Bundling is a common practice throughout a number of different industries and for good reason: it can save you a lot of money, so it’s quite popular.
However, there’s a reason service providers also love bundling. Unfortunately, it’s one that could also strip your retirement savings considerably if you’re not careful.
What Is Bundling?
We don’t mean to imply that bundling is some kind of scam. As we mentioned at the beginning, it’s a very common practice. It refers to companies giving discounts to customers who purchase several services at the same time.
One very common example is an insurance company that gives you a discount for going through them for your auto, home, and life insurance policies.
The problem is that it’s all-too-easy for many people to be taken in by the perceived savings associated with bundling when they don’t actually need the additional services to begin with.
Why Baby Boomers Are Likely to Become Victimized by Bad Bundling Practices
The “Bundle Hustle”, as it’s been called, affects Baby Boomers the most because, frankly, many of them don’t know any better.
Instead of being sold on the idea that they’re getting more by signing up for a bundle, they are often led to believe that this practice is their only option.
For example, if you try to pay your cable bill but don’t have your phone service through the same company, it might be suggested that this is causing unnecessary problems. As such, you sign up for a phone with the company and perhaps another service, as well.
Other times, unnecessary devices get added to a deal (e.g. a tablet), but the customer doesn’t understand that it will come with a monthly bill for the new network they just signed up for.
In short, many Baby Boomers simply don’t understand what they’re getting themselves into. Whether the salesperson means to or not, Boomers are easy to trick into the Bundle Hustle because they either think they don’t have any other options or they don’t understand the fine print involved.
Bundling Costs Can Quickly Add Up
When you consider the cost of devices and all the ancillary services that can accompany them, bundling can quickly cost hundreds of dollars a month.
We’ve mentioned before how something as simple as cable TV should be cut in order to set more money aside for retirement. So going in the exact opposite direction by adding $100 or more to your monthly expenditures is definitely a bad idea.
The Final Word on Bundling
Financial planning should always involve looking over your regular expenditures to make sure they’re necessary. At the very least, you should keep your eyes open for options to reduce these costs.
Bundling is a good example of an expenditure that deserves regularly scrutiny. As you’ve just seen, this well-intentioned practice can quickly become a serious burden.
If you’d like help with this type of review, contact Mooney Lyons today. We can also advise you on major purchases before you make them to keep this type of problem from happening in the first place.