Your money-making expert. Financial journalist, TV and radio personality.
You know what it’s like when you’re trying to do smart spending, saving money here and there, but you find that some of your decisions have meant you’ve made false economies?
Maybe you’ve gone for a cheap iron and found that it just didn’t do the job properly. Or you bought a cheap air ticket and then had to spend extra to check your bag in. Or you keep getting your car mended to the point where you’re throwing good money after bad?
Sainsbury’s Bank Credit Cards have researched this phenomenon and found that we’re all guilty of it, but that there are ways we can spend smarter when we give ourselves a few rules. Here’s how!
We would all like to think that we’re smart spenders in the UK, but according to research by Sainsbury’s Bank Credit Cards, it’s a bit of a mixed picture.
For a start, 32% of us admit we have bought a lower quality item and then regretted not paying extra for one that would last longer.
There are lots of ways we are losing money when we think we’re being clever!
We all do it so no point beating yourself up about it. However, it’s worth stopping and thinking every now and then about which useful mistakes we can learn from 🙂
Here are the top ten ways that Sainsbury’s Bank found we are wasting money when we think we’re being clever:
Yes, we all do it. We think we’re being clever by buying cheaper, or doing something ourselves when, actually, paying someone to do it properly or going for a more expensive but better value item or service would have saved us money in the long-run!
So you need to buy a big ticket item urgently, but you need to save money. What do you do?
There are a few possibilities:
Of course, we have LOADS of ways to help you be a savvy spender on MoneyMagpie.com! Here are a few of them to save you money NOW…
Right now, 67% of us are planning to buy a big ticket item soon. This could be a car, a boiler, a new sofa or even a family holiday.
Check out our article on How to Save on Almost Anything (there’s a challenge!) to find out clever ways to spend.
Also, you can download our free eBook on 101 Tips to Save in the Home here. It has all kinds of clever money-saving ideas!
For a start, you can cut down on your heating bills with help from this article on keeping your home warm for cheap. It includes information on how to switch to the cheapest, fixed-price energy deals as well. You can find them here.
Also, we’ve got 50 ways to save in your home here – what more could you want!
Home insurance, car insurance, travel insurance and other insurances are all cheaper if you can manage to pay the premiums annually rather than monthly.
There are loads of genuine ways to save on your travel costs. In fact we have a FREE eBook on how to save on holiday. Download it here.
Also, travel insurance is remarkably cheap compared to the amount insurers pay out on medical costs each year. Se how cheap you can get it here.
Also, even if you have medical conditions or you’re over retirement age, there are surprisingly good deals in travel insurance now, as you can see in this article.
Talk about a big-ticket item!
Here are ideas for buying a car at auction. It is possible to get a really good deal there but you need to know what you’re doing. We also have ideas here on how to get the best deal when buying a second hand car.
And don’t forget to get the best rate for your car insurance. Here are tips including the fact that it really isn’t worth lying on the form. If you come to claim on your insurance you could end up getting nothing if they find you haven’t been entirely honest about your situation!
Now, as you know, we are big fans of making do and mending. Recycling things, updating them, mending rather than buying new is often a good way to save money and help the planet! We have all sorts of ideas on how to do this as part of our Clear Your Clutter Campaign here.
However, there are definitely times when mending things over and over can be throwing good money after bad.
Sainsbury’s Bank Credit Cards found that UK adults often pay for costly repairs to fix old or broken items, spending more money in the long run than if they bought an item upfront:
Of course, sometimes it is cheaper to fix them – particularly if they are under warranty – but fixing is often throwing good money after bad.