Slideshows | March 28, 2012

Do you believe these widespread money myths?

Discount coupons – or vouchers – can make a comeback in global financial crises, with a modern twist thanks to online and mobile. But do they always save money?

Our slideshow of four widespread money myths also questions the "latte-nomics" approach of cutting fancy coffees and other small items of non-essential spending. It asks if cheapest is always best and highlights opportunity costs.

 

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Discount coupons always save money Remember, even items on sale cost. Getting a cheaper deal on something on your shopping list can help budgets but buying just because something is on offer can hurt.

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Cutting out a daily coffee is a quick way to solve money woes ING senior economist Ian Bright blogs in Will a daily latte ruin my retirement fund? that having a basic budget, with long-term savings goals, might generate more bang for buck than cutting fancy coffees or other small pleasures.

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Cheapest is always best Low cost can be attractive but look beyond the cheapest price tag. An eZonomics poll Is service or price more important when buying insurance? found that service was more often considered more important than price - with the level of cover another important factor.

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Time is free Remember to count the value of your time, says our blog. For someone with a lot of spare time and low earnings, it might make good economic sense to cycle an hour to get a €20 discount – but the same might not be true for the time-poor, cash rich. And if you hate shopping, the opportunity costs skyrocket.

eZonomics team
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