5 things you're paying too much for - and one you probably aren't

We often end up paying way too much for things that only satisfy us for a very short time - if at all

We all know we should be saving money, but sometimes it seems like the retail world is working against us.
All the beautiful goods out there are designed to pull on our very heartstrings (pursestrings!) and make us feel not just that we want them, but that somehow, we can’t live without them. The reality, however, is that we often end up paying way too much for things that really only satisfy our desire for acquisition for a very short time, if at all. Check out some of the things that many of us pay way too much for - and the one thing we expect to get for way too little.

5 items you overpay on

1. Creams and cosmetics

Some of the most expensive cosmetics out there literally cost more than their weight in gold. In fact, a number of moisturizers, sunscreens and eye creams actually contain gold. The fact that we are literally willing to slather ourselves with a precious metal in the hope of becoming just a little smoother, younger, brighter or more beautiful helps to explain how women end up spending an estimated $13,000 to $150,000 on cosmetics in their lifetime.

Some of these products do work, at least to an extent, but the most expensive beauty products probably promise far too much – and offer far too little compared to their less expensive counterparts. Dermatologists generally agree that a basic moisturizer and plenty of sunscreen are about the best any of us can do. If you really want to feel younger, skip the most expensive stuff and save that cash for a vacation!

2.  The latest electronics

Electronics have become the new status symbol. Even when a simple cellphone or low-cost laptop will do, we can’t help but be drawn to the lightest, sleekest, model with the most processing power and the crispest display screen. Many of these high-end gadgets cost several times more than their cheaper counterparts, which often have the same hardware, software and a few of the same cool features. Advances in producing electronics have rendered many inexpensive brands as effective and durable as their more expensive cousins. If you’re choosing a new laptop based on the brand alone, you’re likely paying too much.

3. Food and fine dining

In 2010, 28 percent of the money Canadians spent on food went to restaurant meals. Okay, we all need to go out and celebrate, meet friends for lunch, or enjoy a romantic dinner from time to time. And when we get the full experience of dining out and not having to cook, a restaurant meal is probably worth the price.
The problem is that Canadians visit a restaurant for a meal or snack about 520 times per year, according to Statistics Canada. Now just think of how many times you’ve eaten something you didn’t even enjoy just to save yourself another trip to the grocery store. The markup on any prepared food is very high because convenience is a luxury. If it’s one you can’t afford on a daily basis, you’re paying way too much.

4. Cars and driving costs

A survey of Canadians by the CAA released in February found that 90 percent of drivers underestimate the cost of owning a vehicle and not by a little - 40 percent of that group underestimated it by $4,000. And while Canadians bought 1.6 million brand-new vehicles in 2012, according to DesRosiers Automotive Consultants, you don’t need to be one of them. In fact, if you can resist the seduction of the new car smell, you can save yourself 15 to 20 percent per year in depreciation, along with dealer fees, financing costs and other financial pitfalls.
If everyone’s buying new cars this year, let them. It’ll only drive down the price in the used market, allowing you to roll away in a nice car without paying too much for it.

5. Brand name products

Whether you’re buying breakfast cereal or batteries, brand name isn’t always best – and it often comes at a huge markup. In many cases, off-brand products are produced in the very same factories as their brand-name competitors; one product gets a fancy label and a huge markup, the other doesn’t. If you automatically reach for the big brand without determining whether it’s really a cut above, you’re probably paying too much.

What you’re paying too little for

We’re all for saving money, but if there’s one thing we’re probably all guilty of paying too little for, it’s our clothes. Most of us have drawers full of cheap T-shirts and a closet stuffed with discount fashions. According to Elizabeth L. Cline in “Overdressed: The Shockingly High Cost of Cheap Fashion,” American women now own more clothes than ever. By some estimates, many of us buy our own weight in clothes each and every year, and yet we pay less for our garments than ever before.
In light of the recent collapse of the Rana Plaza factory in Bangladesh which led to the death of more than 800 workers, it’s clear that all that cheap stuff still has its price. And let’s be honest: Do you really get much enjoyment out of those flimsy T’s and tops that shrink and shrivel the first time you wash them? Before long, you’re back to those beautiful, designer shoes you can only afford one pair of, or the luxurious cashmere sweater that costs a chunk of your paycheck. Which begs the question: Why did we ever buy all that other stuff to begin with?

Consider the long run

What you buy is, of course, your business, but when it comes to making smart choices, the bottom line is value. In many cases, we pay way too much for things that deliver little more than an illusion. In some cases, however, the cost of saving money is just too high in the long run. And speaking of the long run…isn’t that what really matters when it comes to personal finance?

From Goldengirlfinance.com/ Posted by Mags