When it comes to New Year’s resolutions, saving money is near the top of the list, right behind losing weight. However, when the next New Year’s Eve rolls around, many would-be savers haven’t managed to save, not because of a lack of trying, but because they are unrealistic in their initial goals. From obsessive couponing to scrimping on auto insurance, below are several common obstacles that derail the plans of many aspiring savers.
1. Becoming Obsessed with Coupons
Looking for deals is an essential step to saving money. The first step is to open a checking account. However, if you find yourself spending hours poring over coupons (hey, it happens to the best of us), you might want to ask yourself what real benefit you’re gaining from your efforts. In addition to the massive amounts of time spent, coupon hunting can end up actually costing you more in the long run. Why? The answer lies in human psychology. The prospect of scoring a bargain can actually lead shoppers to purchase more of an item, or worse, seek out items they won’t even end up using.
How to resist the temptation? Personal finance experts suggest making a list before you begin looking at coupons—and only clipping deals for items from your list.
2. Scrimping on Insurance
If you’re considering raising your insurance deductibles or getting the minimum coverage possible in order to save money, be aware that this is a dangerous road. One requirement for successful savings is being able to cover large, unanticipated expenses; if you don’t, you’re only one emergency away from depleting your savings. If you bypass dental insurance, what happens when you need to have a root canal? You’re out several thousand dollars out of pocket. And if you decide to scrimp on auto insurance? You may find yourself covering thousands of dollars of repairs that would otherwise have been covered.
A better bet for insurance is to seek as much coverage as possible at the most affordable price. For more options, contact a Kannapolis insurance agency to find out the best deals in the area.
3. Succumbing to the ‘Click and Save’ Mentality
Online shopping can be a lifesaver. Instead of schlepping to the store every time you need a new pair of shoes, you can have a pair of Jimmy Choos shipped right to your door. However, the very ease of online shopping makes it a potential danger. When you are bombarded with emails for once-in-a-lifetime sales, you can find yourself quickly in the red again. While you can get fantastic deals from online couponing and rebate sites, only use these to purchase items you really need. Otherwise, you can find yourself contributing to companies’ bottom lines rather than your own.
Saving is Within Your Reach
Let’s face it. Saving is hard. But if you’ve made a plan, you’ve already positioned yourself for success. As with any long-term goal, there are going to be initial setbacks and speed bumps. By following these easy tips, you can avoid some of the mistakes that befall other savers and put yourself on the road to financial success.