Money saving tips!!!

(…That are not money saving tips) :(


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Him: Excuse me sir!!

Me: Yes?

Him: Boy, do I have a DEAL for you! It’s your lucky day. You pay me $115 dollars for this thing that you don’t really need that is actually worth $100. (Shut up and follow me) I will then give you TEN DOLLARS BACK for being such a good little boy! You earned it. You will save TEN DOLLARS! BOOM, you are ahead of the game! Smart and sexy too.

Me: What happens to the other $5?

Him: I’m going to keep that too.

Me: Who’s lucky day did you say this was?


Follow this trail of money saving tips, follow them right off the financial cliff.


We pay your tag, title, and tax:

Really!? Wait, with whose money?

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Build credit, by going into debt, by buying things you don’t need, so you can go into more debt later, to buy more stuff you don’t need:

Self-explanatory.


No down payment!

Again, self-explanatory. (I hope.)


Cash back:

How people fall for this bait and switch is beyond all creation.

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Oh, and… the person who is drowning in credit card debt, paying 19% interest, helping to pay for your “free” trip…. they wanted to make sure you send them a post card. (Maybe we can put the post card and the bill in the same envelope, you know, connect the dots.)

Do we really think credit card companies are just nice people, give away free money? (Spend money, get “rewarded”, take a “free” trip, spend more money. Repeat. Where is the savings again? Show it to me.)


Save money by buying cheap food:

Buying cheap (unhealthy) food instead of healthy “expensive” food does not save you money. Are you saving the cost difference between the cheap food and more expensive food? Really? Show it to me.

Cheap food is only less expensive in comparison to healthier more expensive foods. Healthy foods are not actually more expensive than they should be.

If you think you cannot afford healthy foods now, how will you afford the medical bills later? (The bills that are literally caused by eating unhealthy food.)

Healthier foods might (might, not always) cost more than unhealthy foods (again, only in comparison), but is that a GOOD reason to choose the unhealthy food?

“Well, it was more expensive for the healthier option and I do not value being healthy that much.”

“What do I do with the money I save from buying cheaper, unhealthy food you ask? I buy stock in companies like McDonalds, Pepsi, and Walmart uh, I mean…. I spend it on other things.”

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http://ajcn.nutrition.org/content/82/1/265S/F1.expansion.html

http://ajcn.nutrition.org/content/82/1/265S.full

http://www.cdph.ca.gov/healthinfo/healthyliving/nutrition/Documents/CostofObesityToplineReport.pdf


Couponing:

More of a hobby than a money saving activity. Although it is working quite well for some…

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http://www.examiner.com/article/why-extreme-couponing-doesn-t-work-for-most-people

http://finance.yahoo.com/news/first-person-why-couponing-doesnt-160200597.html

http://business.time.com/2012/11/05/former-extreme-couponer-admits-its-a-waste-of-time/


Keeping a mortgage for the tax break/ lose your interest deduction:

Anyone want to take this one?


Buying stuff on sale:

(Inspired by my sexy buddy, J.Money)

Because it’s a good deal vs because you need it (yay – it’s 50% off! But now I’ve spent $30!) What?

Just because you got a great deal on a purchase doesn’t mean you are further AHEAD, it means you aren’t as BEHIND as you could be. This falls under the “I was going to buy it anyway” category.

I was going to buy a boat anyway… it was on sale… now I am ahead hundreds.

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Hiring someone to do work for you:

(Also inspired by J.)

Mow my lawn, fix my plumbing, clean my house, do my laundry.

Hiring out chores to ‘get ahead’ because you earn more per hour than the hourly rate you are paying for the service, except you don’t get paid for that hour you just swapped.

Show me where more money is hitting your bank account as a result of hiring out your chores. Show me!

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Tax Free Weekend!

Let me get this right… We are buying stuff we don’t need because it’s tax free? (Saving an average of 5% off the purchase.)

But we aren’t waiting until one of the millions of 25%-50% off sales? (Putting you “ahead” 20-45%)

Makes sense to me.

If you can only afford the item on a tax free weekend, you can’t afford the item.

(Slack given to parents purchasing back to school supplies.) — (Waiting for end of season 50% off sale still applies.)

http://thestc.com/strates.stm


Bank Savings Account:

This is an easy one.

Bank savings interest rate = LESS THAN ONE PERCENT

Inflation = Average of three percent

With a ‘savings’ account, you are already losing 2%

They win, you lose.

BTW: Vanguard index 500 average return since inception, you ask? = 10.91%

https://personal.vanguard.com/us/funds/snapshot?FundId=0040&FundIntExt=INT#tab=1

http://www.usinflationcalculator.com/inflation/current-inflation-rates/

http://www.nerdwallet.com/blog/banking/nerdwallets-top-high-yield-online-savings-accounts/

https://www.nerdwallet.com/rates/savings-account


Student loan consolidation:

“So I have more money each month.”

Sorry, you don’t have more money each month. Show it to me, where is the extra money?

What is most likely happening is you are paying a smaller amount each month, for a MUCH longer period of time and will end up paying more, much, much, more.

 

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http://www.investopedia.com/articles/younginvestors/09/consolidate-student-loans.asp

http://mylifeiguess.com/money/2013/its-going-to-take-me-100-years-to-pay-off-my-student-loan/

http://www.sanfranbkblog.com/why-should-get-student-loans-out-of-default/


These are not money saving tips, not a single one.

These are money SPENDING tips.


Just follow the money, if the money goes from your pocket into their hands, it’s not a money saving tip, it’s a money spending tip.

What are your favorite money “saving” tips?


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  • John Francis

    I always think buy 2 get 1 free is a bad deal, because I tend to waste things I have copious amounts of. Not to mention spending twice what I needed to spend, and the extra storage cost.

    • Derek C. Olsen

      Love it, great one.

      (At the grocery store) — Some people don’t realize that you do not have to actually purchase two in order to get the deal.

      If you only purchase one item that is advertised 2/$5, you still get it at $2.50.

      Another example of a money spending tip, not a money saving tip.

      Thanks John!

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