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Some money-saving strategies that can backfire

Sometimes your biggest enemy is yourself. That can be the case with savings. There are some savings strategies that seem like good ideas at first, but ultimately turn out to be the kind that backfire. Here are a few examples of money moves that you should avoid.

  • Buying by price. It might seem like a good idea to always buy the cheapest product, but in the long run, that can cost you. Of course brand names aren’t perfect, but instead of shopping on price alone, you should do some homework and shop based on value. Perhaps you’re buying a bike. Well, you can certainly find one for cheap on sites like Craigslist. However, that bike might break a year from now. As US News reports, instead of scooping up the cheapest option, do some research on bikes first. Then consider the most-highly rated one within your budget. There’s a good chance that a $300, well-reviewed bike will last much longer than a random, $50 bike.
  • Leasing a car. Leasing a car is often less expensive than buying a car. However, that’s not always the case, thanks to vague leasing language and fine print. If you’re considering a lease, make sure you read the fine print. Companies often charge you for extra miles and place odd guidelines around how much wear and tear the vehicle can incur. If you’re not careful, these fees can end up costing you plenty.
  • Using Rewards Cards. A rewards credit card is sometimes a good idea. They can come with benefits like cash back and travel perks. However, think about how you get those benefits. That’s right, by using the card. Research the card you apply for thoroughly and make sure things like its annual fee and interest rate are worth it. Ask yourself if you will you use the card enough to not only gain the points to make it worthwhile, but also stay within your budget.
  • Chris O'Shea

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