Pockets Lint

Four Saving Money Myths

In these harsh economic times, it is only natural for one’s mind to turn to looking at ways in which to save money. There are however multiple money saving myths abound.

Here we are the top five saving money myths that many people fall for that independent financial advisor will tell you.

1. Savings accounts: The name in itself implies that we should be saving money by depositing our funds but that isn’t necessarily the case. In an emergency, it is readily accessible but there are a few cons to consider. For those of you that have incurred debts (credit card etc), the interest rate is probably higher than the rate you receive from your savings account and that point alone means that money is being lost.
2. I only buy in the sales: This idea works only if we purchase items we were going to pay full price for in the first place. For those shopaholics out there, this savings method is not effective. In the sales, we tend to purchase items we wouldn’t normally buy but because it’s on sale. We also buy two to three times than usual, so where is the money being saved?
3. Refinancing the mortgage: Paying lower installments does not necessarily equate to saving money. During the first few years of the loan we pay almost only interest. Instead of extending the term and lowering the interest, try the opposite.
4. Using a 0% or cash back credit card: This only works if you already possess the money to pay for the items you have purchased on the card. If you pay outside the 0% period, the only thing you’re doing is delaying the inevitable - the payment. You would only be saving if you pay off the debt every month, if there aren’t any annual fees and other such conditions.

   Similar Posts:
   Things You Can Do Other Than Drink : I have been on antibiotics…
   The Future? : I’m in business, am well up with the latest…
   Why Bristol is great : Everyone knows that Bristol is great,…

   Comments are closed!