Are you guilty of wasting money? We all are. Money is something you have to use wisely, and if you don’t know how to manage it, it will be wasted. Wasting money now could lead to problems down the road as well which can invite unwanted credit card debt. Let’s get off on the right foot and find out some of the biggest money wasters so we can slash them.
Eating Out
I love eating out – it is an enjoyable treat. But it is just that. A TREAT. Don’t make it the norm. Instead plan meals at home. Meals at home are typically healthier for you and are much more cost effective – especially if you have a larger family.
You can still treat yourself to a nice dinner (you deserve it). Just don’t do it too often.
Subscriptions
In today’s digital world, we have subscriptions for nearly everything. Amazon Prime, Disney+, Netflix, Hulu, Paramount+ – and that’s just a few entertainment subscriptions! There are technology subscriptions like Apple, Google, Microsoft, Playstation Network, XBox Live and so many more. Then there’s shops and other memberships you probably forgot about.
Take stock of each subscription and cut the ones you do not need. If you are undecided which subscriptions you might not need, ask yourself: When was the last time you actually used it? How often do you use it? Is it worth the cost? Is it worth the savings?
Chances are you can cut probably half the subscriptions from your budget and potential save hundreds of dollars per month.
Impulse Purchases
Having the discipline to say no to even good deals if you do not need it is an important skill to develop. Try shopping with a list, and sticking to the list when you go out to stores. If you are grocery shopping, NEVER shop when you are hungry. And before making any purchase that you weren’t considering, stop and ask yourself: is this necessary and worth the cost?
Extended Warranties
More often than not, extended warranties are not needed and are a waste of money. Typical manufacturers warranties cover a good duration of the product’s usefulness and common use cases. Plus, you might not even use the product beyond a few years. Always look at the fine print and find what the warranty covers and determine whether or not you actually need it.
Bulk Purchases
Bulk stores usually come with a subscription (See #2 on this list). Even if you get a great deal, it might go to waste if you don’t use it all before it goes bad or reaches the end of its useful life. Always consider how much of a product you buy in bulk you will actually use and see if it is worth the cost. The exception could be non-perishable food items or ones that can be frozen. But again, be smart about your bulk purchase.
Keeping up with the Jones Family
Keeping up with the latest trends is a surefire way to waste your money in a hurry. Not only is it expensive, it is also nonsense. It isn’t worth it to keep buying the latest trends, electronics or clothes especially if you are struggling financially. You can keep having fun experimenting with styles and being creative – but do so within a budget. If you want to keep up with some trends, try buying fashion second hand or used.
Gym Memberships
Do you think you are actually going to the gym as often as you are imagining? The membership sounds enticing when you first signed up for it, but in the end, that gym membership is just wasting your money. Use free alternatives like fitblendr to get in shape at home and on your own time.
Paying Too Much in Interest Charges
Interest charges are simply making someone else rich. Work to pay down debt and make more than minimum payments on your loans and credit cards to minimize the amount of interest you are paying.