It’s been said that the easiest way to make money is to keep the money you have. Saving money is a sure way to make sure you have it when you need it, yet so many of us waste it on things we want or spending too much on the things we need.
By cutting waste you’re saving yourself money, decreasing your consumption and running leaner. If you were a business your shareholders would love you because profit would jump up!
Some of the most common ways that you can stop wasting your money include:
1. Late fees
Your phone company, the credit card company, and even your landlord love it when you’re late, especially by just a day or two, because they can sock you with big fees. Even popular video stores like Blockbuster make a ton of money just by people returning their videos late.
If you plan on staying in an area for more than five years and the market isn’t very volatile you’re wasting money by renting. You should consider saving for a down payment and purchasing a home so that you build equity rather than making your landlord rich.
Some may argue with me about this one, mostly the poker players, but for those of us who play slots, craps, bingo, blackjack, or any other game where the odds are rigged (even if you play perfectly) you’ll be wasting your money. Once in a great while it’s not horrible to stick a few quarters in a slot machine, but if you’re at the casinos every weekend you’re most likely wasting your money.
If you purchase a product for because it has a mail-in rebate and don’t participate you’ll end up paying more than you thought you would. Companies hope that you wont’ send it rebates and often make it a challenge to get your money even if you do.
5. Impulse Buys
You know you’re guilty but it makes you feel good for a few minutes. Store displays are designed to make you buy. Ignore them and shop online if you can.
6. Not Price Matching
If you use the power of price matching at a big box store like Wal-mart, you don’t even have to clip coupons anymore since they price match everything. Just write your grocery list, look at the sunday ads for the best prices and write the prices next to the items you’re buying so you can let the cashier know.
7. Buying Because it’s on Sale
Just because something is a great deal doesn’t mean you need to get it. If you don’t need, or even really have a strong want for a particular item, it’s most likely a waste. Thrift stores are a great place to buy cheap things that you don’t really need.
Do you have a gym pass, phone plan, or software product that you pay monthly fees for, but almost never use? Chop these fees away to decrease your waste.
9. Hurting Your Credit
If you decide to not take your credit seriously by paying your bills late you’ll pay real money in the future when it comes time to negotiate your mortgage, or automobile loans. Small changes in interest rates on big products mean big money over time.
By cutting waste in your finances you’ll have more money to save, invest, and grow your net worth. This will allow you to build up your cash reserves and have more financial security. Decrease your waste today to have more peace of mind down the road.
Image from epsos