Don't Waste Your Money: Money-saving myths - News, Weather, Sports, Toledo, OH

Don't Waste Your Money: Top money-saving myths

(Toledo News Now) -

Did you ever cut corners on something to save money, but then end up paying even more in the long run? We all have!

Everyone likes to save money when shopping, eating, traveling and even filling up our gas tanks, but sometimes those attempts to save a few dollars end up backfiring. Examples include buying a cheaper pair of shoes, only to have them fall apart and then you need to buy another pair, or trying generic-brand laundry detergent that doesn't do the job of more expensive brands.

Buying too cheap and later regretting it is the number one money-saving mistake most people make, according to Consumer Finance Expert and CPA Crystal Faulkner. She says other money-saving myths include opening a store credit card just to get a discount that day.

"You go into a store, they say, ‘Open up a credit card, you get 20 percent off,'" Faulkner said. "But what many people don't realize is that it can absolutely hurt your credit score."

Another mistake: buying something simply because it's on sale.

"Many people buy more, even things they don't need, when it's on sale," Faulkner said.

That includes buying in bulk at a warehouse store. It may be something you'll never use up.

"It usually goes bad before you can use it," Faulkner said. "Just because you can get something in large quantities for a few dollars less doesn't mean it's a good idea."

Also, buying more online just to get free shipping, or driving a little further to use a coupon or find cheaper gas – you burn up your gas and your time!

When it comes to savings accounts, Faulkner says a common mistake is keeping too much money in a low-paying savings account, earning no interest. Another is dipping into your 401K to pay for a child's college tuition.

"You can finance a college education," Faulkner said. "You cannot finance retirement."

Buying an extended warranted for a small appliance or TV is another mistake: It's cheaper to just replace it if it breaks.

Don't get the wrong idea – thrifty shopping is smart shopping, if you are getting something at a great value, but too often the cheap stuff is just that: cheap stuff.

Keep these money-saving myths in mind so you don't waste your money.

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