We all think we do the best we can when it comes to our finances. We think we are saving money, but we never sit down and do math. You may be surprised if you do.
Here are the top five money-saving myths that fall for:
1. Sales shopping saves money
I used to be a shopaholic, but drug sales are my choice. To say that does not always save money. Yes, if you really need the item, then you're saving money. But sales often leads to purchase of items which normally would not be purchased. And you usually buy twice as much because it is on sale. So you have not saved any money.
It goes the other way around too. If your debt is less than the interest rate on your savings, your money works better savings. But with today's interest rates are so low, your debt is probably higher than the amount of interest earned on your savings account. This means that they are actually losing money.
2. Refinancing your home pays off
No matter what you do, you can save money. You just need to spend less than you make. If you can spend more money and more money, you are not saving anything. In fact, you may even be spending more. Do not wait until you have more money to start saving. You must start now.
Then if you never use the item that you are actually losing money. This may apply to the transaction of shopping and shopping in bulk. It does not matter whether you bought your daughter 35 pairs of shoes a garage sale for $ 1 each. If she had only two pairs of them, I just lost $ 33.
3. Refinancing your home pays off
When you refinance your home, you surely are not saving that much money in the long term. Yes, your monthly payments are lower, but you refinanced for another 30-year term. This means that if you have already paid 10 years of the mortgage, then refinance for a further 30 have essentially extended its credit to 40-year mortgage. Sit and do math and you'll see if they are really saving anything.
It goes the other way around too. If your debt is less than the interest rate on your savings, your money works better savings. But with today's interest rates are so low, your debt is probably higher than the amount of interest earned on your savings account. This means that they are actually losing money.
4. Zero percent interest rate saves money
When you take the card with zero percent repayment term, you're saving money. You are only delaying payments for items. You can not save and not spend more. But if you do not pay the money back within the zero percent period, will pay interest on those items. This will cost you money.
5. Savings depend on income
No matter what you do, you can save money. You just need to spend less than you make. If you can spend more money and more money, you are not saving anything. In fact, you may even be spending more. Do not wait until you have more money to start saving. You must start now.
Here are the top five money-saving myths that fall for:
1. Sales shopping saves money
I used to be a shopaholic, but drug sales are my choice. To say that does not always save money. Yes, if you really need the item, then you're saving money. But sales often leads to purchase of items which normally would not be purchased. And you usually buy twice as much because it is on sale. So you have not saved any money.
It goes the other way around too. If your debt is less than the interest rate on your savings, your money works better savings. But with today's interest rates are so low, your debt is probably higher than the amount of interest earned on your savings account. This means that they are actually losing money.
2. Refinancing your home pays off
No matter what you do, you can save money. You just need to spend less than you make. If you can spend more money and more money, you are not saving anything. In fact, you may even be spending more. Do not wait until you have more money to start saving. You must start now.
Then if you never use the item that you are actually losing money. This may apply to the transaction of shopping and shopping in bulk. It does not matter whether you bought your daughter 35 pairs of shoes a garage sale for $ 1 each. If she had only two pairs of them, I just lost $ 33.
3. Refinancing your home pays off
When you refinance your home, you surely are not saving that much money in the long term. Yes, your monthly payments are lower, but you refinanced for another 30-year term. This means that if you have already paid 10 years of the mortgage, then refinance for a further 30 have essentially extended its credit to 40-year mortgage. Sit and do math and you'll see if they are really saving anything.
It goes the other way around too. If your debt is less than the interest rate on your savings, your money works better savings. But with today's interest rates are so low, your debt is probably higher than the amount of interest earned on your savings account. This means that they are actually losing money.
4. Zero percent interest rate saves money
When you take the card with zero percent repayment term, you're saving money. You are only delaying payments for items. You can not save and not spend more. But if you do not pay the money back within the zero percent period, will pay interest on those items. This will cost you money.
5. Savings depend on income
No matter what you do, you can save money. You just need to spend less than you make. If you can spend more money and more money, you are not saving anything. In fact, you may even be spending more. Do not wait until you have more money to start saving. You must start now.
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