Piggy bank saves moneyVery often, we get caught in a very simple trap. We chase good, money-saving deals thinking that they are good for us in the long run. If we’re not careful, we can end up spending more money than we save, and here some five situations where this might occur.

  1. Know the difference between buying “cheap” and buying for “value.” Many people buy the cheapest products out there. This is okay for certain, generic products. However, for your electronics and durable “white” goods, like washers, dryers and refrigerators, you should buy certified name brands. You want these things to last a long time, and without any headache or heartache. This goes triple for automobiles. Make sure your car is safe and dependable, ignoring the special used card “deal of the day.” You will probably spend a lot of time in it, so you want to ensure it is safe.

  2. Impulse buying at sales. I know what you’re thinking. I save money at sales. Tons of it! All the time. However, sales exist solely to stimulate your craving for impulse buying. I wrote about my own impulse buying problem, and sales always trigger a relapse. Every time I see words like “Clearance Sale,” “50% off” or “Buy 1 Get 1 Free,” I find myself thinking “I really do need another pair of jeans,” or “I have always wanted to try Nutella.” Be very wary of sales. When going shopping, just buy what you originally planned to buy. Stick to your shopping list, and avoid the temptation of sales.

  3. Going out of your way to save gas. If the cheapest gas station is far from your standard route, you are better off topping at a more convenient location. The amount of gas you use to go to a gas station might actually cost you more than the savings you get. Use websites like http://www.gasbuddy.com to track which gas stations are cheapest along your daily commute. Do not fall in the trap of going for always getting the absolute cheapest gas out there.

  4. Going out of your way to go to a sale. Similarly, people tend to go out of their way to visit warehouse stores like CostCo or Sam’s club. You need that you are saving more than you are spending in gas and time. Your time is valuable, and you should ration it carefully.

  5. Buying bulk. Buying bulk has its own time and place. Buy only in bulk if you know you are going to use all of it. For example, I buy toilet paper in bulk. I am 100% sure that there will be a day when I run out of toilet paper. In fact, it seems that the more I buy, the quicker I run out. (I hope it’s just some weird subjective thing. I would hate for it to be true.) However, I also have 40 sticks of chapstick, and I doubt that I will ever run out. It was on sale in bulk at Costco one day, and I thought it was a good idea. I do get chapped lips a lot. It was only afterwards that I realized that I only use one stick a year. Right now, I have about 38 years of chapstick left.

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