Any regular visitor to our blog will know that we are all about budgeting and finding the right option for your needs. However, there are some budget options that promise ‘value for money’ that could actually cost more in the long run. Just like how those ‘fat free yogurts’ haven’t been improving your waistline as much as the charming salesman promised they would, there are several ‘value’ options that should be avoided, and ‘premium’ alternatives that are actually better in the long run.
So, as the title suggests, today we’ll take a look at some of the most evergreen ‘money saving myths’ and put the record straight once and for all.
Myth #1: Stocking Up During Sales
This may be a bitter pill to swallow, but chances that habit of splurging during sales time may not actually be saving you any money. Sure waiting for the right item at the right price can be a very savvy strategy. But retailers have become wise to our habits, and are now devising genius new strategies to exploit them.
Studies have shown that buying new clothes during the January sales usually does not stop us from parting with our hard earned cash later on in the year for similar items. And those outlet stores that promise special discounts? They need to after the increased expense of paying for petrol and driving out to them. Time is money after all.
Myth #2: Private Healthcare is Too Expensive
As kids, waiting until the count of 3 was actually worse than the pain of ripping the plaster off your skinned knee. As it turns out, that never really got any more bearable into adulthood. The pain may be more bearable now, but the wait time has grown exponentially.
Anyone who has ever needed to rely on the NHS for serious medical treatment will know that the endless wait for an appointment is usually the worst part. The uncertainty, putting your plans on hold and taking time off of work can make the agonising wait for treatment all the more unbearable. Not to mention the financial impact that an extended period of sickness can have.
Before you start thinking ‘that would never happen to me’, extended periods of sick leave are far more common than you might think. Recent studies have shown that more than 1 million people had to take more than a month of sick leave last year in the UK alone. Not many of us can afford to take that kind of time away from work, and still be able to fulfil our responsibilities and this is where a private healthcare plan comes in. The added benefits are easy to see on plans like this, such as being able to see a specialist quickly can pay for itself in the long run, especially for serious illnesses that require regular check-ups and expert attention.
Myth #3: Credit Cards Will Get Me into Debt
As financial responsibilities increase, so does the fear of getting into debt with the latter being a strongly-associated stigma of credit cards. In order to save money and avoid debt, many choose to give credit a wide berth, however this may be at the expense of achieving long term goals in the most cost-effective manner. Using a credit card responsibly is one of the easiest and most reliable ways to build a strong credit score which will help you to secure the best terms that are available when applying for financial backing in the future. A poor credit score can see you charged with higher interest rates, given a smaller credit limit or even rejected outright.
Myth #4: Buying Cheaper Products
When trying to save money, many are inclined to pick the cheaper option, however this may be at the risk of paying more in the future. There is no sense in throwing away money on cheaper items which aren’t sustainable or designed for long-term use, as these usually end up being the most expensive to repair. Further to this, when a product does break, consumers may assume that they are doing the right thing by repairing it instead of replacing it with a brand new version. However, reports show that even those who take out a repair warranty for their product don’t actually save much money overall, with the average warranty costing £90 and the average repair costing £100.