Since money was invented, people are doing their best to acquire it. And there’s no wonder why…the abundance of money in one’s pockets equals freedom, even though many people see money as the “root of all evil”.
Money has always been hard to earn. If you are an employee, you have to trade off eight hours each and every day in order to put food on the table. If you do the math and check the latest studies, 1/3 of your life is spent at work. If you’re an entrepreneur, you might work even more than that.
So, let’s draw a conclusion. Most of our lives are gravitating around money, and without it, we wouldn’t be able to survive today.
This leads me to an important question: how well are you managing your money? Are you treating it with respect? Are you neglecting it? Are you mistreating it? Are you…wasting it?
In today’s post, we’ll discuss 7 common ways in which people waste their money without realizing it. If you happen to commit one or more of these mistakes, you should immediately reconsider changing your behavior. Here are the seven ways you might be wasting money right now:
1. Taking Advantage of Special Deals
When you’re shopping online or offline, you’ll come across a lot of special deals, discounts, and coupons. For example, $1 products that would otherwise sell for $10 are extremely tempting. The fear of missing out is a common effective strategy used by brands to trigger quick emotional buying responses.
When you buy a $1 product that you’ll probably never use, you are basically wasting money. If you buy some unhealthy products because they’re at discount, you are sacrificing your health. In the long term, the medical bills will cost way more than the money you have saved when purchasing that product.
Obviously, if you have a well-defined grocery list and the products that you’re looking for have a good promotion, you should go for it. However, never fall in their trap unless you absolutely need what you’re about to buy.
2. Buying Impulsively
Impulsive shopping is one of the quickest ways to run out of budget unexpectedly. You think you know what you have to get, but that great jacket you’ve just noticed is smiling heavily at you. You buy it, and so your planned budget is gone. You now have to get more money to buy what you actually need right now, like food or other necessary stuff.
If you want to be money saver, you should acknowledge your impulsive purchasing behaviors. Whether you do it online or offline, spending money on things that immediately promise pleasure, status, or appreciation from others will never help.
3. Forgetting About Subscriptions
Last year, you might have subscribed to a service that was relevant to you. The price was so small, that you haven’t even paid much attention. Five dollars per month for this immediate solution? Great, you said.
A year passed, and a lot of money is missing from your bank account. You might be thinking that it’s a problem with your bank, or some hacker stealing your money. When you check, you realize that you have five running subscriptions that “steal away” over $100 dollars each month.
Subscriptions – never forget to cancel them as soon as you stop using them!
4. Using Your Card Too Much and Paying ATM Fees
Using a credit card all the time might bring a tricky and unexpected disadvantage. Leveraging your credit card is easy and quick – you just tap the card and boom; the exchange is made. On the other hand, when you use cash, you feel something different because you actually feel the trade-off. You realize that you’re exchanging your hardly earned money for the product in front of you.
Therefore, using your card is not always in your advantage. Your purchasing decisions might be influenced by the convenience and simplicity of the trade, and that’s never good when you want to save money. On top of that, ATM fees can cost you a lot throughout an entire year, so make sure you always use your bank to perform operations.
5. Eating Out and Buying Too Many Drinks
Eating out and buying too many drinks while can significantly hurt your budget. Think about it. When you’re at work, how many coffees are you buying each week? How about each month? How about each year?
When you go to a restaurant or at a coffee place, are you used to ordering bottled water? For water, $2 or $3 is a heavy price. Instead, you can carry your own bottle of water, your own bottle of coffee, and maybe some sandwiches in case you get hungry. Prepare for these needs at home, and you’ll save a lot of money along the way.
6. Buying Too Cheap or Too Expensive Products
If you choose a cheap product over an expensive one, you’re often sabotaging yourself. I’m not talking about choosing a brand name over a no-name because big brand products often offer the same (or less) quality and value.
I’m strictly talking about choosing something cheap that’s much more likely to become broke sooner than you expect. Electronics are a good example – if you buy second hand, you might find yourself throwing that piece of technology in a matter of weeks. Any guarantees? No.
However, if you seek clothes, buying at second hand is not a shame, and it’s surely going to help you save more bucks. If you seek furniture, a car, or a bike, buying them at second hand is quite advisable!
7. Paying for Things You Can Do Yourself
When I was a college student, I used to outsource all my assignments using EssayWritingLand, a student-friendly service that helps you “get rid of” academic assignments.
After many satisfying tradeoffs, I came to realize that I was spending too much money on something I could do myself. I replaced the habit and soon I’ve become richer.
We all have our commodities. If we allow them to thrive and influence our purchasing decisions all the time, we might be wasting a lot of money without even realizing it!
All of us crave for more money, one way or another. We may work overtime for it, we may sacrifice a relationship, or we may damage our health, only for money. But when it comes to saving it instead of earning it, we become negligible. If you are wasting your money, stop right now. Respect it and reap its positive benefits in a better way!