Swindler's Tips: 5 Common Pieces of Money Advice You Shouldn’t Follow

moneymoneyThere is much advice about saving money and you may be doing all you can to live within your means, but sometimes money-saving advice is not as effective for you as you once thought. While it is certainly wise to live within your budget, there may be some moves you are making that sound smarter than they actually are. Here are 5 money moves that may not be beneficial for your personal financial life!


Bulk Shopping

It was quite a popular trend - shop in bulk and save so much money. While there may be some monetary savings in the buying in bulk theory, the amount you save may be lost in wasted product. Buying in bulk can be smart when you only purchase products you will actually use consistently such as cleaning products and non-perishable items. Otherwise, stick with a weekly grocery list and coupons to keep your refrigerator stocked with fresh foods that will be used quickly.

Related: 10 "money-saving" tips that actually leave you broke


Skipping Maintenance Services

If you try to save money by skipping out on maintenance services for your appliances, your vehicle, or other equipment around your home, you may be making a mistake. Neglected services likely mean your machines are not running efficiently as they should be wasting fuel, electricity, and risking a complete mechanical breakdown. What you are 'saving' in maintenance costs you are losing in other ways. Make a list of maintenance services that need to be completed throughout a year and budget money into your savings to ensure you have sufficient funds to cover these costs.

Dismissing Warranty Coverage

If your general rule of thumb is to refuse all warranty offers regardless of what it is you are buying, you may want to reconsider. There are certain warranty coverage offers that should at least be reviewed in consideration of your specific needs including cell phone warranties, computer warranties, extended car warranties, and home appliance warranties.

Snagging Family Entertainment Passes

If you have invested your money into passes for family entertainment, your intentions may be have been good at the time but how realistic was your plan? Many families will invest big bucks into memberships at the YMCA, the local amusement park, or other entertainment facilities only to find they rarely have time to make use of the passes.

Using Credit Cards for Incentives

If you spend on credit just to earn more airline miles or cash back rewards, you could be making a big money mistake. If you have do not have the cash to back up the purchases you are making on credit, do not swipe your plastic. There are no rewards or incentives that will justify digging yourself into a credit nightmare.

-By Anna Newell Jones


For 7 simple ways to save money on your electric bill, visit Babble!

MORE ON BABBLE
10 money mistakes couples make that can lead to divorce
The 7 biggest money mistakes couples make - and how to fix them
7 steps to a better budget this year