If you are living in Manchester, and on your way back from office, eats a pizza at Wilmslow Road, you are surely spending a good amount of money on something which you should clearly avoid- for your health reasons.
Few of us do such things repeatedly- unconsciously spending money on small things. Money which could have been saved is spent on buying an extra cig or for that matter Latte coffee.
Is it wrong? Well! It depends
It depends on how you value things- for you, latte may be important because it gives you a caffeine boost you need just before you start your day
Or for someone like me who drinks 5 to 6 glasses of water immediately on waking up- just to get the same boost without caffeine. (if you drink coffee just to get a boost, try drinking a full bottle of water first thing in the morning and you will be more alert! Just try it) it may not matter much…
If you want to save money by avoiding some small expenses, here is the small list of mini habits which are costing you at least you hundreds of dollars a month:
1. Buying pizza on your way home
I know, you guessed it right! I was going to discuss this first because most of us feel too tired after day’s work. Single, young professionals, looking to make their mark and get quick promotions, work too hard often.
By 5 pm when you leave the office for home, all the motivation and willpower is almost at zero level and you don’t feel like cooking.
If you live in a large city, peak evening hours means a lot of rush in the metro and more stress to deal with.
More stress- less willpower and you know what, on your way back, you just pull out your wallet and buy a pizza.
A pizza costs you on average $5 to $10 and if you buy at most 2 pizzas per week, you are already spending 40 per week on something you can easily cook at home or buy a really nice dinner at fraction of the cost.
2. Putting your money in banks which don’t offer interest on current accounts
I’m nott going to inform you about a secret current account offering you 5% rate but what I’m going to tell you is that you can squeeze out some extra cash if you place your money in accounts which offer you some interest.
You may be thinking, how this one is a habit? Right?
Because you are too loyal to your Bank- you have a long history with them or probably it was the first Bank which agreed to open your bank account (My first Bank gave me an appointment to meet the Bank guy for opening my account after 6 weeks from the date I requested to open my account).
So yes over the period of time, using your Bank may be your habit because you simply don’t want other Banks.
But if it is costing you money, it’s time to rethink.
3. Buying for current Christmas season only
Buying on Boxing Day sale is a habit- a cultural phenomenon as people spend millions every year on that sale.
We buy Gifts, cakes, wine, cards, gift wrappings, and decorations just before the Christmas. However, most of the things are bought for that particular event i.e. bought in quantities which are consumed on that Christmas.
If you can just stock up gifts (non-perishable items) for next year, you can save at least amount equal to the inflation.
If you are not a fashion crazy person, you can easily save a lot by buying next year’s items such as shoes, bags, and clothing on this Boxing Day Sales.
4. Supporting your teenage children
This one could be really emotional. If you have teenage children and you are still supporting them with pocket money and is paying for their other stuff, you should rethink because you are losing the opportunity to save.
5. Not preparing and following a budget
No one can deny the importance of having expense budget and following it. I guarantee you that if you just start tracking every single penny you spend; you are surely going to save a lot. Start developing this habit and build it as a life-long habit.
For me tracking expense is a habit because it requires repetition and if you keep on repeating this task, it will become a second nature to you record and track your expenses. Gradually you will realize where your money is going and what you can do it save it.
6. Stop paying with credit cards
In next few years, most of the developed countries will be check-free with banks only issuing money against plastic or online.
But believe me, the joy of paying in cash is more than paying through the card.
When you pay through cash, subconsciously you are exercising control over yourself. Except your direct debits, the habit of paying cash can help you reduce your expenses. Many people spend more and get their balances transferred to balance transfer credit cards which can reduce your cost for some time but ultimately you have to pay.
Above are some simple facts which can cost you a lot of money in long run. Just be more observant of what you are spending on and you can easily save a lot. Spending without a purpose is always going to hurt your wallet so be careful.
Featured photo credit: Stylist via stylist.co.uk