3 Questionable Ways to Save and Apply for a Loan

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Saving is always worthwhile, but not all saving tips are necessarily profitable. What are the best ways to avoid saving money?

We listed three questionable ways to save!

Maximizing tax refunds

Maximizing tax refunds

What better way to get tax refunds just in time for Christmas as if it were extra cash? Well, of course, better ways to spend money.

With tax refunds, saving is simply done by estimating your own annual income at the top end, which also results in overpayment of taxes and is returned to taxpayers later in the year. This year, returns will arrive on November 29, 2016, just right for Christmas gift shopping. Why is it not wise to save with tax refunds?

First, paying extra tax means that the taxpayer lends money to the state. While the state pays interest on tax refunds, the interest rate is usually very modest (0.5% in 2016). You can get a better interest on money already with a term deposit, not to mention funds or shares.

Secondly, there is a psychological risk associated with tax refund money. The worst mistake is to think that tax refund money is somehow “extra income” regardless of other household activities, even though it is earned earnings. Instead of paying extra tax, it’s a good idea to make a good savings plan.

Instead of paying too much tax, it’s a good idea to make sure that all possible tax deductions have been made.

Postponement of investments

Postponement of investments

Can a new car not be bought or a kitchen renovation done when it comes to saving? Procurement is usually done when there is no surplus, or otherwise you just want to save money. However, in a sense of austerity, postponing investment is not always sensible.

An investment is an investment designed to pay off in the long term. Typical household investments include purchasing a car, repairing a pipe, and installing an air source heat pump.

 

However, postponing essential investments can turn into a bad savings idea, as the investment can significantly reduce running costs. For example, a newer car usually consumes less fuel than an old one, and expensive maintenance should not be over immediately.

On the other hand, purchasing an air heat pump can reduce your home’s heating costs, which will pay off in the long run. However, from the point of view of saving it is essential to understand that consumer goods or services that do not generate savings are not considered investments.

It is always worthwhile to choose the most favorable financing for the investment. You can find the best option in our loan comparison:

You can apply for a loan from our loan comparison up to $ 50,000, such as Bank Norwegian or Santander.

Cheap flights

Cheap flights

So are cheap flights not cheap? Yes they are, but affordability is often based on the fact that flying is cheap – nothing else. Low-cost carriers may charge large sums for checked-in luggage, which are not usually included in the price of a cheap flight.

If hand luggage alone is not enough for your trip, you may want to consider low-cost flights carefully before you book your flight.

The low cost of cheap flights is also based on the fact that they often use smaller airports in major cities which are far from the city center. At smaller airports, the airline does not have to pay so much for airport charges, but for a passenger, the cost of travel from the airport to the center may already be high so low cost flights are no longer the cheapest option.

For example, many low cost airlines classify Skavsta Airport as a Stockholm Airport, although in reality the airport is about a hundred kilometers from Stockholm.

Low cost flights can be a great way to save money if you have a small luggage trip and find out in advance the location of the airports and transfers from the airports to the resort. However, the most important thing to remember is that cheap flights may not always be the cheapest option as a whole.

There are many other good ways to save on airfare other than cheap flights. Also read: 9 tips on how to save on airline tickets.

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