2013: The Year of Savings Myths Banished

With every new year there’s a new opportunity to get your savings in order but some people aren’t helping themselves by believing in the same old savings misconceptions.

 

Image courtesy of Robert Prucha from Flickr - http://www.flickr.com/photos/62242760@N02/8335589660/

Set yourself up for savings success by making sure you’re not falling for any ofthe following savings myths.

Myth: Saving Money Makes You Miss Out On Things

There’s a common misconception that saving money means locking yourself indoors and doing your best scrooge impression while your friends and family have a great time without you. Thankfully, that’s a myth.

Saving money isn’t about denying yourself the things you want, it’s about cutting down on unnecessary expense. There are plenty of opportunities to have fun with friends and family for cheap, and you might discover that there are plenty of cheaper options to enjoy your favourite activities.

Myth: You Get What You Pay For

A more expensive thing is much better than a less expensive thing, right? In a lot of cases this could be true, but quality isn’t always defined by the cost anymore, which makes this another myth.

Many unbranded grocery items are equal or marginally worse than their branded counterparts. Toilet rolls, biscuits and cleaning products are just some of the things that often contain exactly the same products as you might find in their more expensive cousins.

Myth: You Will Always Save Money with Discounts & Sales

If you’re paying less money for something, why wouldn’t you be saving money? The fact is, that unless you’re planning on buying the product anyway, this myth could be costing you money.

The problem here is that when items are on sale, you’ll start to convince yourself you’re getting a great deal you just can’t miss. In reality, you likely wouldn’t have purchased the item anyway. Try to only purchase in the sales when you need the item, and avoid impulse buys.

Myth: You Already Have Enough Money – Saving Is Unnecessary.

You already have a nest egg stored away, and plenty of emergency money kicking around; You’re saving is done, right? I’m afraid not.

The economy is a long way from stable at the moment, and a costly emergency could be just around the corner, financial stability today doesn’t guarantee financial stability tomorrow. It’s not all doom and gloom though, if you’re careful with your money and plan ahead you’ll always have a safety net. 

Myth: Buy In Bulk, Save In Bulk

Why buy a chocolate bar when you could get a multipack and save yourself time and money? It’s commonly held knowledge that buying in bulk will always save you money. While this used to be true, supermarkets have gotten smart to this and this has become a myth.

Before purchasing a multipack, be sure to check the price per unit to see which will work out cheapest for you (this information is usually on the shelf edge label in most supermarkets). Something else to bear in mind is how perishable the item is, make sure you’ll be able to use everything before the date on the box, or you’ll be wasting money.

Just the Facts

Now that you know some of the knowledge pitfalls to avoid, it’s time to start your new year off with some savings. What are some of the biggest savings myths you’ve encountered?

Featured images:

•  License: Creative Commons image source 

About Author | Geoffery is a personal savings blogger.  He specialises in fixed rate savings & bonds and writes for sites like Fair Investment Company - a savings and investment plans specialist.