4 unnecessary wastes of money we tend to ignore
Source-Pixabay
Managing debt is something most American households need to work on. Generally, the average Western household has around $133,000 worth of debt. If you feel like you are losing the battle with the debt you have, now is the time to figure out how to attack this problem and follow a reasonable guide on retirement planning. Developing a budget and eliminating wasteful spending is a step in the right direction.
Before you are able to remove wasteful spending from your life, you will have to identify it. Being able to spot wasteful spending can help you keep more money in your pocket. Here are some unnecessary wastes of money that most people tend to ignore.
1. Consistently using credit or debit cards to make purchases
Throughout the course of your week, you probably spend money on a number of essential things. Most people fail to realize how they choose the pay for things like gas or food can cost them money in the long run. If you are consistently using your credit or debit card to make purchases, you need to think about stopping this practice to save a few dollars.
Regardless of how good your credit card interest rate is, you are still paying money to use it. While debit cards don’t have interest rates attached to them, there are a number of fees you may have to pay. For instance, if you withdraw money from an ATM that isn’t provided by your bank, they will charge you a few dollars for this convenience. The best way to eliminate this wasteful spending practice is by getting out some cash and using it during the week.
2. Wasting money on high energy costs
If you are a homeowner, having a budget in place is crucial. When developing your budget, you will need to write down all of your monthly living expenses. In most cases, electricity bills are one of the largest expenses homeowners have. If your electricity bill has gotten outrageous, chances are it is time for an energy audit. Allowing professionals to inspect your home and pinpoint sources of energy waste is essential.
Home windows and doors that are not properly sealed will allow a lot of air to escape. Allowing these drafts to persist will result in the overworking of your HVAC unit. Using caulk to seal these drafts is the best way to fix them once and for all. The time and money you invest in fixing these issues will be worth it considering the money it can help you save.
3. Compulsively shopping is a horrible idea
Life as an adult has plenty of ups and downs. When you are having a particularly bad day, you need to work on finding a way to improve your mood. One of the biggest mistakes some people make is turning a bad day into a reason to shop for things they don’t need. Using shopping as a way to fill a void in your life will result in a house full of stuff you don’t need and lots of debt. Instead of compulsively shopping, you need to find healthier ways to improve your mood.
Doing things like working out or going to dinner with friends and family members is a good way to put a bad day behind you. If you want to put your money to work, take the capital you were going to spend on frivolous purchases and invest it in a high yield savings account. By doing this, you can allow your money to grow over time.
Source-Pixabay
4. Eat at home instead of going out
Are you eating out multiple times a week? While going to a restaurant or a drive-thru may be easier than cooking at home, it can also lead to a lot of money being wasted. If you are looking for a way to save more money, then cooking meals at home is a great option. By cooking at home more, you can eat healthier while saving money. With all of the cookbooks and culinary YouTube videos on the market, finding great recipes should be simple.
Take control of your wasteful spending habits
Ignoring the need for changes to your spending habits can lead to financial ruin. This is why taking control of your finances and creating a strict budget is so important.
