Stay out of the bargain trap

Beware false economies: what looks like a money-saving deal could cost you more in the long run

Bagging a ‘bargain’ in the sales

How many of us have headed off to the sales looking for one thing and come back with something entirely different? More than half of us admit to impulse buying at sales, spending more than £100 on items we don’t need, won’t use or never wear. Don’t fall into the trap of buying stuff just because it’s ‘cheap’: if you don’t need it then it’s a waste of money. Go with a clear idea of what you want; and remember that many shops, including furniture and bathroom stores, offer ‘year-round’ sales where they rotate the sale bargains, so if you don’t buy now you won’t necessarily miss out.

Buying cheap travel insurance

Never buy a policy based solely on the price. Look at the level of cover you’re getting for your money. In some cases, especially with cheaper policies, you may be covered for little more than medical expenses, whereas more comprehensive policies are likely to include cover for possessions and delays. A dirt-cheap policy may also have a high excess (the sum you’ll need to stump up if you make a claim). This could amount to the same as forking out for the full cost of any loss or damage yourself. Always shop around. If you don’t, you could end up paying more for a two-week policy from a high-street travel agent than for annual cover elsewhere.

Spending online if you tend to be a fickle shopper

Shopping online can save you time and money, particularly if you price match using online comparison sites. But don’t forget that delivery charges can bump up your final shopping bill and if you’re constantly returning items because they don’t fit or you’ve changed your mind, then you could be left out of pocket.

If you buy something online and it’s faulty you’ll get a full refund, including any costs incurred in sending it back. But if it’s simply a case of changing your mind, although you should get a refund providing that you return the goods within seven days, you could be liable for the return postage. So check the terms and conditions before making that final mouse click!

Holding on to savings and taking out a loan for a new kitchen or car

It’s great that you’re putting something away to save, but if you’re paying off a loan while you have savings sitting in the bank, then any interest you earn on your savings is likely to be wiped out by the interest you’re being charged on your loan repayments. Obviously, it doesn’t make sense to wipe out your savings totally; everyone needs some cash to fall back on, say if your car breaks down and needs expensive repairs. But it’s best to avoid taking out a loan if you have the money to pay upfront.

Giving in to ‘buy one, get one free’

Supermarket aisles are packed with these offers, they’re a ploy to get you to spend more. If there’s a deal on a product you need then that’s great, but in most cases we’re tempted into buying just because we can get the second item for free. But if you won’t use it before it goes off, or you’re being persuaded to buy a brand that’s more expensive than your usual one, is it really such a good deal? It might be worth buying if you’re getting a store cupboard staple or you can freeze it. But if buying one gooey chocolate cake means you get another for ‘free’ and you end up eating both, that ‘BOGOF’ could be bad for your pocket and your waistline!

Not making a shopping list before hitting the supermarket

Doing the weekly shop without a list can mean you spend more, with as much as 50 per cent of what we pop in our trolley down to impulse buying. With the average family household throwing away about £680 of uneaten food every year, working out what you need to buy before you shop means you’ll save money and won’t end up with a heap of stuff that’s likely to go off before you get around to using it.

If your willpower is weak, that’s when you’ll give in to temptation, so it’s hardly surprising that the worst time to shop is when you’re hungry. Dashing around the supermarket in your lunch hour may mean that you spend more, as you’re likely to stock up on snacks and junk food rather than essentials. Instead, give online shopping a go. While you could pay up to £6 to have it delivered, you’re far less likely to randomly pick up as many ‘extras’ as you would trawling the aisles.

Making a special journey to the recycling tip

If you’re doing a five-mile trip to the tip on a Saturday morning to drop off your bottles, boxes and newspapers, believing that you’re doing a good deed for the planet, then you are wrong. You’re wasting time and money on petrol and damaging the environment. And don’t pile all your recycling boxes into the boot then drive around all week because they will weigh down your car, making it work harder and use more petrol.

If your council doesn’t offer a kerbside collection service, simply wait until you are going in the direction of the tip for some other reason to drop off those recyclables.

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