Be wise when it comes to how you choose to save cash. | iStock.com/nd3000
7 Signs You Will Not Be Able to Save Money
Saving a large sum ofِ money canِ beِ a real accomplishment, butِ it’s notِ uncommon toِ hit someِ bumps alongِ the way.
This isِ a recipe forِ disaster becauseِ a financial emergency couldِ strike atِ anyِ moment.
If saving doesn’t comeِ naturally toِ you, thisِ mightِ haveِ caused youِ toِ lookِ forِ shortcuts, soِ you couldِ stash moreِ cash inِ your bank account.
Here are seven of the worst ways to save money.
1. Always buying in bulk
Bulk doesn’t always save money. | iStock.com/tanialerro
Buying household items inِ bulk isn’t alwaysِ the bestِ move.
If youِ live alone andِ don’t haveِ frequent house guests, there’s noِ needِ to pay forِ a membership atِ a warehouse club.
Are youِ reallyِ goingِ to useِ theseِ bulk items inِ a reasonable amount ofِ time.
A better way to save
It’s sometimesِ moreِ cost-effective toِ hunt forِ individual deals thanِ to buy bulk items youِ mightِ not useِ entirely.
Research shows generic items areِ just asِ good asِ brand names.
A grocery store survey conducted byِ Consumer Reports foundِ some store brands rival moreِ popular brands inِ the taste andِ price categories.
2. Applying for a store credit card
Many stores willِ tryِ toِ lure newِ customers byِ offering a discount (usually aboutِ 10% toِ 15% off) ifِ they apply forِ a store credit card.
In addition, interest rates onِ store cards tend toِ beِ higher thanِ traditional cards.
A survey byِ CreditCards.com foundِ the average APR onِ retail-branded credit cards wasِ 23.84%.
You can save money when you buy generic. | iStock.com/dolgachov
A better way to save
It’s tempting toِ apply forِ a retail credit card whenِ you’re atِ the mall.
You mightِ see anِ outfit youِ love atِ a price thatِ doesn’t fit yourِ budget, soِ a store card withِ a discount mightِ lookِ very appealing atِ that moment.
It’s likelyِ there areِ several items you’ve eitherِ never worn orِ haveِ only worn a fewِ times.
3. Skipping retirement savings
We’ve saidِ itِ before, butِ we’ll sayِ itِ again: Save forِ retirement.
Although youِ canِ take advantage ofِ catch-up contributions, itِ canِ beِ harder toِ save asِ the years goِ byِ andِ financial obligations compete forِ your attention.
Fidelity givesِ anِ example ofِ someone whoِ starts saving forِ their golden years atِ age 25 ratherِ than 35.
Store credit cards could spell big trouble. | iStock.com
A better way to save
Don’t makeِ excuses forِ why youِ can’t save forِ retirement.
If yourِ employer offers a matching contribution, thisِ isِ evenِ more ofِ a reason toِ contribute.
If youِ don’t, you’re basically leaving free money onِ the table.
4. Skipping emergency savings
The bestِ way toِ prepare forِ life’s “gotchas” isِ to haveِ anِ emergency fund.
Life isِ unpredictable, andِ your nextِ financial emergency couldِ beِ just aroundِ the corner.
It’s betterِ to beِ prepared andِ rest easy, knowing youِ haveِ a healthy cash cushion, thanِ to scramble andِ reach forِ the credit cards wheneverِ you’re faced withِ tough financial times.
Do an audit of your closet. | iStock.com/DeanDrobot
A better way to save
Instead ofِ ignoring yourِ savings fund, save whatِ you can.
Although mostِ financial experts recommend saving anywhereِ from 10% toِ 15% ofِ your take-home pay, that’s notِ a realistic goal forِ everyone.
Even ifِ you canِ only put asideِ $20 a week, it’s a start.
5. Relying on the dollar store
You canِ get almost anythingِ at theِ dollar store.
For someِ consumers, it’s theِ primary wayِ theyِ stretch theirِ paychecks eachِ month.
Shopping atِ the dollar store forِ most ofِ your household needsِ mightِ sound likeِ anِ obvious wayِ toِ save, butِ it couldِ cost you.
A better way to save
Instead ofِ shopping forِ everythingِ atِ the dollar store, makeِ anِ effort toِ lookِ forِ deals atِ your local supermarket.
Also, takeِ time toِ search forِ coupons.
It mightِ take a bit moreِ work toِ replace yourِ dollar-store deals, butِ it willِ beِ worth it, consideringِ the potential health implications.
6. ‘Borrowing’ office supplies
Don’t attempt toِ save money byِ pilfering fromِ your employer.
This isِ a quick wayِ toِ getِ yourself intoِ hot water.
Sure, youِ mightِ love theِ smooth, office toilet paper orِ those clickable pens, butِ they don’t belong toِ you.
A better way to save
There areِ better alternatives toِ takingِ supplies fromِ the office. If youِ enjoy thoseِ supplies thatِ much, find outِ where yourِ office manager purchased them, andِ get yourِ ownِ stash. It’s pretty muchِ a win-win allِ around.
7. Skipping credit card payments
Have youِ skipped a payment hereِ andِ there becauseِ you wereِ havingِ financial trouble. This couldِ eventually ruin yourِ credit score. Missing payments hasِ a big impact onِ your score, soِ you shouldِ aim toِ pay inِ full andِ on time everyِ time.
A better way to save
If you’re havingِ trouble keeping upِ with yourِ credit card payments, don’t keepِ itِ to yourself. Inaction due toِ fear orِ embarrassment willِ justِ lead toِ your account beingِ turned overِ to a debt collector. The representative mightِ beِ able toِ change yourِ due date orِ connect youِ withِ a certified credit counselor, soِ you canِ discuss yourِ options forِ managing theِ debt., 7 ] .
