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20 Things You Are Wasting Money On

20 Things You Are Wasting Money On

There are most likely a good amount of items in your budget that you can probably cut out completely, or at least lower your spending on. There are some instances where you may not always be “wasting” your money, but in the cases below, you should try to evaluate your spending. A lot of these little things can add up quickly.

Here is a list of things that you may be wasting money on:

Bottled water

Bottled water can be expensive. If you want filtered water, buy a water filtering system and fill-up a re-usable bottle on your own. You are helping the environment this way as well, since you won’t be using so many plastic bottles.

Famous brand products

When was the last time that you bought something primarily because of the brand? Many people do this. Try to look for items that are similar, but without the brand name logo on it.

Jewelry

Yes, jewelry can be nice to have at times, but should you be spending your life savings on it? Probably not.

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Shoes that you do not need

Shoes are important, but are a pair of $1,000 sneakers a “need?” Buy shoes that help you run, walk, hike, look good, etc., but a crazy expensive pair is most likely just a waste of money.

Second-rate entertainment

Second-rate entertainment can be a big money waster. Try to find things to do that are more frugal and fun. Go for a hike, a bike ride, and so on.

Transportation

Do you find yourself driving to where you need to go, when you could easily walk or drive a bike? Think about this next time before you get in your car. Also, think about living closer to work so that you can save on transportation costs that way as well.

Movie theater food

Buying food at the movie theater can be very expensive. Boxes of candy may be around $4 or $5, drinks around $7, and popcorn somewhere between that. Save money and skip the food.

ATM fees

ATM fees can add up quickly. My bank charges an extra $2 or $3 onto whatever the ATM charges me. At times, that means that I have paid over $5 just to get money out. Instead, try to figure out a different way to not pay an ATM fee.

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Lottery tickets

Yes, it is nice to think about what you would do if you won all of that money, but the chance of you winning is very slim. Save that money instead.

Coffee

I know of someone who complains about never having money, yet they go to Starbucks every single day and buy a latte. It makes no sense! Save your money and make your cup of coffee at home.

Prepared foods

When at the grocery store, there are always many food items that are already prepared for you. However, try to cook yourself or make things from scratch. You can save money this way.

Insurance

Insurance is expensive, no matter what you are talking about. Car insurance, health insurance, home insurance, life insurance, etc. most likely eat up a lot of your budget. Shop around and find the best rates.

Buying books

Reading a book can be a great hobby that is cheap, but it could be cheaper. Borrow books from your library to completely cut out this expense.

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Too large of a home

How much of your house do you actually use? If your house is too big, then you probably have extra rooms that are empty, or you might buy furniture just for the sake of filling those rooms. A bigger house costs more to maintain, and utility bills are most likely higher since you have more space to heat or cool down.

Warranties

Sometimes a warranty may be a good deal, but most of the time they are not. They are usually pure money-makers for the company offering them. If you think the item will break, then you might want to rethink the purchase altogether.

Food that you don’t eat

If you are not careful with what you buy, then there is a large chance that you are wasting a lot of fun. The average family wastes around 25% of the food that they buy.

Smoking

Smoking is not good for you. Try to find a way to break this unhealthy habit. You are saving your life and your money.

Taxes

Many people think that they can do their income taxes on their own, however this isn’t always the best case. A good accountant can help you find areas where you might be able to lower your taxes.

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Water

Water can be expensive, and there are things that you can do to lower your water spending. Look into buying more efficient home products, such as a better toilet, faucet, shower head, dish washer and so on.

Cell phone

Cell phones are expensive.  Evaluate your needs and see if there is a cheaper contract out there. There are many new companies popping up all over the place with plans under $30.

What are you wasting your money on?

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Last Updated on April 3, 2019

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider Consolidating Multiple Credit Cards If Possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to Pay the Full Balance You Spent Each Month at the Very Least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay Extra When You Can – Every Small Amount Counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a Plan on How to Pay Extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out Costs for Services You Do Not Use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get Aggressive About It

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate Your Progress at Set Intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep Trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start Knocking out Your Debt Today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

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Featured photo credit: Pexels via pexels.com

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