout, higher medical costs, or hidden expenses.
Frugality must be balanced against well-being for financial health to be sustainable.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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