In this day and age, we have gotten very financially irresponsible. We complain about how “broke” we are yet, we’re not exactly doing anything about changing our financial situation either. If you were to sit with a financial advisor and they had you write down everything you spend your money on for the entire month, they would look at you like your parents would look at you when you’ve disappointed them. So the question to ask yourself is, “where is your money going?”
Photo credit: Maitree Rimthong
A lot of times, we as humans, get “want” and “need” confused and use the two terms out of context and interchangeably. You might go to the mall and see a really cute pair of boots and say “man, I really need those boots!” It’s one thing to “need those boots” if you don’t have any winter boots to keep your feet warm during the winter months but it’s a totally different story to “need those boots” when they go with a really cute outfit you just bought!
According to Psychology Today, around one-third of Americans have more credit card debt than they have in their savings account. The article further states that behavioural economics gives better insight as to why people spend too much and also why people waste money. Luckily, the same financial fitness hacks made for millennials are also fitness hacks that anyone can follow.
As you go about your day, try to pay attention to some of the things you’re spending your money on. If any of your spending habits appear on this list, consider implementing the practical solutions… your wallet will thank you for it.
Stop Wasting Your Money On These 7 Things
Late fees are not only an unnecessary expense to give your money to but they also can significantly damage your credit health. To avoid paying late fees and potentially damaging your credit, consider, enrolling in automatic draft payments. This will prevent you from ever incurring any late fees.
With certain companies, enrolling in automatic payment will give you a discount on your bill so you’ll not only be able to prevent late fees but also get savings on top of that!
Name-Brand Grocery Items
Lots of people seem to think that only name-brand foods are of good quality… well, if you compare ingredients of a name-brand product and an off-brand product, you’ll quickly find out that the ingredients are all the same and all you’re paying for is the name. So don’t get caught up in the name of a particular grocery item. Off-brand products offer comparable quality and cost a lot less.
Whether you live alone or have a family, during certain months, you have the luxury of leaving the AC alone and letting mother nature be your heating and cooling agent. Open your windows during the spring and fall to catch the nice breeze that blows. If you have ceiling fans turn those on for a bit to let the cool breeze circulate throughout your home.
You can also save by using LED light bulbs and by leaving your thermostat slightly above or below what the actual temperature is outside, especially when you’re not home. For example, if it’s 80 degrees outside, you can leave your thermostat on 78 degrees and it will feel much cooler in your home than it feels outside.
Buying Everything New
Everyone seems to think that buying everything new is best. Well, newsflash, it’s actually not. There are so many items you can buy that are slightly used that look and function as a new item would. Take cell phones, for example. People will spend thousands of dollars on a new iPhone when they can buy the same iPhone for half the price. So don’t get so caught up with “new”… there are plenty of used phones of high quality out there. The same thing applies to cars, furniture, and clothes.
Where are you trying to get to in such a hurry? Slow down or leave early enough to get to your destination in a timely fashion… traffic tickets are the most unnecessary thing to waste your money on because they’re completely preventable.
Eating Out All the Time
Get in the kitchen and start cooking more. The convenience of eating out as often as you do is costing you hundreds of dollars each month. It’s perfectly fine to grab a bite to eat here and there but to make a daily habit of it is absolutely irresponsible, especially for things like sandwiches when you can easily get sandwich supplies for the amount of one sandwich at a dining establishment.
So stop being lazy, go to the store and buy some off-brand products and make some of the best meals your taste buds have ever experienced… all at a reasonable price! And if you don’t know how to cook, you can always consult with America’s all-time favourite, YouTube for cooking tutorials!