Are you finding your wallet a little lighter at the end of each month, and wondering where all your money has gone? You’re not alone. Many of us are guilty of wasting money on things we don’t need, or aren’t making the most of. Here are the top 10 things people typically waste money on, and how you can stop.
1. Buying Name Brand
The design may be more appealing, but that doesn’t necessarily mean the product is better. Or, that it’s any more healthy for you than the other brands. Store brand groceries cost an average of 27% less than the name brand, so this is an area where you can definitely save money. Do your research, test out the store brand, and see what you think.
Save Money Here: Generic and store brand products are usually the same. The price added to the high-cost brand name usually has to do with their marketing costs or how much the company paid for the pretty wrapping you’re looking at. Don’t get me wrong, there are some things that neither I, or my team, will get generic of. But, there are some cases where the brand name means nothing. It’s worth checking out.
2. Cable TV
Cable is expensive. Do you really need all those channels? What do you watch? Most people pay at least $100 per month on their cable bill. But, what if you didn’t have to pay that much for what you wanted to watch?
Solution: Netflix, Hulu and Amazon Prime have tons of free channels and movies. Check to see if what you watch is on any of those streaming options. If it is, you can save some serious dough by getting a membership and cancelling your cable.
3. Impulse Purchases
We’ve all been tempted by items we don’t need. That steady stream of Prime packages coming in could be seriously affecting your wallet. No judgement here. I am definitely guilty of being a Prime junkie from time to time. But, this is an area that needs evaluated to save some cash.
Solution: Before you click that ‘buy’ button or grab extra items at the store, take a moment and ask yourself, “Do I need this?” If not, consider putting it back. That doesn’t mean you should never splurge. It just means you shouldn’t splurge all the time.
4. Your Daily Coffee
Daily visits to your favorite coffee shop may seem like a harmless treat, but when you consider the cost over time, it can be quite surprising. For instance, if you’re spending $5 every weekday on a coffee, that amounts to $25 per week, about $100 per month, and a staggering $1,200 per year. That’s no small sum!
Solution: So how do you break the habit without giving up your caffeine fix? The answer lies in home brewing. Investing in a quality coffee maker, espresso machine, or even a simple French press can make a world of difference. These tools allow you to make your favorite coffee beverages at home for a fraction of the cost.
Additionally, purchasing whole beans and grinding them yourself can improve the freshness and taste of your home-brewed coffee, making your morning ritual just as special, if not more so, than that daily trip to the coffee shop. And not to mention, you’ll save time by avoiding the queue. By making this simple switch, you can enjoy your daily caffeine fix and save a significant amount of money in the long run.
5. Financial Fees You Don’t Think About
Financial fees, such as bank account fees, credit card fees, ATM fees, and late payment fees can subtly and silently drain your finances. For instance, if your bank charges you $10 per month for a checking account, that’s $120 per year – money that could be better spent or saved. Similarly, credit card late fees and high-interest rates can add up quickly if not managed properly.
Solution: The solution to this financial drain is vigilance and good management. Regularly review the terms and conditions of your bank accounts and credit cards. If you’re being charged monthly maintenance fees, consider switching to a bank that offers free checking. Avoid ATM fees by using your bank’s ATM network or choosing a bank that reimburses these fees.
Pay your credit card bills on time to avoid late payment fees and to minimize interest charges. If your current credit card has high annual fees, consider switching to a no-fee card, especially if you are not fully utilizing the benefits associated with the fee. By staying on top of these often overlooked financial drains, you can potentially save hundreds of dollars each year.
6. Do You Use All Your Data on Your Phone Plan?
Excessive data plans can lead to unnecessary expenditure that accumulates significantly over time. For instance, if you’re paying for an unlimited data plan but only use a fraction of it, you’re essentially wasting money each month. This could amount to hundreds, if not thousands, of dollars annually.
Solution: To curb this, it’s vital to regularly evaluate your actual data usage. Many mobile service providers offer detailed usage statistics that allow you to track your monthly data consumption. Once you know how much data you typically use, you can downgrade to a more suitable and cost-effective plan.
Also, make the most of available Wi-Fi networks, especially at home, work, or other frequent locations to save on data. Be sure to secure your Wi-Fi connections to prevent unauthorized access. By carefully managing your data usage and ensuring your plan aligns with your needs, you can save a substantial amount of money over time.
7. Your Unused Subscription Services
Subscription services, whether for streaming platforms, magazines, or software, can quickly become a financial drain if not properly managed. An unused $15 monthly subscription might seem small, but over the course of a year, it’s an unnecessary expenditure of $180. Multiply this by several services, and the numbers can be astonishing.
Solution: How can you stop this? The key lies in diligent monitoring and regular assessment of the value you’re getting from these services. Make a habit of periodically reviewing all your subscriptions – many of which are often set to auto-renew – and evaluate whether they’re still serving your needs or interests.
Cancel any service that you don’t use regularly or that doesn’t provide sufficient value for its cost. Free trials can also be a trap if you forget to cancel before the trial period ends, so always set a reminder to avoid being charged. By implementing these strategies, you can ensure that every dollar spent on subscriptions is a dollar well spent.
Good Financial Future
Remember, the key to saving money is mindfulness. Pay attention to where your money is going, and ask yourself if you’re getting value from your expenditures. With these tips, you’ll be well on your way to a healthier financial future.
