Not everything you hear is true about your finances. More often than not, we find ourselves falling for the same proverbial myths that do more harm than good to our wallets. Stop the cycle by recognizing that these money-saving tactics are just myths.
Myth 1: Pay for Your Vacation After You Get Home.
Don’t fall for the myth that you will enjoy your vacation more if you ignore the imminent bill. There’s a psychological reason to pay ahead of time. Psychologists have found research that suggests that you’ll enjoy your vacation more if you aren’t sitting on the beach thinking about what a huge bill you’ll be facing once you get home. We get more happiness from things—whether it’s chocolate, a new book, or even a vacation—we pay for, but don’t use instantly, than we do from goods we put on credit cards or deferred plans.
Myth 2: To Save Money, Shop Early
Black Friday is the official commencement to the holiday shopping season, with an immense number of deals available on everything from home décor to electronics. But if you hold out, you may find even greater discounts due to stores recently offering “12 Days of December” promotions. Considering the average person spends about $750 on holiday gifts, waiting until after Thanksgiving weekend could make your number much lower.
Myth 3: No Pain, No Gain
No pain, no gain may apply to many things, but saving money doesn’t have to be one of them. Locate the costs that you find necessary to your lifestyle, such as the daily splurge on Starbucks coffee to keep you alive during those weary work hours, and go with them. If you allocate your money towards things you enjoy and find value in, and save in other (less valuable) matters, your wallet and happiness will go further.
Myth 4: You’re Never Tricked by Price Tags
Ignore those price tags that appear to be less than it actually is, tricking you to pay more in the long run. For example, a $24.99 product is not $24 dollars, it is essentially $25. These prices make you to believe that you are getting more of a deal from playing with the “insignificant” matter of cents. So, pay attention to the last two digits of the price tag and you will never find yourself wondering how your end total got so high.