When it comes to money there are a lot of ways to spend it. It can be easy to find yourself with a pocket full of cash and only moments later have a pocket full of nothing. For some, the idea of being careful with their finances isn’t even a thought that has crossed their minds. Whether they were born into money and don’t know the value of having to earn a dollar, or whether they simply were never taught how to budget, learning how to carefully spend your money towards useful things is essential.
In a world full of starving people, why waste money towards useless things when you can put it towards something that goes towards your future. When it comes to people wasting their money here are the most common ways.
Impulse Sales Shopping
Some people are actually addicted to the thrill of getting a good deal. They come across a sale and can’t seem to hold back the urge to buy it because of the cheap price and value they are convinced they are getting out of the transaction.
Even though you may be getting a good deal, it’s important to ask yourself whether you really need this item or not. Once you are honest with yourself you will be able to make a better decision about whether you should make the purchase or not.
Financial experts recommend stepping away for at least an hour before deciding to buy something impulsively. If you still think that you would have the use for it after that amount of time. You are less likely to make a purchase which is going to go to waste.
Memberships They Don’t Use
Many people have subscriptions and memberships which come out of their bank account monthly, however, they don’t even remember it’s there. One of the biggest culprits is a gym membership. Many people are motivated to start a weight loss program only to find that after a few days it requires a bigger commitment than they are willing to make and therefore stop going.
However, once they have entered a contractual agreement they are no longer able to get out of the cost. It then ends up coming out of their account each month for nothing. Before getting yourself into a monthly payment commitment ask yourself whether you really think that you will have the use for it long term and if it’s worth the cost if you don’t use it.
Overdraft Fees And Late Payments
Those pesky bank fees get thousands of people a day. Usually these fees are an average of $25, however, they can be as high as $75 depending on your financial institution. Rather than putting this money to waste, consider signing up for auto payments or putting reminders in your phone calendar.