For many people, saving money is more important these days than ever. We experienced a major financial crisis just a few years ago that caused many people to lose their jobs and even their homes, and some people are still struggling to recover. Lots of us are living paycheck-to-paycheck these days and under those conditions, saving money becomes almost mandatory. Although the following strategies may seem like good ways to save, taking a harder look reveals that you are probably better off steering clear of these ideas and employing some methods that do work.
1. Store credit cards
Credit cards, with their interest payments and fees are are hugely profitable for the banks and financial institutions that issue them, so it’s no wonder that stores want in on some of that action. That’s why you will sometimes see store employees stationed at strategic locations inside retail establishments armed with clipboards and a well-rehearsed pitch intended to make you believe that having a store-issued credit card will make your life better. It won’t.
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For most of us, and especially those of us who already have credit card debt, a new credit card is the last thing you need. The temptation to buy now and pay later can be quite compelling and can lead you to buy something you do not need. Store credit cards also usually have higher interest rates than the big name cards. Stores might try to lure you with offers of discounts on your purchases, but wouldn’t you be better off not spending money you don’t have for the sake of saving 15 percent on something you don’t need?