Life

Often times we make purchases thinking it's a great deal and it will save us money, but that's not always the case. These items can actually make a dent on your wallet which makes it a bad buy. On the flip side, we might glaze over a purchase that is actually beneficial to our wallet. Our finance expert Rubina Ahmed-Haq has some examples of good buys vs. bad buys.

Non-stop Flights: Good Buy

If you're planning a vacation or going to visit family, you may look for the cheapest flight available. Unfortunately, the cheapest flights don't always depart at the best times, and you might deal with multiple layovers. While sitting at airports for six or seven hours, you'll do anything to kill boredom - browse airport gift shops and potentially buy things you don't need; spending your hard-earned cash on overpriced airport food or coffee; or give in and pay for airport WiFi. So, while a connecting flight might drop your ticket price, the money you spend while waiting around for your next flight could cancel out any savings.

Life Insurace for a Child: Bad Buy

This is particularly morbid, but insurers sell parents life insurance policies to indemnify them against the death of their children, primarily as a way to offset potential funeral costs.

Why it sounds savvy: Maybe your child will be the next Disney superstar, or the world's youngest astronaut. You've got to prepare for that, right? If anything happens, you want to be prepared.

Why it backfires: The possibility of the unthinkable happening is not very likely. Let's face it, fear is the engine that drives the insurance industry. Sometimes we fall for the false security of unnecessary insurance. If you are not rolling in disposable income, put your money in a mutual fund to save for your child's college education instead of insurance premiums.

A Vacation: Good Buy

When we are short on money the first thing to cut out is entertainment and holidays, but it's actually a mistake. Science shows we need breaks to be more productive. Just as small breaks improve concentration, long breaks replenish job performance. Vacation deprivation increases mistakes and resentment at co-workers. So go ahead, book your vacation now!

Credit Cards From Major Retailers with Significant Discounts: Bad Buy

Many merchants offer no interest loans for a period of time for big ticket items like TVs and appliances.

Why it sounds savvy: You get the item on credit, but then pay it off entirely before the interest kicks in? You're getting the cake and eating it too. You're beating the system!

Why it backfires: Many people use the "no-interest" lure not only as a temporary excuse for an impulse purchase, but also for postponing paying the bill. Also, too often buyers don't already have the money saved up before making the purchase on credit. It becomes a race against time to pay it off before interest adds up, a race many lose in the end.

Personal Trainer: Good Buy

Yes, you can workout on your own. But if you've been on a quest to lose weight or increase muscle tone for months or years to no avail, splurging and hiring a personal trainer can get the results you want. This professional actually tailors an exercise program specifically for you based on your abilities and fitness goals. The benefits of a personal trainer can't be overstated. You'll receive support and learn the right ways to complete certain exercises. Plus, with a personal trainer, you're accountable to someone which can help you stay focus and reach your goals.