Ways We Think We're Saving Money But We're Probably Not

Buy one, get one half off! Pick up today — pay later! Spend $100, get 10% off! We’re all bombarded with tempting deals and limited-time offers on a daily basis. In fact, I bet there are several emails in your inbox and ads on your feed with some sort of “hook” to get you in their virtual door.

It’s easy to fall for these marketing gimmicks, which often force you to spend money in order to save money. Or in some cases, the hoops you have to go through or the mental energy you’re exerting just isn’t worth the pennies you end up saving in the end.

Let’s unpack some of the ways we might think we’re saving money, but in actuality, we’re probably not.

Quick Disclaimer: I am not a financial professional and nothing I say should be taken as official financial advice. These are simply my observations after nearly 32 years on this earth, about 10 of which I’ve spent as a skeptic to consumerism.

Buying (the Wrong Things) in Bulk

Buying in bulk can make a lot of sense in a variety of circumstances. For example, bulk purchases make sense for consumable goods you’ll absolutely go through in the near-ish future (toilet paper, paper towels, soap, etc.) if you have the room to store it. Plus, some non-perishable food makes sense to buy in bulk, especially if you have a large family that goes through things quickly! But for many situations, buying in bulk is often not the most wise decision, especially if it will go bad, you don’t actually need that much of it, or if you don’t have enough room to store it. You may end up with a freezer full of meat you never end up using and you eventually have to throw out because it’s been in there too long (I say this one from experience!).

Clipping Coupons

Do you remember the show Extreme Couponing? It profiled the “super couponers” who have made a full-time job out of collecting coupons, even going to the extremes of sifting through dumpsters to find them. These couponers often have storage closets or garage shelves filled to the brim with dozens of sticks of deodorant, rows of dish soap, and impressive collections of canned goods. Again, there is nothing inherently wrong with using coupons or stocking up on some essential goods, but I think there’s a level that can become a bit obsessive — where the addiction to the “deal” can overtake the rationality that answers the question “do I really need this?”

Buying Something Just Because It’s On Sale

We all love a good sale. And as a thrifty person who primarily shops secondhand, there’s something extra enticing about a discount — and that thrill and satisfaction knowing you paid less for something than its “true worth.” I have to ask myself every time I feel drawn to an item on sale, “if this was full price, would I be considering this right now?” The answer is often no, which reveals a lot to me about how much I genuinely want or need the item in question. To be clear, I definitely still buy things that are on sale, because they are more attainable and fit within our budget. But I still have a guard up to filter out those things I’m buying because it has a shiny SALE sign above it or red ink on its tag.

Buying Cheap Items

I’ve talked about fast fashion quite a bit in the past and I don’t think I need to delve into that too much, because we all understand the downsides of buying cheap, poorly made clothing. And the same goes for furniture — and just about anything, really! You may be saving money upfront when you buy these things, but in the long run, you’ll most likely need to replace the item over and over again, as it gets worn down or breaks altogether. Alternatively, if you spend a little more money up front for something of higher quality, you could hang onto that sweater or couch for several more years, getting more use out of it. And if it holds up well enough, you could even sell it eventually, so someone else can give it a whole other life!

Falling for BOGO Deals

A BOGO deal is one of the trickiest marketing ploys out there, because it taps into that part of your brain that says “well, I was going to buy this anyway!” But were you planning on spending 150% of the price on that thing? Sure, you’re getting two of that item, but did you really need two? Just think about it as paying 150% of the price and you may reconsider jumping into a BOGO deal right away.

Financing (with Interest)

By now, we can all hear Dave Ramsey’s voice echoing in our minds, urging us to avoid financing of all kinds — especially your car, appliances, and other big purchases. While I don’t agree with several of the things he teaches when it comes to finances, I do have to admit that he’s right about this one: financing lures you in with its short-sighted promise of not having to shell out a ton of money right away, but really gets you with interest over time. And if you have enough of these payments happening at once, there’s a chance you could get overwhelmed and fall behind on payments, which is where the debt can really pile up. For the first time ever, Brandon and I agreed to an 18-month interest-free plan for the new HVAC system we got a year ago. But the key there is interest-free; so essentially, after a down payment, we were able to spread out smaller payments over the course of 18 months (which are almost up!), without paying a single dime beyond its actual cost. But the key is to pay in full by the “due date,” at which point an insane amount of interest would kick in!

Signing Up for Certain Memberships, Clubs or Subscriptions

We all love to belong — especially when we get something out of whatever club we’re joining. According to C&R Research, the average American spends $219 each month on subscription services — and that’s usually split amongst several smaller subscriptions. That’s because we’re more inclined to sign up for (and less inclined to cancel) subscriptions costing less than $10 a month. And sure, several of those are “necessary” and/or add significant value to our lives, such as Spotify or a budgeting software, but there are others we have to admit are luxury at best and completely unnecessary at worst. In fact, there are some you may not even realize you’re paying for at all! To find those sneaky small payments, look at your most recent bank statement to take inventory of your expenses for an entire month and pluck out those $5.99 recurring payments to see if you still use or need those services.

Similarly, it’s tempting to become a member at a physical place you visit once, such as the zoo or a museum, thinking you’ll be back multiple times that year, making a membership more economical. While that may be true — it also might not be true! And that’s especially applicable to places like museums, as there are often several years between visits.

Driving Out of Your Way for Cheaper Gas

Gas has risen and fallen quite dramatically over the last few years, causing panic amongst drivers everywhere. While you can certainly save some money by regularly frequenting the places with lower rates, it’s not usually worth the hassle to go significantly out of your way in pursuit of a place costing 10 cents less per gallon. If you’re filling a tank from empty to full, that may add up to just $1.60 or so in savings, depending on the size of your tank. Was driving that distance and spending another precious resource, your time, worth that price? If not, settle for convenience in this case and don’t lose sleep over it!

Buying Something to Keep Status of Point System

Sometimes we get locked into these elaborate point or rewards systems, for things such as hotels or flights, and we’re obligated to fork over a certain amount each year in order to maintain our status. Unless you were already planning on booking a trip, this can then defeat the purpose of those point systems in the first place! The cost of admission cancels out the points gained.

Eating Junk Food or Fast Food Frequently

I’m no saint when it comes to eating healthy, but overall, I understand that continually making the cheap or fast choice when it comes to food can have negative effects down the road. Not to mention, fast food being cheap is actually a complete myth. Just go through a drive-thru and order for the whole family — and compare what that total would have been in the ‘90s (or better yet, what a couple cans of beans, some rice and vegetables would have been at the grocery store). But if you are continually buying the cheaper, less healthy food option, you will ultimately pay a higher price for both your health and finances in the form of medical bills, prescriptions, etc.

Buying More Than One of Something

Often when we encounter those “good deals” we’ve talked about, it can be tempting to go ahead and stock up on more than one of something, whether it’s as a “backup” or to get more than one color of the same thing. This can then cancel out that good deal you were so excited about, because you’ve tricked yourself into spending twice as much as you had originally planned on. Not to mention, if or when you do need that backup down the road, you can make that decision at that point — and chances are, there will be another “good deal” to take advantage of.

Spend $100, Get 10% Off

“Spend $100, get 10% off” is a prime example of spending money to save money. No matter the percentage, you’re still being incentivized to spend more than you probably intended to. Marketers create a goal to reach, promising a pretty measly percentage off as your reward. If you’re at a clothing store and you had planned on spending around $50, you might be tempted to reach that $100 goal, which will give you $10 off (which is really just canceling out the tax), so you’re now spending $90 — $40 more than you had planned to!

What False Savings Do You Fall For?

Trust me — I’m not immune to these misleading false savings! And my guess is you aren’t either. Which ones have you found yourself falling for? Let me know in the comments below!