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9 Spending Habits Which Waste You A Lot Of Money Though You’re Not Aware

9 Spending Habits Which Waste You A Lot Of Money Though You’re Not Aware

If you want to meet your financial goals and certain milestones in life you have to be critical on how you spend money. Spending money and acting frugally could be the difference between a comfortable retirement and having to work hard in later years. It takes only a couple of habits to be robbed of your hard-earned money. There are certain spending habits that could be wasting you a lot of money though you are not aware of it. If you want to attain your financial independence and be in control of your every dollar, here are some spending habits you should be aware of.

1. Buying brand names

Because we are conditioned by advertisers that brand-name products always serve us better we are inclined to reach for brand-name products without ever counting the cost. But by trying generic brands or stores for products we buy often, we certainly would be saving 20 percent more.

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2. Eating out

Many of us feel that cooking good food is tough. For some of us, we are too tired to cook. But when you stop eating out, the payoff can be huge. By changing your dining habits you could save hundreds if not thousands of dollars a year.

3. Regularly changing the oil in your vehicles

By wanting to stay on top of routine maintenance you show good habits. However when you are regularly changing the oil in your vehicles for every 3,000 miles, you may be wasting money. Many new vehicles use synthetic oils that can last you for over 8,000 miles or more. You could save your money by checking this website for oil change info for newer model vehicles and save yourself some money.

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4. Drinking bottled water

You will be costing yourself 1,000 dollars more per year by getting your recommended daily amount of water exclusively in a bottle. Comparatively it will cost you no more than 50 cents per year for you get healthy tap water. You could try refrigerating your water overnight before drinking if your tap has a chlorine flavor.

5. Buying gourmet coffee

It may seem cheap spending a few bucks a day at the local coffee bar. However can you imagine all the money that is wasted and could be saved if you simply brewed your own coffee at home?

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6. ATM fees

You rack up fees by using ATMs that are not on your bank’s network. You could be wasting money ignorantly if you use out-of-system ATMs just twice a week! You could be saving some money by switching banks or opening an account that is better situated to where you live/work.

7. Initial offers

It seems people are not haggling anymore. We all seem to accept the first initial offers when buying things. Sometimes it pays to ask and it never hurts to. Many seem to view the prices of such intangibles as cable bills, hotel fees, home accessories and more as non-negotiable. However you could be saving money and avoid wasting it when you haggle more.

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8. Infomercial impulse buys

According to the Electronic Retailing Association, the infomercial industry brings in about 400 billion dollars a year. The allure of buying lower and quicker when we watch infomercials can become wasteful after all. It is no secret that many of these impulse purchases go unused.

9. Buying new things

Sometimes you are not obliged to buy a new stuff, yet you do. Because you have to buy an originally packaged product you thus subject yourself to paying double the price. Buying a new product just as it is released forces you to pay more and according to experts nobody should buy something new because it makes better financial sense to buy secondhand sometimes.

Be kind to yourself and start breaking these spending habits.

Featured photo credit: http://www.pixabay.com via pixabay.com

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Casey Imafidon

Specialized in motivation and personal growth, providing advice to make readers fulfilled and spurred on to achieve all that they desire in life.

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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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