4 “Savings” Opportunities That Might Not Save You Money

If you’re like most people, you always appreciate an opportunity to save money. You might even be actively looking for ways to save, so that you can stash more money in your retirement fund. That’s good thinking!

Unfortunately, some common “savings” opportunities don’t really save you any money at all. If you’re using them wrong, they might even cost you more!

Coupons. Coupons can be a great way to save a little money, on everything from groceries to online purchases. But there’s a catch: Coupons are actually costing you money, if you weren’t going to buy the item anyway. If you clip grocery coupons, look for the ones that match products you use regularly. And if you receive emails with coupon codes for your favorite stores, don’t use them unless you were already planning a purchase. Otherwise you just got suckered into spending more money than you had planned.

Bulk deals. If you use an item a lot, it can be cheaper to but it in bulk. But unless you have a large family, be wary of bulk food deals. In many cases, you will just end up throwing away expired produce, cheese, and more.

Cash bonuses for monthly services. Banks, utility companies, and other service-based industries often offer a cash-back bonus for signing up with them. It might sound like a good idea, but make sure to compare the cost of using that service with other competitors in the area. You’re probably paying for that cash-back bonus in hidden fees or steep monthly charges.

Credit card transfers. Transferring the balance of a high-interest card to one with a zero-interest introductory period can be a good idea. But make sure to investigate hidden fees first. A balance transfer fee or high membership fee can cancel out some of your potential savings. And of course, aim to take advantage of that zero-interest period and pay off the balance. Don’t just “float” until the next transfer.

Sometimes a good deal really is a good deal. We aren’t saying you shouldn’t keep looking for them. Just remember to keep your eyes on the fine print! And as always, give us a call with your financial planning questions. When you free up room in your budget, we can help you turn that extra cash into a plan for the future.