5 money-saving “tricks” that can cost you more in the long run

words Al Woods

Everyone likes to think that they have their own little clever tricks when it comes to saving money. And sure, sometimes there are viable strategies that can be applied with great results.

But more often than not, when you hear of a scheme like that, you should automatically be wary. For one thing, if those tricks really worked, you should question why the person would be sharing them with you in the first place. But even then, nothing can stay a secret forever nowadays. So, you can assume that anything you hear about in this regard is nothing new under the sun.

money-saving tricks

1)      Cheap Insurance

It’s not rare to hear great promises about how much you could save on your various types of insurance by just following that one trick. And sure, in many cases, it’s possible to reduce how much you’re spending on insurance every month. But this often comes at a cost, one that many people underestimate. As soon as you run into a problem that would require a fancier insurance policy, you’re out of luck. Not only that, but you’ll also likely have to deal with higher installments in the future because of that incident. The point is, if you’re given a good offer for a comprehensive insurance policy that costs a bit more than the average, it’s probably not a bad idea to take it.

money saving tips

2)      Basic Home Security

People often underestimate the importance of a good home security system until it’s too late. But at that point, spending a lot of money on a good system is questionable at best, since you’re not very likely to get hit again anytime soon. The point is that you should be prepared before the incident even happens in the first place. And this happens by exploring the market for home security systems, and picking a good, reliable one with a proven track record. It will likely cost you a bit extra, but that peace of mind you’ll get from the purchase is invaluable.

3)      Tax Loopholes

When it comes to filing taxes, everyone suddenly becomes a genius. From counting personal trips and expenses, to outright lying about income, you can probably assume that the IRS has seen it all. And even if you know someone who’s been getting away with cheating on their taxes for years, that’s just because they haven’t been properly audited yet. Which will likely happen sooner or later – it only takes one mishap. Don’t try to get clever with the authorities, and submit your tax return exactly as it should be. If there is anything you can do to reduce your taxes legally, a good CPA is the only way to know that for sure.

money-saving tricks

4)      DIY Repairs

With the number of educational and DIY videos on platforms like YouTube these days, it’s easy for the average Joe to turn into a skilled repairman in various fields. But there are certain kinds of repairs that you should leave in the hands of professionals. Failing to do so can cost you a lot of money, or it can be downright dangerous. Going back to YouTube, it can also be a great platform for educating yourself on the dangers of failed repairs. Look up incidents with car radiators or garage door springs and you’ll see what we’re talking about.

5)      Irresponsible Borrowing

A loan can be a good solution to short-term financial issues when used responsibly. But the lending industry can also be a bit predatory when they sense that you’re weak with handling your money. There’s no shortage of people who’ve gotten themselves in deep trouble as a result of failing to borrow responsibly. Taking out one loan to cover something urgent is fine – just don’t treat it as a source of “free money” that you can worry about repaying later. That’s the fast track to financial ruin, especially with services like payday loans and other short-term options.

In general, the old saying “if it sounds too good to be true, it probably is” should be your main motto when it comes to financial matters in your life. There are many ways to make your situation much more difficult just because you were trying to cut corners in the wrong places with your finances. And sometimes, these problems can take much longer to resolve than they did to create initially. Needless to say, be careful and always evaluate the potential repercussions of everything you are about to do with your money with a critical attitude.

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