We all have the right intentions when they try to look for saving techniques. We want to make sure that we can make money by saving money so we can reach our financial goals. However, there are some tips that you need to be wary of. They come posing as ways for you to cut back on your spending but when you analyze them, the contrary seems to be more evident.
This is the reason why you have to know how to filter the information that you get – whether it is from an online article like this one or from a famous financial guru. You need to think about your own personal financial situation and determine if a particular advice is for you.
That applies to any saving tips that you will get anywhere. Even if you pass by a boutique, browse through a website or get an offer for a discount, you need to check if it will really help you reach your financial goals or not.
Tricky saving tips that is not really helping
There are various saving techniques being offered that may be doing you more harm than good. Actually, these are all done with the purpose of giving discounts but all under the right context. If not, you may be wasting money rather than saving it.
Store and rewards cards
A store card is something that is offered to you as you are paying for your purchase in the cashier. They will offer you immediate discount on your purchase with a promise of regular rewards programs and occasional discounts. This is actually not so bad, if you think about it, but then again, it depends on how often you will really use that card. Store credit cards can be a good or bad idea but that solely depend on how you intend to use it. If it will not be used all the time, you might just be wasting any annual fees that could be required in that card. Not only that, you may be trying to use that card for purchases that you do not really need. Think about your spending lifestyle before availing of these cards. If you know that you are just getting it for the immediate discount it will give you, then just skip it.
How often have you come across a sign on the window that says “Sale” and that is usually enough for you to stop and get in that shop? While you could find discounted items there, if it is not the reason that you went there in the first place, then that would not have saved you money. Instead, that sale made you spend on something that you never intended to purchase. Even the popular “buy one, take one” promotion has its downside. If you do not need bags or pair of jeans, why should you buy one just so you can get two? It does not make any sense. More than likely, one price is enough to pay for the two anyway so the retailer is not really losing anything. But they did convince you to buy something that you do not need – and that makes them win.
Now this is tricky compared to the other saving techniques. There are instances when buying in bulk makes sense – especially for household items. But if it is perishable, why would you buy a lot? Unless you are hosting a party or you are really feeding an army at home, do not buy perishable goods in bulk – even if the price per piece is lower than when you buy smaller quantities. The spoils from that purchase would make your savings worthless.
Unless you are a regular patron in a particular store or establishment, do not pay for a membership that will give you access to various discounts. A lot of consumers fall prey to this – paying to be a member so they can avail of special promos, contests and discount schemes. When you look at the whole bundle of offers and freebies, it seems like a good deal but that is if you can maximize all of them. If not, then you are just wasting the membership fee that you are paying.
The main premise of all these is buying something that you do not need just for the sake of availing the discount. That does not make any sense because a 30% discount on something that is unnecessary is actually 70% money that you just wasted.
How to set up saving goals
If you really want effective saving techniques, look for ones that will not require you to pay for anything to get a discount. That is the best way to know that you are really putting aside money. Not spending is saving. That is as simple as it can get.
One of the best techniques to help you save is to set up saving goals. By having a goal that is complete with a plan and timeline, you can actually make your progress so much better and faster too.
Simply decide what you want to happen in your future, jot them down and determine your priorities. Most of the time, you cannot pursue all of them at the same time. If that is the case, then prioritizing should do the trick. As you finish one saving goal, start another. Try to use this to motivate you to earn more. That way, you can set yourself up for quite a comfortable future.
Although you may have a lot of saving goals, it will not be as tough if you have the right tools. You can use saving calculators like the one from Bankrate.com. You can also use budget plans to help ensure that you will have a monthly contribution for your saving goals.
Whatever you have decided, make sure that you will commit to it no matter what. Also, give yourself small rewards every now and then. These saving techniques will eventually help you reach the goals that you have for your personal finances.