5 Ways You Are Wasting Money Without Realizing It
Whether you’re trying to get out of debt or you’re saving for a big purchase, chances are you are not where you want to be financially if you’re reading this.
There are several ways you can change your financial situation, one of them being cutting expenses. And one of the easiest ways to cut back on your expenses is to find ways to save on things where you are probably wasting money. By making a few small changes, you can save big and reach your financial goals.
Give these tips a try to cut back on expenses, then you can put your savings aside for something that really matters.
You may not realize it, but every time you plug something in, it costs you money, even if it’s not turned on. With an overload of technology in our homes, it’s easy to forget that all the items that are plugged in will actually raise your electric bill.
Make an effort to unplug as many electronics as you can when they are not in use. Here’s a hint, even if it’s turned off, if you see a glowing light from the unit or the charger, it is using electricity.
Cable is expensive and, these days, unnecessary. There may be some shows you enjoy, but you don’t actually need them to survive.
Consider getting rid of cable, or at very least going with a basic plan, if you want to save money. Or try a subscription service like Netflix or Hulu.
- Grocery Shopping
While there are many ways to save money on grocery shopping including meal planning, looking for deals ahead of time and sticking to your list, one of the best ways to save is where you shop. Regular grocery stores can be expensive compared to discount grocery stores. And unless you’re price shopping, you may not realize this.
Try shopping at stores where they are known for lower prices like Trader Joe’s and Aldi.
- Credit Card Interest
Not paying off your credit card bill every month is one of the fastest ways to get into debt and waste money. This is because credit cards have a high interest rate and it compounds over time, increasing your balance. So, if you only pay the minimum balance, you are throwing money away in added interest fees.
Try to pay your cards balances in full every month. Or better yet, don’t use them.
- Banking fees
Any time you pay an added banking fee, you are wasting money. This goes for ATM fees, monthly account fees, overdraft fees, or investment fund fees.
Avoid them as much as possible. If you’re going away, bring cash to avoid ATM fees. Make sure you always have enough in your accounts to cover your expenses so you don’t get hit with overdraft fees. Review your statements each month to look for any unexpected fees and question them with your bank.
The thing to keep in mind when cutting your expenses is remembering that your financial goals are a high priority. Ask yourself if the expense is more important than your financial goal.