Money-Saving Mistakes To Avoid
While most of us are trying to put away some money for later in life, or even just a rainy day, there are mistakes that most of us make when trying to save a few bucks.
According to a new article by Yahoo Finance, while most of us try to save money by purchasing something that is cheaper, you may just be spending more money. For instance, if you buy a cheaper product and it breaks soon after, you just have to buy another one. You were probably better off spending a bit more at the time of the first purchase to avoid that second purchase.
So what mistakes does the ‘average Joe’ tend to make when trying to save money?
1. Leasing a Car
While in reality leasing a car is fine, there is a reason why some of those lease payments are so low – they only include low mileage for the duration of the lease. All the money you are saving on those low payments now, might just end up in the dealership’s pocket when you have to turn it back in.
2. Health Insurance at the Lowest Premium
Sure, you save on your paycheck, but it sure does hurt when you’re visiting the doctor for a visit. According to the article, people who pay the lowest premium end up ‘paying more annually 96% of the time’. Budget aside, you have to ask yourself what is worth more? Paying more now, or a lot later.
3. Not Setting aside For Retirement
You want to save right now, but will that mean you won’t have anything for later in life? That’s when you’ll want to be relaxing and not working. Many companies will match what you put away for retirement, most up $17,000 a year. If you elect not to set aside for retirement through the office, you could be missing out on thousands of dollars a year.