SmartyPig

Saving money has become all the more important after the economic meltdown. Everyone seems to agree that it is the most essential part of one’s financial life. However, the huge number of Americans falling into debt and resorting to credit card debt consolidation leaves little doubt that we still have a long way to go to become wise with our money management skills. We need to understand that just realizing the importance of saving money without practically implementing it in our lives is not going to take care of our financial problems.

So, if you are serious about saving money, then it is necessary to bust some money saving myths which you ‘think’ are sound. The following are some myths that you should be aware of to become more dexterous with your money saving skills:

1)    Bulk buying always saves you money: It is true that unit price of bulk buys will always be cheaper. But the temptation of saving a huge amount with bulk buys usually lures one to purchase more than what is required. If you ultimately do not use what you purchase, then where is the saving?

2)    Running air conditioner in your car wastes gas: Keeping your car’s windows open for ventilation instead of using the AC can cost you more. Opening windows actually increases the drag which boosts gas consumption. So, next time when you use AC to make yourself comfortable, do not feel guilty!

3)    Sales shopping helps to save money: You never fancied buying gadgets and gizmos. Now there is a sale going on and you can’t wait to buy one. The point is that if sales tempt you to purchase something that you would not have spent on otherwise then you are just inviting unnecessary expenditure.

4)    You get what you pay for: Though this might be true in some cases, higher prices do not always guarantee higher quality. For example, generic drugs are medically considered to be as effective as their brand-name counterparts.

5)    Hand washing dishes saves more money than a dishwasher: Washing dishes with hands typically uses a lot of water. Go for an efficient dishwasher and it can help you save by minimizing water consumption

6)    Lowering your standard of living saves money: If you deprive yourself and lower your standard of living to save more money, there would hardly be any motivation to continue with your savings. Be creative and come up with innovative ways to make more money. Setting up a passive source of income, affiliate marketing or freelance writing are just some of the good ways to give a boost to your savings.

7)    Saving money depends on how much you earn: Regardless of what your income is, set aside a certain amount of money every month for your savings account. It is wrong to think that you cannot save because of low income. A good idea is to set up an automatic transfer of a fixed sum of money from your checking to savings account every month.

SmartyPig Guest Post by Jack Reed