Stop Wasting Money

Whether you’re drowning in debt or trying to build a savings account, the last thing you want to do is waste money. Even when you’ve scrutinized and cut your budget, there are usually additional ways to squeeze out some additional money. It just takes some motivation and an open mind to really evaluate how and where you spend your money and then make changes. Imagine hiring a credit counselor or budget expert to your house to observe your spending habits for a couple of days. He or she would definitely be able to zero in on some areas that need improvement. 

Wasting vs. Frivolous
Generally speaking, wasting shouldn’t be confused with frivolous spending. Frivolous spending is when you buy luxury items you don’t really need and you could be saving the money or paying off debt. For those who are having financial trouble, hopefully you’ve already eliminated frivolous spending. Wasting can be looked at as “giving away” or “burning” money. This is when you don’t get anything in return, like late fees on a credit card bill, or when you pay full price for something when you could have waited for it to go on sale. 

Here are some areas where many people waste money:

• Late fees. Paying your bills late is one thing that doesn’t need to happen. It’s extra money utility companies and credit card companies get for free. Think of it as just giving your money away. It can really add up, especially when some late fees are as much as $30, even if your payment is one day late.
• ATM fees. Most banks charge their customers fees every time they use an ATM machine from another bank. With better planning, you can completely eliminate these fees.
• Grocery stores. Don’t just choose products based on fancy packaging or the name because they’re probably more expensive. Next time, consider generic brands or store brands. In most cases, they’ll be sufficient. Don’t forget to use coupons when you can. No need to give your money away.
• Insurance. Make sure you shop around every year for car and homeowners insurance prices. You may find the exact same coverage at another company for a lower premium.
• Over-buying. This is so common now, especially with cell phones. People are paying for minutes they aren’t using, even up to 50%! Evaluate your contracts for phone and cable t.v. — there might be room to save some money. Over-buying happens with other products too. For example, if you’re shopping for a regular lawn mower and you come home with a riding tractor/mower. You can barely fit it in your garage and your lawn is too small. Watch out for extended warranties on cars and appliances—you don’t really need them.
• Overpaying. Shopping at less expensive stores and avoiding “designer” brands can save you a lot of money. Just because something costs less doesn’t mean it’s not good.