NewsMorning NewsDon't Waste Your Money


Money saving myths that cost you in the end

Posted at 7:50 AM, Jul 24, 2014
and last updated 2014-07-24 07:50:53-04

We all like to save money when we shop, eat, travel and even fill up our car. But sometimes those attempts to save a few dollars end up backfiring.

We went out in search of nine of the biggest money saving myths that could cost you more in the long run.

Ask any shopper if they have ever done a dumb thing to save money. If they're honest, they'll tell you. "Sure!"

You know what we're talking about: Buying cheap shoes to save money. But Kim White said "they fall apart so soon, and I have to get new ones."

Lauren Howard says a dumb purchase she made was purchasing knock-off rings, bracelets and earrings. "And then my fingers turned green and I said why did I do that," Howard said.

Julie Poynter says her dumb money move was buying no-name cola drinks. "I tried off-brand soft drinks, and they are not as good and not worth it."

And then there's generic laundry detergent, something Poynter bought in an attempt to save on laundry costs. "I use Tide most of the time," she said. "And I tried to save money. And nope, it didn't work."

Buying too cheap -- and later regretting it -- is the No. 1 money saving mistake that most people make, according to consumer finance expert and C.P.A. Crystal Faulkner.

She listed a number of other money saving myths:

Store credit card for a discount

"You go into a store, they say open up a credit card, you get 20 percent off. But what many people don't realize is that can absolutely hurt your credit score," she said. In addition, you end up buying stuff you were not planning to buy once you have that card.

Shopping a sale because it's a Sale

Buying something simply because its on sale, such as bedding, or a dress, or a wall clock you never needed to begin with. "Many people buy more, even things they don't need, when it's on sale," Faulkner said.

Driving extra miles

While you are hunting those sales, another common money mistake is to drive extra miles just to use a coupon or to find cheaper gas. You burn up your gas and your time, spending 50 cents in gas to save 30 cents on that fill-up.

Buying in Bulk Too Often

This leads to buying in bulk at a warehouse store something you'll never use up. Toilet paper in bulk is great. Spinach, not so much. "It usually goes bad before you can use it," Faulkner said. "Just because you can get something in large quantities for a few dollars less, doesn't mean its a good idea."