A lot of people aren’t aware of how they waste their money on a regular basis. As a result, they don’t even realize that by making only a few small changes they could completely transform their finances.
Money isn’t something which can buy you happiness, it’s true. However, it can be an excellent tool for making you more comfortable if you’re already happy. You can use it to create experiences with the people that you love, enjoy luxuries like travel, and even by property and vehicles. Rather than allowing your money to control you, take control of your money by no longer wasting it. Here are some of the ways in which you may be wasting your money and how to stop.
Overdraft Fees
When you charge a transaction on your card, it doesn’t always come out immediately. Often it is a pending charge which sometimes takes upwards of a week or even more to post to your account.
As a result, a lot of people who fail to track their spending don’t realize that this charge hasn’t come out yet. When it finally does come out, they may find themselves overdrawn and with a fee attached. This fee might as well be money that you throw out the window into the wind.
There are two ways to stop this from happening. The first is to keep track of your spending rather than relying only on your online banking statement. Keeping a spreadsheet is the best way to keep track as you go.
Additionally, you should enroll in overdraft protection. That way you know that if you do overdraw your account, your bank will cover it as long as it’s a debit or ATM transaction.
Memberships You Don’t Use
A lot of people sign up for memberships and subscriptions which they never use. Even though it may only be a small sum each month, it adds up in the big picture.
Rather than seeing it as twenty dollars a month, see it as $240 a year. It helps to put the waste into perspective.
Impulse Buying
Escaping the temptations of commercialism can be difficult. So often we see a deal we can’t refuse or talk ourselves into buying something because it catches our eye. Realistically, you have no use for it, and it ends up gathering dust over time.
By practicing conscious spending and reflecting on whether you need it, you’ll be able to make better choices about where your money goes.
Coffee
Many people buy a morning coffee every day at their favorite cafe. It usually costs about $3-$4 on average which seems innocent enough. However, when you add up 365 days a year, you will realize that you’re spending between $1095 and $1460 on coffee.
Do yourself a favor and make coffee at home for a fraction of the price!
