It’s important to realize that you don’t need to agree with every piece of financial advice you come across. I certainly don’t. Recently, I read an article by Molly McCluskey on Daily Finance, titled “5 Unconventional Ways to Squeeze Extra Cash Out of Your Budget.” While I’m all for new ideas to save money, some of the suggestions in this article seemed misleading. Let’s break them down and discuss why.
McCluskey’s Tips:
1. Rent, don’t buy. This advice can be quite controversial. While renting might be suitable in some situations, buying a house or a car usually provides better long-term value. When you own property or a vehicle, the payments eventually stop, and you retain the asset. On the other hand, renting means you’ll be making payments without accumulating any ownership. Some people prefer renting to have nicer cars or live in luxury apartments, but if your goal is to save money, owning a used car or a modest home is typically more beneficial.
2. Turn off automatic bill pay. I disagree with this one. Automatic bill pay has ensured I never miss a payment or incur late fees. In fact, some bills come with discounts for using auto-pay. Plus, it saves time and money on stamps, checks, and envelopes. The real message should be to stay aware of your expenses and actively seek ways to reduce them, rather than blaming automatic billing. Set a goal to tackle one major expense each month and look for opportunities to lower your payments on things like insurance, car loans, or credit cards.
3. Unsubscribe, unlike, un-friend, and un-follow. This tip aims to break the cycle of impulsive online shopping. Yes, fewer advertisement emails can lead to fewer purchases. However, I find it useful to receive some promotional emails because occasionally, they offer significant discounts on items I need, like household appliances or travel deals. If an email doesn’t contain a useful offer, simply delete it.
4. Declare a weekly “Shopping Day.” The idea here is to reduce impulse shopping. A better strategy might be to exercise some self-discipline. One useful tip is to make a shopping list and stick to it, which helps avoid unnecessary purchases.
5. Put down your smartphone. This tip is about stopping impulsive purchases made via your phone. Personally, I’ve never bought anything from my phone, and I doubt it’s a widespread issue. It seems less secure than shopping from a home computer with proper antivirus protection. Again, it all boils down to discipline and focusing on what you genuinely need. One rule I follow is to compare prices from at least three different sources before making a purchase, which helps me decide if I really need the item and ensures I get the best deal.
In conclusion, while these tips have good intentions, they could have been presented differently. Not every financial article provides the ultimate solution, and sometimes they can even contradict each other. We’re all individuals and need to make decisions that suit our specific situations. Always remember, no one cares about your money as much as you do.
