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Frugal Confessions: When Saving Money Backfires

Each year countless Americans resolve to save money. In fact, the Nielsen’s Global Health & Wellness Survey found that Americans’ third most popular resolution in both 2015 and 2016 (after staying fit and losing weight) was spending less and saving more. That can be a worthwhile goal, but if we take thriftiness to extremes or don’t pay attention to what’s happening, we may regret that choice — or wind up spending even more money than we’d planned.

[See: 10 Financial New Year’s Resolutions.]

Just ask Tiffany Aliche, founder of The Budgetnista and a former U.S. News contributor. Aliche freelances from home and for three years resisted buying a printer. Instead, she drove to Staples and paid 10 cents a page every time she needed to print and scan a contract or other document. “When I went to Staples and they knew me, [and] when I found myself helping the patrons with the machines, I realized I was there too much,” Aliche says. “There was an opportunity cost. It was costing me money in time not working,” she adds. Now that she spent the money on an all-in-one printer, scanner and copier for her home office, she says it’s saved her a lot of time and unnecessary headaches.

“There should be a purpose behind the savings,” Aliche says. “You’re saving because you’re putting that money towards retirement, or saving with a goal in mind to make sure that you’re not just saving for savings’ sake,” she explains. Otherwise, “you can get into the habit of not enjoying life ,” she adds.

Read on for stories from savvy consumers whose resolve to live frugally and cut costs may have gone too far.

The Internet Abstainers. Roughly two years ago when Mike Shubbuck and his wife, Tara, the authors behind the travel blog TwoTravelaholics.com, returned from an around-the-world trip, they got an apartment in the District of Columbia and decided to see how long they could go without paying for internet. “We thought work access and library or cafe access would be enough,” Shubbuck says. Turns out, it wasn’t. Shubbuck was freelancing at the time, so after doing a video or photography shoot, he’d have to upload footage to get it to a client and needed internet access. Plus, in the afternoons, after school let out, kids would fill the library, making it hard for Shubbuck to focus on work. After a few months, the couple got internet installed at their home and wished they’d made the switch sooner instead of trying to penny pinch.

[See: 8 Big Budgeting Blunders — and How to Fix Them.]

The Great Coupon Mix-Up. When Crystal Stemberger, who lives outside the Houston area and blogs at Budgeting in the Fun Stuff, tried to use a coupon for kitty litter last year, she ran into an unfortunate snag. “[The cashier] rang up the coupons incorrectly, but I didn’t notice they had also rang up the wrong size of kitty litter,” she says. That error meant that Stemberger paid an extra $8 overall. “It was a ‘Doh!’ moment,” she adds. Whether you’re using a coupon or not, it never hurts to inspect your receipt for errors before you leave the store.

The Cocoa Worm’s Revenge: Bargain shoppers love stockpiling food and pantry staples when they go on sale. But that strategy hasn’t paid off for Chelsea Lowe, a professional writer and editor who lives outside of Boston. “Every time I’ve tried stocking up when a favorite item’s gone on sale, I’ve ended up throwing away most of the purchase,” she says. This summer, she bought about 20 stevia-flavor chocolate bars, most of them at half price. But cocoa worms got into the cabinet where she was storing the chocolate bars, and she estimates that she had to toss roughly half of the bars. Of course, cocoa worms aren’t the only potential problem with stockpiling; limited storage space, excessive heat or expiring foods can also foil a well-intentioned bargain shopper. Plus, if your storage area floods or you decide to move before using up the items, you could wind up wasting money.

[See: 25 Fast Financial Fixes.]

The Newlywed Bed Debacle: Last year, when Bailey Cummins and her new husband let family members know they were looking for secondhand furniture, one relative offered a mattress and box spring. “Unfortunately, we discovered a few months later that we had bed bugs,” Cummins says. She’s not sure if they came from the mattress and box spring or the temporary apartment where they were staying before moving into military housing, but they wound up tossing the mattress and box spring and buying new ones. Fortunately, because they’re now in military housing, pest control was free, but the incident still caused a major headache for the newlyweds, who live in the Midwest. Cummins took it in stride. “It makes for funny stories that we’ll look back on when we’ve been married for ages,” she says. But if they’d had to pay for pest control themselves, it could have been cheaper and easier to buy a new mattress from the start.

Before you drive out of your way to save a few bucks or otherwise economize, Aliche suggests asking yourself: “Does it diminish another part of my life?” If the sacrifice is too great or involves health or safety concerns, you may want to cough up the extra cash and cut back in other areas instead.

More from U.S. News

12 Ways to Be a More Mindful Spender

10 Foolproof Ways to Reach Your Money Goals

12 Money Moves to Make in 2017 to Retire Happy

Frugal Confessions: When Saving Money Backfires originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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