Every day, we hear many myths about saving that, wrongly, lead us to believe that we are saving. Know the reality behind these beliefs.
Savings is a recurring theme these days and a necessity for everyone. But between theories, other people’s experiences and expert tips, it’s natural to get lost between what’s true and false. You savings myths can corrupt your goals, so it’s good to know them to avoid making mistakes.
Do you feel that instead of saving, you are spending more? No matter how hard you try, you never reach your savings goals? Perhaps you are doing what you believe to be good savings practices when, in fact, they are not. Review your steps by checking out these savings myths.
Top savings myths
Myths about saving are sometimes born from preconceived ideas, old knowledge and our weak will to fulfill this goal of saving.
We did a survey of misconceptions when we set out for this purpose. Avoid mistakes, realize what is true and what is a lie. Don’t spend more thinking you’re saving, don’t confuse being austere with the ill-fated austerity, don’t deprive yourself of having a good life by saving.
The first untruth about saving is that saving is difficult and only those with high incomes can do it. That’s a myth. In fact, those with less money are forced to better manage the little they have and are more disciplined in saving.
If you can’t save at the end of the month, try changing your strategy, putting a fixed amount aside as soon as you receive your salary. It doesn’t have to be a high amount. The important thing is consistency.
Try taking the test of saving 1 euro a day or embrace the 52 weeks challenge and you will see that you succeed.
Enjoy what’s cheap
How many times, deceived by a very low price, have you bought something that was damaged in three times and you had to go buy the same product again? It is a case to say that the cheap is expensive.
If you have to buy household appliances, shoes and clothing, such as winter coats, it might be worth investing a little more for durability.
Sometimes, the most expensive is better and more durable, so it turns out to be cheaper.
Buy as much as possible on sales
No, we are not saying stop shopping on sale. This season is excellent to buy that piece that you’ve been loving for weeks but that was out of your budget.
It’s also a good time to buy basic clothing items that are good for more than one season, such as jeans, suits, winter coats. That way you’ll be saving, but if you buy wildly just because it’s too cheap, you’ll end up spending more money. Besides, you end up with things that are out of fashion and that you will never use.
Stock up when there are promotions at the supermarket
If you’re always on the lookout for promotions, checking out what the discount sites are offering and there’s no supermarket leaflet that escapes you, you’re doing great!
Paying attention to promotions is a way to save. However, when you go to buy what caught your eye, bring only what you need. Don’t be tempted to bring more packaging just because the promotion is “worth it”.
Taking advantage of all the deals is a common savings myth. Be selective, especially when it comes to food, so you don’t end up with spoiled food at home.
Home appliances in standby
This is one of those myths about saving that is insistently denounced, but there are still those who think that it is enough to turn off the button on your appliance for it to stop spending. It spends, it continues to consume energy. Whenever possible unplug them from the socket, this is the only way to save energy.
Turn off the lights whenever you leave a room in the house
If there’s a myth about saving that runs through generations, it’s this one. “Turn off the light”, we tell our children, as our parents told us, as our grandparents told them. But if you leave a room in your house for less than 15 minutes, it’s not worth turning off the light, as the energy you spend turning it back on is greater than staying 20 minutes with it on.
Dishwashers spend more
This is a myth about savings that is beginning to be dispelled. If used correctly, the dishwasher can be more energy efficient than hand washing in the dishwasher.
If the machine is completely full, the dishes properly packed and choosing an “Eco” program will consume less water and energy. When washing dishes by hand, it is common to leave the tap open for too long, in addition to having to use the water heating system.
As far as cars are concerned, there is also the myth that driving in neutral is saving fuel. Wrong.
In modern cars, with electronic injection systems, even more fuel is sent into the mixture when it detects a decrease in revs. The vehicle’s system understands neutral as a sign that the engine is shutting down, so it tries to counteract with more fuel.
Book flights through travel websites
If you usually search for prices for your trips on flight and hotel information aggregator sites hoping to find the best deals, rethink your strategy.
These sites have to make their profit by charging their fees. Not infrequently, if you go directly to the websites of the airlines or hotels, you can get cheaper. Furthermore, you don’t run the risk of missing out on special promotions. Always compare to make sure you’re saving.
Have the nest egg in a savings account
Currently, this is another of the myths about saving. It is certainly better to have the money in a savings account at the bank than under the mattress. However, at this time it may not be the best option for your savings, unless it is to store your emergency fund.
If you want to monetize your savings, one of the first things to know is that the safer the investment, the smaller the gain. Equate other alternatives: capital insurancezation, investment funds, PPR funds. If you have a more conservative profile, opt for Savings Certificates: with the rise in interest rates, they are already yielding good money.
Article originally published in July 2019. Last updated in January 2023.