Personal Finance Tips – Avoiding Bargains You Can not Afford

Many people heard the saying "I can not afford a bargain." There are times when things that seem a bargain at the first glance turn up to be really expensive and not as useful in the long run. Faux bargains have several indicators you should be aware of.

Bargains are typically things you do not need: books you are not interested in, software and equipment you will never use, or CDs you will not listen to, DVDs with "funny" movies, poor quality clothes and shoes. All these things will only add to the clutter you have in your home, without adding any value to your lifestyle. Actually your lifestyle can be threatened if you keep buying these things just because they are cheap, without considering whether you need them or not.

Another widespread kind of false bargain is things that have to be replaced early and often. Poor-quality stuff may be cheaper when you buy them, but the expenses can build up in the long run. So if you really want some expensive item, set money aside for it and buy it, instead of throwing your money out on cheaper replicas that will last only for a short period of time.

Keep in mind that the money you spend on a "bargain" is money you can not use to buy the original, high quality version. Buying cheap stuff that does not last can actually cost more than the original one that is made for a lifetime.

Another way to know a bargain you should not buy is that you would not be interested in buying the full-price object. If you are tempted to buy an item just because it is cheaper than normal, ask yourself whether you'd be willing to pay for it the full price? By asking this question you will be able to break away from the hypnotizing prospect of short-term savings and think about whether you really need that item or not.

A sure sign of a faux bargain is if you think that you will be able to sell the item on a garage sale if you do not need it. If you already think abut selling an object before you buy it, and if that it is not some valuable antique or something similar, you should definitely not buy it.

Spending now to save later is the opposite of buying bargain stuff. The initial spending may be greater, but in the long run it will help you save money. You can insulate your home, buy energy efficient appliances, keep your car in a good shape so you can avoid major repairs, or buy equipment that improve productivity.

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