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8 Expensive Things You Always Spend On Which Make You Less Rich

8 Expensive Things You Always Spend On Which Make You Less Rich

Our expenses are closely connected to our lifestyle, our habits, and generally our interests. It is also quite common how we tend to justify our expenses, but we can be very judgmental as we watch those around us spend their money. It is perhaps a defensive mechanism we’ve gradually developed, while living in the consumers’ culture.

However, you are not required to give up on buying things, all you need to do is re-evaluate your decisions and approaches. In other words, how to still get what you want, but at the same time preserve your budget. Prudence is a virtue, you should not hesitate to practice, for it will bring a certain dose of stability in your future life.

1. Bottled water

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    Yes, water is one of our essential needs, but we are not obliged to spend money on bottled water. Even though tap water usually contain harmful bacteria, it can be drinkable if you install a water filter. Truth be told, a filter is not that big of an investment, yet it can save a lot of money and it is far more convenient to pour water from the tap.

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    A liter of bottled water approximately costs 2$, and let us assume that the natural daily intake of water is around 2,5 or 3 liters. By switching to tap water, you save up to $5 dollars on a daily basis, or $150 per month.

    2. Printer ink cartridges

    Regardless whether you use your printer frequently or not, buying a new cartridge every time your old one is depleted, is an unnecessary expense. Cartridges are designed to be refilled, and you can either have someone else to do it, or you can get your hands dirty and fill them yourself. Either way, you will restore its functionality at only half the price. Moreover, it would be wise to buy a quality printer that uses cheaper ink, if you tend to use your printer regularly.

    A new cartridge can cost between $40 and $60, but it can be even higher. Refilling, on the other hand, is only between $10 and $12, so you save around $30 by opting for a refill.

    3. Cable TV and magazine subscriptions

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      Almost everything you want to read in your magazine is available online for free. As far as cable or satellite TV is concerned, you can stream an incredible number of shows or full length movies on Hulu.com, free of charge. Netflix offers a lot of quality material as well, charges only 9$ a month for these services, which is still cheaper than your cable subscriptions. In other words, any quality TV show you pay over $9, is basically a waste of money.

      4. Books

      It may sound outrageous, how can buying a book be considered as reckless spending. Well, it can. Buying books online, and reading it on an e-reader is a cheaper alternative, borrowing books is another budget friendly option, and a membership in the library is perhaps the best one. Buying a book that you want to read more than once is alright, but let’s face it, we love to show off. We decorate our bookshelves with our favourite chronicles and authors, to the point when it starts to feel shallow.

      The whole point of a book is to provide you with cautionary tales, help you forge some personal wisdom and moral values. If you start to treat it as a personal possession that you use to impress your friends, then you are buying it as a decoration. It is hard to say exactly how much you save by buying books for an e-reader, but you save around 40 to 50% for each book you purchase.

      5. Expensive Branded items

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        Let’s be honest, in the event you have developed a taste for buying globally renowned branded items, then your wallet is in a serious trouble. There is nothing wrong with having your own style, or trying to mimic modern fashion, but paying significantly more, simply because of a particular trade mark is madness. For example, buying an expensive item can sometimes cause more stress than satisfaction. You are more likely to get mugged, so you need to be vigilant all the time; it may not be compatible with all of your dressing combinations.

        A luxurious bag can cost $1000 or even more, but a military messenger bag f.e. will cost between $70-$100. The same applies for other branded items, if they drain your budget, condition yourself to look for cheaper alternatives. Learn to be more creative, don’t try to impress people with brand names – you are spending too much for something that is only a fleeting sensation.

        6. Video games     

        This is the same as with books – you do not need to own the game, you are only enlarging your connection to impress the Internet (the online community). It is alright to consider yourself a proud gamer, however, spending tons of cash just to let it the world know is absurd. Surely, you have friends who are also game enthusiasts – make an agreement with them, who will buy which upcoming game.

        There is no need to spend $40 every time a new game comes on the market. Furthermore, if you play games with monthly subscriptions ($10 – $15 a month), or even worse, freemium games, stop at once. Do not even try to justify the reason why you are playing them, just stop and find a new hobby. If you are able to play it for two or three months, see what it’s is all about and quit. If you can’t show this level of restraint, then you should aks yourself if you might be an addict.

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        7. Lottery tickets

        The number of people who play the lottery is ridiculously high. As John Oliver on “Last Week Tonight” said: Planning how you will spend your lottery winnings is an equivalent to planning what to say on your third date with Beyoncé. The only thing your lottery ticket does, is help the rich to get richer. Despite the fact that a single lottery ticket is approximately $3, the amount of money people spend to participate is large, since you usually buy more than one ticket. Instead of buying a ticket, put all that money in a piggy bank, and you are bound to be more satisfied after a couple of months, when you smash it.

        8. Buying new things

        Buying a new cell phone, a new car, a new console etc. the moment it appears on the market is yet another form of irresponsible spending, especially if you already have properly functioning utilities that are former models. Boasting with new items can be fun, but continually doing so is just sad. Why would you work so hard, every day, only to allow yourself to be manipulated by cheap advertising tricks?

        If you think of yourself as a collector or enthusiast, there is no need to buy these items the moment they hit the shelves. If your old iphone is still functioning, you do not need to spend $600 just to buy a new model. The same applies to your car – spending between $6000-$7000 for a new one is losing a fortune for no particular reason.

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        Djordje Todorovic

        Blogger, Gamer Extraordinaire

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        Last Updated on March 4, 2019

        How to Use Credit Cards While Staying Out of Debt

        How to Use Credit Cards While Staying Out of Debt

        Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

        I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

        Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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        Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

        Do Not Treat Credit Cards as Your Funding Sources

        Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

        I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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        I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

        If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

        Make Sure to Always Pay Off Balances in Full Each Month

        The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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        Using Credit Cards with Rewards

        Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

        You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

        I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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        So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

        What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

        Featured photo credit: Artem Bali via unsplash.com

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