5 Common Money Saving Mistakes

The rise of prices for commodities, luxuries and transit (whether it’s fuel, food or anything else) had warred against people trying to maintain reasonable budgets – and it looks like things are going to get worse as times go on. While it’ll get better at some point, we live in an economically unstable time.

People try to save money however they can – and while it looks like one of those things which are fairly easy or straightforward, it can be the opposite. Instead of it being easy to save money, it can be easy to make a money saving mistake that hurts people’s finances and budgets rather than helps.

Here’s a few things that you need keep an eye on in the future while trying to avoid money saving mistakes:

You Stop Spending

A lot of people think the best way to save money is not to spend money – and that sounds like common sense, right? Well, it is to a certain degree. You’ll save money cutting down on non-essentials (maybe you can drink one or two fewer cups of coffee a day, or cut back on other habits which are expensive over time), but the mistake is when you start cutting back on matters of health, hygiene or home security.

What should you do? Keep on going to your checkups, even if it hurts your account – doctors and dentists might be expensive, but making sure your body is in healthy shape now will help you later on; especially if you find out that something is wrong, it’ll be cheaper to deal with sooner rather than later. While it looks like the best way to save money is to cut spending, don’t forget the old adage: you have to spend money to make money.

You Cut Financial Corners

Cheap food and cheap coffee look like obvious choices – and if you do it right, it will save you money (buying at your local farmer’s market, for example). Where’s the downside? When that frugal attitude manages to stretch into other parts of your life. Buying cheap tools for home repair might save you a bit now, but buying quality tools that will last you for decades will save money in the long run. It’s a money saving mistake to think that the price-tag is all there is to the cost and expensive of an item.

The thing you ultimately want to do is not to buy cheap – but it to buy for value. Think about how often you’re going to use that new purchase over the next few years and how long it’s going to last – if the numbers look good, you’re good. If the numbers look bad, shop around else-where.

Looking For a Magical Fix

It’s an easy money making mistake to do – you think that if you cut back on a single part of your life, you’ll soon be on your way to a more stable financial future. It’s a noble goal, but it won’t ever be the best way of going about it. Assess your entire life, not just a single section of it, and try to cut costs in a complete, absolute and long-lasting way. Do not second guess yourself.

Do not find one thing to cut and realize it’s not enough – so you cut another, then another. Think of it over the long time. Making money is not the kind of process that will instantly resolve with a single flick of a switch, it’s the process that takes time, dedication and smart on your part. Don’t make money saving mistakes – save smarter, not cheaper.

Denying Yourself Luxuries

This is a psychological thing. Let’s say that you or I or someone trying to save money has a habit of shopping. You do your best to avoid shopping for a few months, feel confident in your financial habits – and as a result of your confidence you go out and binge.

This is not the right way to save money. Instead of cutting off your luxuries altogether, cut them down a bit – set strict budgets from week to week or month to month and stick to those budgets. Remember; there might be another way you can get a particular fix, and there are a lot of things in your life you could probably get cheaper.

Thinking It’s Going To Be Easy

It’s a horrible illusion to shatter – but saving money will not be an easy journey. The trip to financial stability is a long and hard one, but you can do it right by thinking of it as a long-term problem. If you save just five dollars a day, that comes out to a little over $1800 a year – and if you view it in an even longer term, that’s $18,000 over ten years.

Saving money is a long process, but if you play it smart, think in the long term, avoid money saving mistakes and approach everything with a calm and objective point of view, you’ll find yourself in a more stable future.