You may be wasting money when you think you're saving. LearnVest shares eight of the biggest money misconceptions.
Frugalista. Recessionista. In the past few years, people have coined a lot of silly words describing women and their approach to money, but the thought behind each of them is the same: You care about your hard-earned dollars and want to make them stretch.
That's true of most of us: We scrimp, we pinch, we try to feed our proverbial piggy bank as much as possible. Yet sometimes, in our excitement to be financial overachievers, we overreach.
It turns out there are a number of things that sound like they'd be doing good things for your money, and make you feel like you're saving more . . . when, actually, they're having the opposite effect.
Paying Every Debt Equally
When you have multiple debts to pay off (a credit card here, a student loan there) you might feel like a rock star simply for keeping up with them all and dividing your attention in a lot of different directions. Which, in a sense, you are! After all, you should always pay at least the minimums on all your loans.
But, if you have extra money to pay down your debts, you’re doing yourself a disservice by dividing it equally. The debts with the highest interest rates grow the fastest, so you should focus your muscle on the most toxic debts first.