These money traps will leave you out of pocket ‒ never waste your time on them.
Being proactive with the way you manage your money is crucial when it comes to making your cash go furthest.
If you don’t, it’s simply too easy to end up wasting cash.
Here are some of the products we don't think you should ever buy if you want to get the best bang for your buck when spending money.
Naff gift cards
Gift cards can seem like a simple option when purchasing a present for someone, but the reality is that they can be a serious risky move.
For example, if the retailer goes bust, then the gift vouchers will end up being worthless. We have seen a host of big-name stores hit the wall in recent years, leaving those with gift cards effectively out of pocket as a result.
But there can be a sting in the tail even if you opt for one of those ‘catch all’ gift cards, which can be spent at a range of different retailers.
If the money on the card isn’t spent within a while, then monthly fees kick in, eroding the value of the gift.
One member of the loveMONEY team found that a £10 gift card they had forgotten about was now worth a paltry £2 because of the impact of those fees.
Frankly, if you’re out of ideas for a present, you’re better off giving them cash. It can be spent anywhere and it never expires.
Extended warranties from retailers
When you’re purchasing an expensive product, like a car, then it can be tempting to sign up for an extended warranty.
After all, the manufacturer’s warranty will only cover you for a certain period, and if things go wrong after that you could end up facing significant repair costs.
The trouble is that extended warranties are often pretty poor value for what you actually get.
This is certainly true if the warranty is on offer from the retailer, rather than an independent provider ‒ when we bought a new car a year or so ago, the salesman spent ages trying to push their extended warranty but when I compared it to the cost of comparable cover from an independent retailer, it was about three times more expensive.
It’s also worth bearing in mind that there is already protection in place through things like the Consumer Rights Act which may help cover the cost of any issues, or at least allow you to get the product replaced should it go wrong.
Branded medicine
When it comes to medicine, it’s obviously important that you take the time to make sure the product you’re buying is suitable for your needs.
However, that doesn’t mean you need to cough up on premium, branded medicine ‒ the non-branded or own-brand paracetamol is not only cheaper than the branded rivals on the same shelf, but it’s also the exact same product.
Buying branded medicines in this way just means you’re coughing up extra cash for some fancy packaging.
Holiday money at the airport
We are in the midst of the summer holidays, so sorting out spending money for our trips abroad is a big consideration for many of us.
There are plenty of different ways to arrange that cash, but the worst is leaving it to the last minute and buying it at the airport before you head off.
The value is horrendous and means you’ll get far less bang for your buck, making your holiday even more expensive even before you get on the plane.
Check out our guide on how to get the best deal on your holiday money.
Premium fuel
A car is an enormously expensive asset, so of course you want to look after it. As a result, buying premium fuel to power it may seem tempting.
However, premium fuel is more costly and unless you’re driving a high-performance motor, chances are you’ll see next to no benefit from that extra outlay.
How to find the cheapest petrol and diesel near you
Service station fuel
And while we are only the subject of petrol and diesel, you should never fill up your motor at a service station.
The cost of fuel from these forecourts is absolutely despicable compared with what you’d pay at a regular forecourt, so don’t allow yourself to get ripped off!
Your credit score
It used to be a bit of a pain to check your credit report, involving singing up for free trials ‒ or even paying a monthly subscription ‒ to the likes of Equifax and Experian.
However, there are far more credit services out there now which allow you to get a good idea of your score, and what you can do to improve it, without having to spend a penny.
Given the importance of credit scores when it comes to borrowing, it’s a great idea to keep an eye on yours, and even better if you can do so without having to worry about cancelling free trials or even having to pay for the privilege.
Out-of-contract deals
There are all sorts of financial products where you sign up for a service for an initial period, but which continue after that period concludes, such as your energy supply, a mortgage, even things like broadband and mobile phones.
The cost is cheapest during that opening period, with costs then being increased thereafter.
With a mortgage for example you move onto a standard variable rate, while energy bills see you shunted onto a standard tariff.
The longer you spend with these deals once the initial contract has ended, the more money you will end up wasting.
It’s a smart move to keep an eye on when these contracts or opening periods come to an end, and then make sure that you shift yourself over to a better deal rather than throwing your money away.
*This article contains affiliate links, which means we may receive a commission on any sales of products or services we write about. This article was written completely independently.