You can get tips on how to save from so many different types of people. You should make sure you listen to the right people. Some of the savings tips are simply myths passed down generation to generation, while there is also recently invented money saving strategies. But do these tips really work?
Here are some of the most popular money saving myths, and how it can actually help:
Carry cash over credit card
People may tell you to always have cash around with you so that you will not overspend. However, with a credit card, you can actually track where your money is going and help you improve your budget finance. Using credit cards also give you perks and other cash incentives.
Buy in bulk
Buying in bulk straight from a factory store or buying from special discounted bulk deals from the grocery store can help you save. However, the downside is you might buy in bulk things you don’t use often or items that spoil quickly. Make sure you buy in bulk the things you always use.
Buying the cheaper item
Financial guru, the late Jim Rohn, said when you are deciding between two prices, choose the bigger amount, because if you choose the cheaper purchase, you will lead a cheaper life. When you buy a cheaper price, you may be paying more in the long run, because the item or the food will have low quality. This means, it could be bad for your health. Buying the more expensive purchase is a long-term investment.
You can only save money if you have earned enough
This is a big misconception. Saving is a choice, whether you earn big or not. Make sacrifices and be disciplined enough to save a portion of your income no matter how small it is. Your savings will later on be the money you will use for your investments to earn more.