People are always thinking about ways to make more money, but what about ways to save money? We all want to keep up our standard of living, but sometimes, it helps to cut back on a few things that can easily break the bank. We like to buy things for ourselves when we get money, but sometimes it’s better to keep that money.
Think about how much extra money you would have if you cut back on your spending for just one month. You could put that money towards investments, savings, and emergency funds. It takes a lot of work to keep your money, but you’ll get a lot back in the end.
So, let’s talk about a few ways you might be wasting your money so you can be more aware of how you spend your money. This way, you’ll have more control over your money instead of having it control you. Here are 15 habits that most people don’t know to lose money:
1. Having an account at a bank
In the current world, everyone needs a bank account, but did you know that your bank account could be costing you extra money? Some banks now make you pay just to have a checking account. Some only charge if you don’t keep a certain minimum amount in your account, but others charge just to keep an account open.
Also, watch out for fees for going overdrawn or not having enough money in your account. These can really add up over time. If you stick to a budget, you won’t have to pay these kinds of fees to the bank. This lets you keep more money for yourself.
2. Paying too much for bills each month
Spending less is one way to have more money. If you don’t want to waste money, you should stop paying for things like TV that you don’t really need. Then, look at your other bills, like those for water, power, and cell phones.
Leaving your phone or laptop plugged in for too long can drain the battery. If you leave your devices plugged in after they are fully charged, this “phantom electricity” can add $20–$30 to your energy bill. Have you got the most expensive plan for your phone? Try to move to one that costs less, or if you have to, switch providers.
Lastly, take a look at your other bills, like water and insurance, and see if you can find ways to lower them. Most people could probably save money by cutting back on their regular bills, but they don’t know how! Look at your bills to see where you can save money.
3. Going out to eat instead of making meals
With so many places and services that bring food to us, cooking is becoming a lost art. But going out can drain your bank account in a big way. In fact, a study from the Bureau of Labour Statistics says that the average family spends more than $3,000 a year on takeaway. Taking that number and dividing it by 12, you get about $250 per month.
Forbes made a cost comparison of getting delivery from a restaurant, cooking at home with fresh ingredients, and using a meal kit delivery service. They found that ordering delivery costs almost five times as much as cooking at home and almost three times as much as using a meal kit delivery service.
When compared to cooking at home, eating out is a big waste of money, as you can see. This doesn’t mean you should never eat out, but if you want to save money, you should try to do it less.
4. Buying fruits and veggies that are already packed or cut
Most grocery shops have many fruits and vegetables that have already been washed and put into plastic bags for your convenience. You might even see cut-up carrots, watermelons, and other fruits and vegetables in tubs.
If you choose those, you’ll lose money because you’ll be paying for the packing. Buy fruits and veggies as close to how they grow as you can. You’ll get the best deal that way. Choose whole carrots instead of chopped carrots or leaves of lettuce instead of lettuce in a bag. This choice is also better for your health.
5. Not reducing debt
Unfortunately, a lot of people spend way more than they can afford and end up with a lot of credit card debt. In fact, the average credit card debt for a family is almost $17,000, which is just a small part of most people’s total debt.
In order to give you a full picture, the current report from the Federal Reserve says that the average American household owes a huge $137,063.If you have any debt, you should pay it off before anything else. Set aside any other bills and use all of your money to pay off that loan. This way, you won’t have to worry about it and pay interest on it for years.
6. Too often, the use of credit cards
As we already said, the amount of credit card debt is at an all-time high. An annual Experian study shows that the average American has $6,375 in credit card debt, which is 3% more than last year. Many credit cards have high-interest rates, so you should only use them when you have to.
7. Buying coffee before work every day
If the long lines at Starbucks don’t make you think twice about buying coffee, maybe this shocking fact will. Acorns Money Matters says that 41% of millennials spend more money on coffee than they do on their retirement plan. About $1,100 a year, or $3 a day, is what Americans spend on coffee.
8. Buying new rather than used
Did you know that a new car loses 10% of its value the moment you drive it off the lot? On average, a new car loses 60% of its value in the first five years. Used cars also lose value, but generally much more slowly. It’s not necessary to buy everything brand new. Also, reusing something is much better for the world than buying a new one.
9. Buying guarantees that last longer
If you don’t read the warranty’s small print, you could be throwing away a lot of money. Most warranties don’t cover big problems with an appliance or car, and if you buy more than one, you might be paying for the same security twice. Make sure that you only buy guarantees if you think they will help you.
10. Buying things on the spot
Ever wonder why candy, gum, chips, and drinks in shops are near the checkout lines? They hope that you will add something to your cart on a whim at the last minute. It’s a good way to sell, and it works. Five out of six Americans buy things on the spur of the moment. If you want to stop doing this, stick to your food list or do your shopping online, so you won’t be tempted at the checkout.
11. Buying things with a brand name
As an example, let’s look at drugs. Compared to the generic name, Advil is probably a couple of dollars more expensive, even though it has the same ingredients as the cheaper one. This is true for everything, including clothes, food, and medicine. Always buy the generic version because you’ll save a lot of money.
12. Not having a plan for money
A budget gives you a plan for how your money works. If you don’t have one, you won’t know where your money is going or how much you have left, which means you’ll probably waste a lot of money in the end.
13. Putting things off.
Some things are better to buy ahead of time, like plane tickets and hotel rooms. You already know that prices for plane tickets and hotels go up a lot closer to the date of leaving, so try to buy these things as early as you can.
14. Don’t use freebies
When you go food shopping, you should look through the weekly ad for coupons or deals. If you don’t, you might miss out on some great deals. Also, you can get deals for everything from mini-golf to a day at the spa by downloading apps like Groupon. There are coupons everywhere, so if you don’t use them regularly, you’re throwing away a lot of money.
15. Not going to the gym you pay for
So, it’s the start of a new year, and you’ve decided to get healthy. A lot of people have this goal at the beginning of the year, but they don’t finish it. Did you know that about 67% of people who join a club or organisation never use it? If you have a gym contract that you don’t use, you should cancel it right away so you don’t keep losing money.
Source: www.powerofpositivity.com