Worst Money Tips

Benjamin Franklin once said, “If you would be wealthy, think of saving as well as getting.”

We have all been there. We’re starting to save a portion of our income to become financially independent. We seek the advice of friends, family, co-workers and experts, but sometimes the suggestions can really scratch your head.

There is a lot of great information out there on how to save money, such as saving pocket change, establishing a budget, finding efficiencies in your daily expenses and much more. If you’re a novice saver, there are some tips to avoid.

If an expert, someone close to you, a book or anyone gives you any of the following tips, steer clear of this person’s advice.

Rewards Programs

For some reason, consumers believe that if they belong to a store’s rewards program that they will save a lot of money in the end. It is true that you could get $10 off if you spend more than several hundred dollars or you can receive a gift after you have accumulated a certain amount of points. But how much is this really costing?

Think of it this way: if you go to your mainstream bookstore down the street and spend $25 just for two books (not even one book these days), you’ll garner some rewards points. However, if you simply go to Amazon.com, you could get several books for $25 and free shipping.

Wholesale Stores

For families, it can be a good investment to purchase memberships at various wholesale stores, such as Costco. On the other hand, though, it could be a waste of money if you’re a single person living in a bachelor apartment in the middle of the city.

The average Costco membership fee is $55 per year. It depends on how much you’ll spend, but judging that you are a single person in a small apartment, you most likely will not need a lot. Therefore, you are wasting $55 and some food items that may spoil.

Basement Apartments

Sure, this may not be valid for everyone, but a lot of people have complained about basement apartments due to the paucity of light, constant bugs, the smell and general unpleasantness that comes with living underground.

A basement dweller may save some money, but how much will you spend by leaving your apartment just to leave your apartment? If you live above ground in your apartment, chances are that you are more likely to stay home than spend your money outside.

Eating Fast Food

In this day and age, we all try to search for efficiencies in our budget, particularly our grocery budget. For some odd reason, there are people out there who tend to believe that if you order from the cheap menu at McDonald’s, for example, you will save money in the end. This is false.

If you spend your money wisely at the grocery store, you could not only save money but you will also have a balanced, nutritional diet and meal.  What’s better?  A Burger King Whopper or a stew that can fill you up for at least three days of the week?

Heading to the Movie Theatre

Back in the day, it used be inexpensive to watch a picture at your local movie theatre. Nowadays, it can make a huge dent in your wallet. If you’re a family of four, it will cost you tickets, transportation and food.

A lot of people will tell you that going to the local cinema is the best way to save money on entertainment. Your best bet?  Rent a couple of pictures at home, buy popcorn at your grocery store and enjoy family time without loud individuals on their cellphones.