How to spot a false economy
Do you ever get that feeling that you’ve paid more than you should have for certain products? If you’ve ever felt like you aren’t getting your money’s worth then you might be onto something. Here, we’re going to show you how to make your money go further on everyday purchases. If you’re not the kind of person to make extravagant buys such as big holidays, new cars or flat screen TVs, then it can be puzzling to feel like you still don’t have any extra cash at the end of the month. But your lack of cash may be down to the type of household products you buy.
It’s all about buying into a false economy.
What is a false economy?
A false economy is defined as “an apparent financial saving that in fact leads to greater expenditure.” Which means, something that appears as a cost saving exercise in the short-term , but actually cost you more money in the long-run. For example, have you ever bought something on the cheap, only for it to break soon after? Forcing you to spend money to either fix it or replace it? This is what’s known as a false economy.
Similarly, supermarkets often promote what seem like deals, only for you to look closer at the offer to realise it isn’t really an offer at all! Money.com published an article about miniature Coca-Cola cans – the cute, stylish packaging helped boost sales of the mini cans to 278% higher than those of regular cans in a trial marketing period. This happened in the US, but the exact same thing happens here in the UK. How many times have you been persuaded to buy 3 of something because of the draw of a yellow sticker and a promise of a “saving?” We all do it!
Here are some tips to help you avoid falling into the trap of a false economy. And to make sure your money goes further!
Sometimes a brand name is better
Even if a an own brand of something is cheaper, try to find out whether it’s going to be better. A good example of this is washing up liquid. A brand name may be £1.50 and an own brand may cost 75p. But if you need to use three times as much of the own brand as you do the brand name you’re not going to be saving any money.
Beware the yellow sticker
If you only need one of something, and you’re not going to be needing any more in the future, then be careful not to fall into the trap of the yellow discount sticker. Sometimes the discount offers you 3 for 2 which seems like a massive bargain. But only if you’re going to use it. If you only need one of a certain product then you’re spending more to 3 – which you will never use!
If you’ve fallen into these traps, don’t worry – we’ve all done it and they’re designed to catch us out. But if you are looking to get some extra cash because you’re coming up short before payday, we can help. We provide payday loans in Manchester, as well as the rest of the UK to give you peace of mind that you’ve got everything covered before your wage goes in. Contact us for more info!