The consensus is to save money you have to pay out a lot of money which if you were planning to do this any way you may find a bargain but how many people go into a supermarket and spend extra to get that money off petrol voucher? Does spending extra money to save money make sense and is the savings make you better off or would it be better to put the extra money you saved on the petrol instead?
We don’t actually calculate this when we see money off deals and I think the supermarkets/marketing companies count on this. For instance if you get 10p of a litre of petrol and you spend £60.00 in store and you went in for a few items that came to £50.00 would you buy extra items to get to the £60.00 mark? Yes, a lot of people do but would it not have been more of a saving to use the extra £10.00 on petrol instead?
Let’s work it out
Petrol is say £1.30p a litre
You put in £50.00 worth of petrol
= £65.00 with voucher off you save £5.00
but you spent £10 to get the £5 off.
We all do this and most businesses/marketing companies are aware that when we see money off, bogof’s, savings we feel we are getting a deal but once calculated and circumstances on buying usually means we pay more or have loads of items we don’t need or want.
However if you are doing your weekly shop and it comes above the limit set for savings then you are in good saving territory as you were going to spend that anyway. This is when you are up and should feel that you have a bargain, say you refuel at the same petrol station each time then there is usually a scheme like Morrisons Mile Card or the Tesco Fuelsave for example that will give you money off vouchers, this will be a good deal as you are going to refuel anyway so you benefit. Nice.
Sainsbury 10p off per litre on £60 spend ends 30th April 2014
Tesco Fuelsave (need clubcard)
Asda petrol price checker (no money off)
Morrisons 6p off per litre on £40 spend ends 4th May 2014
I know people who constantly change credit cards and saving schemes to try to get that best deal. For instance someone I know has just received an upgrade to business Class on British Airways as they have an American Express card that they use to buy all their larger purchases so have accumulated the savings. Nice deal. But how many points do you need for an upgrade? How much do you have to spend as a minimum to be in line for the deal and how much monthly/yearly do you have to pay for the card?
So for example the preferred American Express card is £125.00 a year (free first year) but you have to spend £2000 in the first three months. You do not get charged interest if you pay whole amount monthly (so in effect you need to have the money before you spend it otherwise you will be liable for a late payment fee and interest added which believe it or not I cannot find the amount on the site, having looked elsewhere in google come up with one stating 36.2% variable.) If you do not pay the whole amount you lose your previous months points also.
So if you have the money already for your £2000 purchase and you actually have the purchase in mind and need it then you may benefit from the card but for the 20000 points you receive after the minimum 2k spend you get a return flight from Istanbul or a bose headset for example, good if you need them, if you do not then you will be buying things you don’t need to hit the limit, you will be looking for the money to pay whole amount to benefit and then you have to continue using it for large purchases to gain more points throughout the year.
American Express the preferred Card
Tesco Credit Card is also an example of savings that can be made as long as you pay the whole amount of purchases monthly. On this you do not get charged % of Transfers (a 2.9% fee applies so in effect you do get charged) but you get clubcard points whenever you use it so if you use it for all your household items say bills, shopping, fuel etc and pay off the balance you get clubcard points to spend on Travel, hotels theme parks etc.
This is great as stated if you shop here anyway as you will be spending the money anyway but again you only benefit if you pay the whole monthly balance off completely otherwise fees will start to be added and the whole benefit may become very costly instead.
Tesco Credit Card
Tesco Clubcard Points
A family member will always hunt around yearly for a holiday bargain and believe me when I say there are hundreds of pounds to be saved on holidays it almost does not make sense. Different people using different Travel Agents in the same hotel, with the same benefits (i.e. all inclusive) with hundreds of pounds difference in prices paid.
The differences in holiday may be flight times and airlines used but if this is not an issue for your holiday to be great then I suggest you hunt around. The best way of doing this will be to find the place you want to go on a travel agent site then put the name into search and this will show you others that you can book this holiday through. Tripadvisor is also a massive help as they will also show you cheapest prices by different agents as well as giving you reviews of the place (be careful here you could dismiss a great holiday from a review who may be a tad picky in their holidays if the review is bad)
This may take a few hours out of your life but I can guarantee that the savings are well worth it.
There are plenty of bargains to be found out there and with the internet at our fingertips usually easy to find but what one company describes as a bargain can usually mean paying more to receive it so when looking for deals do your research and make sure that what you are receiving is in fact what you need/want and that the savings outweigh the costs.
Always read the terms and conditions on any offer and always read the small print especially when you see * at the side as this will generally mean there are certain criteria that has to be met to actually qualify for the saving.