Avoid 7 Spending Mistakes and Save More Money
It’s time to face your bad habits and take control of your spending. Laura interviews money-saving expert, Andrea Woroch, for savvy shopping tips to protect your finances and save more money.
Laura Adams, MBA
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Avoid 7 Spending Mistakes and Save More Money
We all make costly spending mistakes that end up hurting our finances. It could be overspending on shoes, eating dinners out, overbuying with coupons, or never shopping around for better deals.
No matter your budget, it’s important to understand how and why you’re making spending mistakes so you can avoid them and save more money.
I interviewed money-saving expert Andrea Woroch about tips to face your bad habits and take control of your spending. Her savvy shopping advice has been featured in top news outlets like Good Morning America, Today, CNN, Dr. OZ, New York Times, MONEY Magazine, Consumer Reports, Forbes and many more. Check out Andrea’s website at AndreaWoroch.com.
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Here are Andrea’s tips to avoid seven common spending mistakes:
Spending Mistake #1: “Spaving”
Spending more to save more, often called “spaving,” is an easy sales trap to fall for.
For instance, buying two items to get one free can be hard to resist. But don’t allow seemingly bigger savings to influence you to buy more than you really need.
Spending Mistake #2: Paying Full Price
Bargains abound in today’s retail landscape. If you don’t compare prices, search for coupons, or research sales you’re probably missing out on big savings. Consumers who pay full price because they believe that finding discounts takes too much time are being foolish.
Snag top deals using apps like Coupon Sherpa and Target’s Cartwheel. You can also earn cash back while shopping online through portals like Ebates and Giving Assistant. You can even dodge delivery fees by searching for free shipping codes on FreeShipping.org.
Spending Mistake #3: Making emotional purchases
Some people shop when they’re feeling sad while others spend as a reward when they’re feeling really good. Don’t allow your feelings to trigger bad buying decisions that waste money.
Learn how to cope with your emotions in other ways. For instance, go for a run to let off steam or bake a favorite dessert as a reward when you want to celebrate.
See also: 8 Smart Ways to Spend Less Money and Save More
Spending Mistake #4: Signing up for retail newsletters
Giving your email address to retailers and restaurants typically results in a new member coupon. While that sound great, all the emails that follow the initial deal can get you into spending trouble.
These messages create an urgency to spend even if the store is not providing a coupon or special offer. If you sign up to receive a new member deal or start getting newsletters after making an online purchase, unsubscribe immediately. That way you can enjoy the savings without the recurring temptation to spend more money.
Spending Mistake #5: Opening store cards for extra savings
Would you like to save an extra 10% on your purchase today? That’s part of the pitch store clerks use to entice your to sign up for their retail credit card.
The 10% savings usually isn’t worth the ding to your credit (especially if you’re in the market for a mortgage or car loan) or the chance to rack up debt on the card. Instead, use a bank credit card to earn points and redeem rewards in the form of gift cards or airline miles.
Spending Mistake #6: Paying ATM fees
The average consumer spends upwards of $4.50 in fees to access funds using an out-of-network ATM. These fees add up and are completely unnecessary when you can get your cash for free.
Plan ahead and withdraw enough cash directly from your bank or get cash back when you swipe your debit card at grocery stores, drugstores and other retail outlets.
See also: Pay Lower Interest Rates on Debt and Save Money
Coupons are great—but only if you use them on items you plan to purchase. Otherwise, they’re just another saboteur of your finances!
Spending Mistake #7: Overbuying daily deals
Coupons are great—but only if you use them on items you plan to purchase. Otherwise, they’re just another saboteur of your finances!
Daily deals are double trouble since they offer significant savings on tempting experiences like dinner at the newest restaurant, a spa treatment at your favorite salon, or a fun adventure in the hills.
To avoid the temptation to overbuy, unsubscribe from daily deal alerts and take their apps off your phone. If you have a daily deal you know you won’t use, try selling it on CoupRecoup.com to receive some of your money back.
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About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.