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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 July 20, 2021

        Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

        Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

        Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

        Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

        Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

        In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

        Break Free of Your Finances

        Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

        When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

        Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

        Though it seems hard to believe, it is really very simple to get financial freedom.

        To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

        While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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        Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

        1. Stop Unnecessary Spending

        We often spend money inwardly, instead of objectively.

        For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

        To stop this habitual spending, log down all your spending over the course of a month.

        Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

        This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

        2. Plan a Monthly Budget

        This is a great opportunity to get serious.

        Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

        Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

        3. Cut-up Credit Cards

        Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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        If not, you may want to consider ridding your life of the burden that credit cards bring.

        Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

        Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

        4. Increase Savings

        There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

        It’s good practice to save up to 15% of your income.

        Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

        Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

        5. Invest Wisely

        Consider investing in funds.

        Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

        To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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        Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

        6. Invest in Gold

        There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

        You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

        Another way to invest in gold is through ETFs (Exchange Traded Funds).

        These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

        With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

        7. Stash Emergency Funds

        Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

        If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

        Make it hard to get your cash.

        Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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        8. Find Fabulous Mentors

        Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

        If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

        There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

        9. Be Extra Patient

        Patience is the key of financial success.

        Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

        So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

        Financial Freedom for All

        Anyone can achieve financial freedom, regardless of their financial circumstance.

        Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

        Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

        Featured photo credit: rawpixel via unsplash.com

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        Reference

        [1] Hartford Gold Group: IRA Retirement Accounts

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