Have you ever asked yourself if you could be spending your money more wisely? Do you find that no matter how hard you try, at the month’s end, you have next to no money to show?
What if you are told that there are 7 things you could cut from your budget that will save a significant amount of money? Not just that, but it will make you save money every month, helping you reach your financial goals much sooner.
Let us see what those 7 things are:
Banking Fees
Have you ever looked at your bank balance and wondered where all these small charges came from? These charges are likely convenience fees and these types of fees are like someone picking money out of your pocket monthly.
These fees are usually the costs of withdrawing, transferring, or exchanging money. And while a couple of dollars here may seem harmless, paying $50-10 dollars a month adds up to the worry. Think about it. That is the cost of a Netflix subscription every month that you just freely handing over to the bank.
As soon as you realize how much unnecessarily the bank is charging you, stop it there and then. To avoid these charges, talk to your bank representative about changing your bank if they continue to deduct this much amount. The bank will surely cooperate with you.
Gambling
Going to casinos every Friday night will surely be your favorite game as soon as you turn the legal age. You would sit down on a slot machine, insert the money, and wish to strike the gold. Also, you might have more money than brains at that time. However, losing all of it is the point of concern.
On top of that, you do not have a high probability of winning the game. In fact, the odds of winning the game prize on a slot machine is on average 1 out of 49,836,032. Therefore, it is not at all a wise decision to spend a huge amount of money in the casino.
Unfortunately, many people fall victim to the perils of gambling. Whether they play to win big or just pass the time, gambling is never in favor of the player. That is the reason they say ‘the house always wins.’ Once you learn the odds of winning, you will never spend money on gambling ever again.
Credit Card Interest Charges
As of 2019, Americans are in over $1 trillion of credit card debt which is up from $850 billion just five years ago. Besides having outrageous amounts of debt, collectively, these people are paying billions of dollars worth of interest every year.
While credit cards can be a useful tool when used properly, many people fall victim to the vicious cycle of only paying the minimum balance. You see, paying the minimum balance only gets you so far. It can help you avoid ruining your credit score but each dollar of debt that isn’t paid off will be subject to an interest charge. Meaning that your original purchase just got costly.
For instance, if you have a $1000 balance on your 18% interest credit card and you only pay $100 minimum every month, then it will take you 11 months to pay off. Out of this, almost $100 of it is the interest. In order to never pay credit card interest, only charge your credit card an amount you know you have the money in the bank to repay.
Taking this one step further set up automatic credit card bill payments because even if you have the money on hand, failing to remember to pay your bill will cause that interest to start compounding. Now, if you already have credit card debt and are paying exorbitant interest charges every month, there is hope.
To avoid paying these extra charges, inquire as to whether you can move your debt onto a lower interest line of credit which will instantly cut down the interest expense of your debt. So, you can focus on paying the principal amount instead.
Cable
When was the last time you actually watched the show at its intended time? For most people, paying for the cable isn’t worth it.
Watching live television is a thing of the past. As of 2018, more than 33 million Americans have canceled their cable subscription. Also, they have opted to spend this money on cheaper entertainment outlets.
For instance, more than 150 million people are watching Netflix every month. Moreover, 90 million people are on Amazon prime and 55 million on Hulu. Using these streaming services is not only cheaper but they often have original content.
Other than that, you can watch your favorite shows on YouTube as well. It is a convenient method and free of cost. Therefore, cutting subscription of cable is one way to save money.
Expensive Gym Memberships
People get excited as the New Year rolls around, sign up for a premium gym membership hoping to make this upcoming year the year they get fit. Then, within a few months, they are back to their sedentary routine while their gym pass collects dust.
Statistics show that about 80% of the people who sign up for gym membership quit within the first 5 months. Even worse is that many of them become too embarrassed to admit defeat and continue to pay for the service they never use.
Now, a gym membership isn’t a waste for consistent gym-goers. However, even these people need to ask themselves if they are paying for more than they really need. Nowadays many expensive gyms mimic the feel of a spa and charge you accordingly.
If you want to save money while getting or staying fit, ask yourself, what is the real reason you go to the gym? Also, are there any other good options to consider?
Extend your Warranties
You are seconds away from completing your transaction when salespersons ask ‘did you want to get the extended warranty?’ Being a cautious person, you opt in to add the extended warranty, increasing the total cost by 50%. If this sounds worrisome, then don’t worry you are not alone.
In the 2018 survey, about 30% of respondents said that they opt for extended warranties. They do this on home appliances, cell phones, etc. Try not to take extra warranties. However, if you still feel like then before shelling in money ask yourself these questions:
-If this item breaks, then can you afford to replace it without financial duress?
-Does the product come with coverage from the manufacturer?
-Would buying a higher quality item outweigh the cost of adding an extended warranty to this purchase?
Trying to Impress People
Stemming from primitive times where tribe members would either be accepted by a group or die. Humans always had an inherent need to fit in. Over time, our ability to survive in the environment has become significantly easier. However, our need to be accepted hasn’t changed which has led to a culture of spending money to fit in.
Whether it’s buying a new outfit to impress a girl at school or purchasing a larger home to show off to your friends, spending to impress is not advisable. People will like you for your personality and not for brandish clothes.
But beyond making more connections with people, there are more benefits of avoiding this frivolous type of spending. For instance, when you don’t spend to impress, you end up saving more money. Instead of looking at rich, you can actually become rich.
To conclude, saving money will only make you rich. You can spend that saved money on something worth it. Do not spend it on banking fees, gambling, credit card interest charges, cable, and expensive gym membership, extended warranties, and trying to impress people. Refrain from spending on these 7 things to save money.
