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Unpuzzle Finance > Personal Finance > 7 ‘Money-Saving’ Moves That Cost You in the Long Run


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Saving money is definitely a great thing. It can make you become more disciplined with how you spend which, in return, can bring you a good amount of money by the end of the year you can spend on everything you love, right?

Sure, saving money is indeed an amazing thing everybody should get accustomed to, but there are times when your ‘money-saving’ attempts can actually backfire and leave you with less money than you previously projected.

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You might wonder how can that be possible? Well, the logic is very simple. You believe you are saving your money, when in fact you’re only doing so in a short-term. But when you look at the whole picture, in the long run, you realize that with some moves you might not be saving at all. On the contrary! The expenses can only get bigger.

So let’s crack down these money-saving schemes that make us lose our money in the long-term shot. Follow these tips and thanks us later!

1. Saving money up front, paying on the back end

You intended to buy the cartridge refill, instead, you found yourself browsing for the bargain-priced printer! If you’ve fallen for this trap, you’re not alone.

The printer companies sell much more thanks to the belief that replacement ink cartridges are too expensive. These companies actually want you to think that way because by doing your simple maths, it turns out that buying an entirely new printer is actually much more convenient than buying cartridges only, right?
Wrong! You will pay for both products (the cartridges and the printer) instead of buying the one you initially needed. This is a simple, psychological game a lot of industries like to play with us, but don’t fall for it!

2. Purchasing a house to ‘save’ on rent

There’s a common belief that it is far more convenient to purchase a house so you don’t spend money on rent. Let’s overthink this statement a couple of times, shall we?

Does it make sense? If you’re planning to live in the house for a longer period of time, then sure it does! If you’re not really sure where you want to live in the next 10 years, then it’s a definite no.

Not only it won’t be a good deal for you if you intend to change your place of living, but a house can quickly become a bottomless pit. Have you thought about all the expenses a house requires? Insurance, repairs, taxes, etc. etc.?

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Exactly, the financial burden of a house can be quite heavy if you’re not already rich. Plus, researches have shown that if you plan to get rich, rent is a better way to go!

3. Using a 401k loan to ‘save’ on interest costs

Some employers allow their employees to use funds of their 401(k) account earlier in order to pay for sudden expenses. The employee takes the amount needed as a loan, and then pays interest back to himself in order to avoid paying the interest costs he would have to pay to a traditional lender.

Giving back the lent money to yourself might seem like a good way of saving money, but it’s not.

It is much better to build an emergency fund you could turn to in times of crisis than to take your 401(k) funds. By doing so, you might completely deplete your retirement account and destroy your years-long saving plans.

4. Shopping at Warehouse Clubs

Shopping at warehouse clubs might be a perfect way to save some money and to cut costs. This is especially true if you have a large household, but are the warehouse clubs really saving your money?

What a lot of people forgets is that there are some other factors that might be making your saving impossible. For example annual membership fees.
Are you really buying that often in the warehouse so that the membership can pay off?

5. Bulk shopping

Buying in bulk can often be a great deal. However, sometimes it can also waste your money big time! Let’s think logically…

If you purchase 2 laundry detergents at the price of 1, that inevitably is a great deal. But if you buy 5 kilos of bananas just because they are incredibly cheap, it’s a waste of money. You probably won’t be able to eat all the bananas before they rot, so you’re practically paying for something that you’re never going to use.

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Other examples of mistakes when buying in bulk is impulsive buying. Just because something is a great deal, doesn’t mean you really need it. Or, It doesn’t mean you will be able to finish it before it goes bad.

6. Skipping doctor and dentist appointments

Ok, we all know that maintaining your health at peak comes at a certain price today. Even with health insurance, many people think twice before really scheduling that doctor’s appointment because of how expensive they are.

However, putting off your doctor or dental appointments in order to save some money might really backfire back to you quickly and lead you to spend much more than you ever planned.

If you skip your regular controls and checkups, small problems that could easily be solved might result in more serious health issues that will require professional health help. And you know what that means. Paying for the health care much more than you needed to 4 months ago.

7. Driving across town for a good deal

Ok, apart from paying for gas, driving might also include other potential costs such as parking fees or even repairs of accidental damages. So, next time you see there’s a great bargain across town you have to buy, better skip it.

Don’t waste your time and money on deals that aren’t worth it, rather, before getting into your car in order to find that bargain, rethink, sum up your additional costs and decide after it.

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