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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 January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

More About Thinking Smart

Featured photo credit: Austin Distel via unsplash.com

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