7 Ways You Think You’re Saving Money That Aren’t Working

Many of us try to live a frugal lifestyle, finding ways to cut back in any way we can. But no matter how well-intentioned we are, some of those strategies might actually be working against us.

“I often see clients using tactics like couponing or rewards credit cards that end up costing more than they save,” said David L. Blain, CFA and chief executive officer at BlueSky Wealth Advisors .

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“Couponing in particular requires a major time investment hunting for and clipping coupons, and people frequently end up buying things they don’t need just because they have a coupon,” he added.

Below are some more ways we think we’re saving that experts say aren’t actually working to our benefit .

Money mistakes the super wealthy never make - that you might be doing now.

Bulk Buying

One common mistake, according to Justin Godur, finance advisor and founder of Capital Max , is the allure of bulk buying. “Many believe purchasing in bulk saves money, but without careful planning, this often leads to overspending,” he said.

He noted that some items may end up expiring before use, and nonessential goods can just clutter your home. Instead, he recommended focusing on buying only what you need and can consume within a reasonable time frame.

“It’s more economical and reduces waste,” he said.

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Cutting Out Small Indulgences

Another frequent error Godur said people make is cutting out small daily indulgences, like coffee or lunch with colleagues. “While it seems like these small sacrifices add up, they often lead to feeling deprived, which can result in splurge spending,” he shared.

He explained that a more effective strategy is to create a budget that allows for these small pleasures while cutting back on larger, less frequent expenses, such as dining out at expensive restaurants or impulsive online shopping sprees.

Using Credit Card Rewards as a Primary Savings Method

According to Godur, many people also fall for the trap of using credit card rewards and cash-back offers as a primary savings method. “While these rewards can be beneficial, they often encourage unnecessary spending to earn points,” he remarked.

A better approach, he urged, is to use these cards responsibly and focus on paying off the balance in full each month to avoid interest charges.

Saving What’s Left After Spending

The mindset of saving what’s left after spending is another pitfall. “This often results in minimal savings,” said Godur.

He said a more effective habit is to automate savings, treating it as a non-negotiable expense. “By setting up automatic transfers to a savings account, you prioritize saving and adjust your spending accordingly.”

Abid Salahi, finance expert and co-founder of FinlyWealth , agreed that automating savings can be a game-changer. “By setting up automatic transfers to savings accounts right after payday, individuals can ensure that they prioritize saving over spending,” he said.

This strategy, Salahi explained, simplifies the saving process and reduces the temptation to spend what is meant for savings. “According to CNBC, individuals who automate their savings are three times more likely to reach their savings goals,” he added.

Relying On Loyalty Programs

Another prevalent yet ineffective money-saving habit is relying on loyalty programs. While these programs seem appealing, Salahi said they often encourage consumers to spend more to earn rewards.

“Consumers are frequently lured into spending beyond their means, believing they are saving when accumulating debt,” he cautioned.

Waiting For Sales

“Many people mistakenly think waiting for sales is a smart saving strategy,” said Salahi. “This often leads to impulsive buying behavior when items are discounted.”

He explained that this behavior undermines the intended savings and can lead to clutter and wasted money on unnecessary items. A more effective way of establishing specific savings goals, he advised, is to establish objectives.

“Individuals may need help prioritizing their finances,” he said. “By setting concrete goals — such as saving for a vacation, a home or retirement — individuals can create a structured plan that motivates them to save consistently.”

Godur similarly agreed and noted that while popular money-saving tactics might seem effective, they often lead to counterproductive results. “By being mindful of these pitfalls and adopting more strategic habits, you can achieve genuine financial stability and growth,” he concluded.

This article originally appeared on GOBankingRates.com : 7 Ways You Think You’re Saving Money That Aren’t Working