Have you fallen for these money saving myths?

1. Buying in bulk is better

How many times have you stocked up on those unbeatable supermarket deals only to find they are still at the back of the cupboard months later? Supermarkets make their profits by constantly pushing the offers that are going to bring them in the most profits and that means getting clever with advertising. A good rule of thumb is to use warehouse bulk buy stores for non-perishable items such as toilet paper and cleaning products and to shop for the best perishable deals in your supermarket.

2. All credit cards are evil

How many credit cards do you have in your wallet? One? Three? More? None? Many of us have a credit card that we keep on hand for emergencies and they can actually offer many rewards. As long as you use credit cards in a sensible way, you can take advantage of loyalty points, free gifts and also insurance for your purchases. By shopping around for 0% credit card deals, cash back offers and other rewards you can make a credit card work in your favour.

3. Exchanging currency at the airport doesn’t cost a penny

So, you’re just about to embark on a well earned holiday. Your suitcases are packed, you have your passport ready and you plan to pick up your currency at the airport bureau de change. After all, they offer zero per cent commission free, right? Wrong! What they do instead in order to make their profits is that they give you a dreadful exchange rate and as a result, less holiday money. Often up to ten per cent of the currency bought goes to the bureau coffers. It’s a much better idea to buy your currency online and to compare exchange rates using a currency comparison service.

4. Online deals will always save you money

In terms of convenient retail experiences, we have never had it so good. At the click of a mouse or a swipe of a finger, we can buy what we want online in seconds. But are those online deals always so good? Itchy clicker finger could strike before you’ve had a chance to really compare prices or look elsewhere for the same product. Don’t forget the high street, local stores and even coupons in the local paper before you shop online. Whilst it’s the quickest way to shop, it might not always be the cheapest.

5. Saving money is more important than paying off debts

We are always being told that we should have savings to fall back on and a nest egg for the future. But what if you also have debts to pay off? What should you tackle first? Well, at the end of the day it all comes down to interest. If your debts are costing you money each month, it makes sense to reduce and eventually eliminate them. What many people choose to do is to switch to a 0% credit card whilst also putting what they can afford into savings. If in doubt, speak to a financial advisor for professional guidance.

Aviva Tabachnik is an avid personal finance writer and Partnerships Executive at OPP award winning comparison website, MyCurrencyTransfer.com. Last week, Aviva live demoed her latest B2B innovation, CurrencyTransfer.com at Finovate, the world’s largest conference showcasing the future of financial and banking technology.

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