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Good Deals That Really Aren't
Everyone loves a good deal, the idea that you are getting something for less than you should be paying for it. But sometimes those good deals end up costing you more in the end. The website MoneyTalksNews cites seven good deals that aren’t:
Things that are cheap to buy but expensive to own. It is very inexpensive to buy a printer that uses ink cartridges. But when you run out of ink, your savings start to evaporate. Printer ink is one of the most expensive liquids in the world, at about $8,000 a gallon. You will pay more to buy a printer with a refillable ink reservoir, but it will cost you a lot less over time.
Buying a house to save the cost of rent. There are many reasons to buy a house, but saving on rent is not one of them. Even if your mortgage payment compares favorably to the cost of rent, there are a lot of other expenses that come with homeownership, including fees and closing costs as well as taxes and routine upkeep. Plus, unforeseen costs like surprise home repairs can blow your budget in a hurry.
Taking a 401(k) loan to pay off debt. You probably will save in interest costs, but by not having your money invested and earning returns that compound over time, you probably will end up losing a lot more.
Only shopping at warehouse clubs. Yes, the prices usually are cheaper at a warehouse club. But the temptation to buy things you don’t need or won’t use is also great. Plus, warehouse clubs rarely accept coupons. And then there is the cost of a membership.
Buying in bulk. Generally you save money if you buy an item in bulk. But especially in the case of perishables, be sure you will use everything you buy before it goes bad.
Avoiding the doctor or dentist. As the saying goes, an ounce of prevention is worth a pound of cure. If you skip regular checkups at the doctor and dentist, you might end up with a problem that will cost you a lot more down the road.
Driving all over for a deal. You see that gas is a couple cents cheaper at a station 10 miles away, or that a store in the next town has a sale on something you want. Will you really end up spending less, once you figure the cost of gas to get there and parking when you arrive? Maybe not.