Five money saving habits that can backfire

June 17, 2014

Here are 5 common money saving habits sins that can backfire if you’re not careful.

 

By Brendon Lee

No doubt that it pays to save. But for some, in their efforts to maximise their savings, resort to penny-pinching habits that end up costing them more in the long run.

Here are 5 common money saving habits sins that can backfire if you’re not careful.

Bulk or discount buying


Malaysians love warehouse sales and you see many lining up for hours to score bargains on items they don’t need or may never get round to using before the expiry date.

Stocking up on household essentials may make sense if its non-perishable items that everyone uses like toilet paper or washing up detergent.

But even toiletries and cosmetics have a two year use-by date. Make bulk-buying work for you by going with a friend and share the discounted items so you only buy what you need yet are able to take advantage of the cost saving.
 Going crazy at dealsites


Group buying sites have grown to epic proportions in recent years with many sites touting hundreds of deals a day.

No doubt, buying deals can save you a lot of money but always remember, as with anything you open your wallet for; ask yourself if you really need or want the experience to ensure you’re not just buying it because it is cheap.

Also note that most merchants will only honour coupons from new customers so hoarding discount coupons won’t always help you save.

Finally, before you hit the buy button: Read all the deal terms and do a little research on the merchant.

Some merchants do offer lower if not the same price as group buying sites if you buy straight from their website.

This is because they don’t have to pay the coupon site any share of the profits. Make sure that deal really is a deal.
 
Forsaking quality for a cheaper price
There are some things in life you shouldn’t skimp on.

Sometimes it’s better to invest in something of a higher quality that will last longer versus cheap products which harm you or which you need to replace often.

This applies to health care, food and maintenance of your house and car.
 
Sign-up offers and upgrades
Merchants are always throwing discounts and free gifts to get us to sign up for their services.

Sales people are trained to push customers to upgrade their purchases.

You may think that you are saving by paying RM1 extra for a larger latte but in reality you’ve just spent more than you intended to.

Some sign-up offers may look attractive in the beginning but may start to eat away at your wallet after the promotion periods ends.

Always ask yourself if you really need a product or upgrade before taking it.

Being stingy on parking and tolls


Some people will go to great lengths to avoid paying toll.

If there’s an alternative route of the same distance then fair enough but if it ends up taking more travel time then the money saved from toll fares are just going into your petrol bills.

Similarly, going around in circles for free parking may be costing you more money than going into a parking lot or parking a little further and walking to your destination.

Indiscriminate parking can also cause wear and tear on your car that could end up causing you more than the parking fee. Or worse, your vehicle could be clamped, summoned or stolen!

Penny-pinching is not necessarily a bad thing.

It’s good to practise good saving habits and reduce our spending.

But a healthy budget also comes from knowing when you are actually saving money as opposed to being true to proverb of ‘penny wise and pound foolish’.

This was brought you by Brendon Lee from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.