We all know that one person who is ridiculously good at managing their money. They never seem to spend more than they earn, they have a hefty savings account, and they’re always able to pay their bills on time. Then there’s the rest of us. We might be good at some aspects of money management, but we definitely have our bad habits too. And sometimes, it feels like we’re wasting money without even realizing it. If you want to start being more mindful about your spending, here are some common ways that people waste money without realizing it. Check out which ones apply to you – and try to make a change! We all know that one person who is ridiculously good at managing their money. They never seem to spend more than they earn, they have a hefty savings account, and they’re always able to pay their bills on time. Then there’s the rest of us. We might be good at some aspects of money management, but we definitely have our bad habits too. And sometimes, it feels like we’re wasting money without even realizing it. If you want to start being more mindful about your spending, here are some common ways that people waste money without realizing it. Check out which ones apply to you – and try to make a change!
- 1 Throwing Money Away On Layaway
- 2 High-Interest Savings Account Not Being Utilize
- 3 Attempting To Time The Stock Market
- 4 Ignoring Refurbished Goods
- 5 Not Opening The Open Box Savings
- 6 Paying Full Price For Gas
- 7 Paying Full Price For Anything
- 8 Not Utilizing Your Company’s Employee Stock Purchase Plan
- 9 Paying Checking Account Fees
- 10 Paying Sales Tax
- 11 Impulsive Shopping
- 12 Racking Up Balances On High-Interest Credit Cards
- 13 Conclusion
Throwing Money Away On Layaway
One of the most common ways that people waste money is by spending too much on unnecessary things. This can include anything from buying brand-name clothes to spending too much on eating out. And, one of the most common ways to do this is by using layaway. Layaway allows you to pay for something over time but often comes with high-interest rates and fees. This can quickly add up, especially if you’re buying something expensive like a TV or a piece of furniture.
High-Interest Savings Account Not Being Utilize
A lot of people have high-interest savings account in place in case of emergencies or major expenses. But, if you’re not using it to save, then it’s actually wasting money. At the very least, these accounts should be earning interest. If they’re earning nothing or almost nothing, then you could be losing out on a lot of money. High-interest savings accounts are especially important for people who have good credit scores because they make it easy to secure loans at low-interest huge rates.
Attempting To Time The Stock Market
It’s impossible to time the stock market. And, even if you could, it would be incredibly risky. For most people, it’s not worth the stress or the potential losses. Instead of trying to beat the system, put your money into a solid investment plan and let it grow over time. This is a much more sensible option and is likely to yield better results in the long run. The stock market is a gamble that most people can’t afford to take.
Ignoring Refurbished Goods
It’s easy to be drawn in by the shiny newness of things. But, oftentimes, it’s not worth the extra money. A good example of this is refurbished goods. These are items that have been previously used but have been restored to like-new condition. They can often be found at a fraction of the price of the new item. So, if you’re not too fussy about having the latest and greatest thing, then start looking for refurbished items. You’ll save yourself a lot of money.
Not Opening The Open Box Savings
One of the best ways to save money is to take advantage of deals and sales. And, one of the best types of sales is the open box sale. This is when a store sells an item that has been opened but is still in its original packaging. The reason these items are so cheap is that the store can no longer return them to the original manufacturer. So, when you see an open box sale, make sure you take advantage of it. You’re practically getting items for free!
Paying Full Price For Gas
Gas prices may seem like they’re not that high, but if you add them up over time it can be a real problem. If your job requires you to drive a lot then this costs even more. And, one of the worst ways people waste money on gas is by not shopping around for the best price. The price-per-gallon varies from one station to the next. So, make sure you pay attention when filling up your tank and switch stations when necessary.
Paying Full Price For Anything
Most people have a price in mind that they won’t go over. This is usually true when it comes to buying things like clothes and appliances. But, a lot of people forget about the extra costs that come with these items – taxes and installation fees. These can often push the price up well beyond what you had in mind. So, before you go out and buy something, make sure you know all the costs involved. That way, you won’t be surprised when the bill comes.
Not Utilizing Your Company’s Employee Stock Purchase Plan
A lot of companies offer their employees an Employee Stock Purchase Plan (ESPP). This is a program where employees can buy stock in the company they work for at a discounted price. Not all companies have these programs, but those that do give them to their employees as a way of increasing loyalty and morale. The best thing about this program is that it’s essentially risk-free. You can’t lose money on the stock, even if it goes down. And, you get to buy the stock at a discounted price. So what are you waiting for?
Paying Checking Account Fees
A lot of people don’t realize this, but most checking accounts come with a fee. This is usually a monthly fee that can add up to a lot of money over time. So, if you’re not happy with the fees your current account charges, then switch to one that doesn’t. There are plenty of banks that don’t charge a monthly fee. And, if you keep a high balance in your account, then most of them will waive the fee altogether.
Paying Sales Tax
You’ve probably heard this one before, but if you want to save money then it bears repeating. Sales tax is a sneaky way that stores add extra costs to their items. And, not all of us are aware of how much we actually pay in sales tax on a yearly basis. That’s why it’s important to look at your receipts and take note of how much you actually pay in tax. You’d be surprised to see just how much you spend each year on sales tax. If it’s an amount that makes you flinch, then start shopping at stores that don’t charge this extra fee.
This is a problem that a lot of people have. They see something they want and they buy it, without thinking about the cost. This often happens when we’re out shopping for groceries or clothes. We see something we like and we buy it, even if we don’t need it. The best way to avoid this is to have a plan. Decide what you need before you go out shopping, and then stick to that list. That way, you won’t be tempted to buy things on impulse.
Racking Up Balances On High-Interest Credit Cards
A lot of people don’t realize this, but using a high-interest credit card can be very costly. The interest rates on these cards can be as high as 25%. So, if you have a balance of $1,000 then you’ll end up paying an extra $250 in interest. That’s a lot of money! The best way to avoid this is to pay off your balance each month. That way, you won’t have to worry about the interest rates.
There are plenty of ways to waste money, but these are some of the most common ones. If you want to save money then you need to be aware of these traps and avoid them. There are plenty of ways to do this, so don’t be afraid to get creative. Just remember that it takes time and effort to save money, so you shouldn’t expect to do it overnight.