Saving Money Or Wasting Money?

[jeffrey]

These are 5 common ways that I often see or hear about people wasting money when they think they are saving:

Buying gas at the least expensive gas station: This only works if the gas station is on your regularly traveled path, not if you have to go out of your way.

Going to different stores to get sale items: In most instances, the cost of driving your car between stores will be more than the savings achieved.

Buying the cheapest: There is a difference between the cheapest and the best value.

Purchasing items on sale: This works if the items was something that you were going to buy anyway. It doesn't if the items is something you would have never purchased if it wasn't on sale.

Buying in bulk: This only works if you consume all the of bulk item before it goes bad and you don't consume it quicker because you have it in bulk.

I'm sure there are many more of these...what other ways do people waste money when they think they are saving money?

[tinapbeana]

ignoring mental health and well-being. being stressed and/or not getting enough rest has countless effects on physical health now and down the road...

[LuxLiving]

Eating fattening foods and taking expensive diet pills to loose the resulting weight.

[pearlieq]

--Spending money to "save" money.

People buy things online in order to spend enough to qualify for free shipping, or buy 2 products because then you get 1 free (even if you only need 1 in the first place), or buy an overpriced $39 lipstick at the department store counter to get the "free" tote bag.

--Ingoring minor problems.

That noise the car is making, that cough you have, that "pink in the sink", that letter from the IRS. It might seem easier and cheaper to ignore minor problems, but they can quickly turn into big, expensive, and sometimes unrepairable problems.

--Bending the rules

Every so often I hear a story on the Disney boards I frequent about a family that purchased used Walt Disney World tickets on Ebay (the tickets are non-transferrable and re-selling is not allowed) only to find out they were no good and they couldn't get in the park. Fudging on your taxes may seem like a great money saving idea until you see the fines and penalties. Inflating that insurance claim may get you a few extra dollars, or it may get you a record. It doesn't pay to cheat!

[MonkeyMama]

I have to add being too cheap to hire a professional to do a good job. Example, doing your own home renovations when you can hire a professional to do an excellent/efficient job.

This where my father and I differ. After growing up dirt poor and doing everything himself just to survive, he now demands a huge wage and works very hard but still insists on doing everything himself. We laid tile down all throughout the house a few years back and it started cracking. FINALLY my mom convinced him to hire someone to do a good job.

I am more likely to hire people as I value my time. When it comes to something where expertise really comes into play - mechanics, renovations around the home, etc. If you can afford it, it should pay off.

My dad also taught me to change my own oil. $15 down at jiffy lube (including oil filter and oil) that is one thing I can not see wasting my time and ruining my clothes with. Then you have to dipose of the oil, etc. IF I had no money I would do it, but there comes a point where stuff like that is more hassle and time than it is worth.

[cschin4]

The more you shop, the more you will spend. I don't shop unless I absolutely have too. I do not shop for "recreation". And, running around looking for the best deal often results in additional expense in time, buying things you see that you like, etc.

[jIM_Ohio]

These are 5 common ways that I often see or hear about people wasting money when they think they are saving:


I'm sure there are many more of these...what other ways do people waste money when they think they are saving money?

investing in low cost mutual funds which have volatile and sporadic performance mid and long term, but invested because the expenses of that fund were the lowest.

shoes and wardrobe accessories which are "buy one, get one (half off or free).

my pet peeve is people buying a big house, then not having enough furniture to fill it. They saved money on furniture, but have way too much house.

[pearlieq]

my pet peeve is people buying a big house, then not having enough furniture to fill it.

My pet peeve is people saying this! Who needs furniture? Who wants a house crammed from end to end with "stuff"? What exactly is supposed to be an acceptable amount of furniture?

As long as you have the basics (table, bed, a couple of milk crates) you'll be fine. I'd much rather have a spacious house than a formal dining room set.

People do spend too much and buy too much house, but if they can afford the house and associated costs, who cares what they furnish it with? I would actually think it would be wise to spend money on something important like the house and delay spending money on things that aren't that necessary like furniture.

Who do you think would be happier in 10 years? Someone who was able to buy more house because they delayed buying furniture or someone who has a smaller/less desirable house with a matching sofa set?

[th_tan]

Eating fattening foods and taking expensive diet pills to loose the resulting weight.

Thats a good one, can't tell you how many people I know that are in this boat. Want to loose weight? eat healthy and exercise.

[Ima saver]

I have a big house and I furnished very slowly because I was looking at all the stores to see exactly what I wanted and what looked the best. I gave all my old furniture away and I took my time buying new stuff. It looks pretty great. We build one house for people and they over furnished it using an interior decorator. (who also happened to own the local furniture store.)

[rob62521]

I have a big house and I furnished very slowly because I was looking at all the stores to see exactly what I wanted and what looked the best. I gave all my old furniture away and I took my time buying new stuff. It looks pretty great. We build one house for people and they over furnished it using an interior decorator. (who also happened to own the local furniture store.)

Gee, that was convenient for the decorator...

My addition: people buying something because they think they are saving money on it and "may" need it some time in the future. They just don't want a "bargain" slipping away.

[JanH]

Keeping too much stuff. I love my Dad dearly, but he has to buy buildings to store his stuff and then he probably couldn't find some of it when he needs it anyway. Also, a lot of it ruins. I have learned a valuable lesson. But, Dad, I love you loads just like you are.....

[lrjohnson]

Working exta hours or extra jobs to make more money, then spending more on convenience items or child care or "stress reducers" to compensate.

[ericmedem]

Not investing in themselves, and instead saving money in some coookie mutual fund. Why not invest in some sort of education for yourself some books or courses, that will either help you get a raise or enable you to get better employment elsewhere

[Aleta]

People who rent storage areas to keep their items they feel is valuable. Meanwhile, they're paying monthly fees to store it. As I have heard it said, if you have to rent a storage area, you have too much stuff. My parents never had to rent storage areas. You're losing more money than what they stuff is worth. Sell it.