Do you ever feel like your money is disappearing into thin air? You’re not alone. Many people waste their money on things they don’t need or want. In this article, we’ll discuss the four things you are probably wasting your money on, and how you can stop.
Credit card interest and ongoing debt
Credit card interest and ongoing debt can be a major financial burden. If you're carrying a balance on your credit cards, you're paying interest on that money every month. This can add up over time, and it can make it difficult to reach your financial goals.
There are a few things you can do to reduce your credit card interest and ongoing debt:
- Pay more than the minimum payment. If you only make the minimum payment on your credit cards, it will take you years to pay off your debt, and you'll end up paying a lot of interest. Try to pay as much as you can each month to reduce your debt faster.
- Transfer your balance to a low-interest credit card. If you have good credit, you may be able to transfer your balance to a low-interest credit card. This can save you a lot of money on interest.
- Consolidate your debt with a personal loan. If you have multiple debts with high interest rates, you may be able to consolidate them into a single personal loan with a lower interest rate. This can make it easier to manage your debt and pay it off faster.
Impulse purchases are often made without thinking, and they can add up over time. For example, you might see a cute shirt at the mall and buy it on the spot, even though you don't really need it. Or, you might order takeout for dinner every night because you're too tired to cook.
There are a few things you can do to avoid impulse purchases:
- Plan major purchases ahead of time. Need a new TV? Research the make and model you want, where you can buy it and plan for Black Friday, Boxing Day or mid-year sales. The anticipation and expected savings can act as motivators, as you know you will be getting something you want and importantly, you know when you will get it.
- Make a budget and stick to it. When you have a budget, you're more likely to be mindful of your spending.
- Leave your credit cards at home when you go shopping. If you don't have your credit cards with you, you're less likely to make impulse purchases.
- Wait 24 hours before buying something. If you see something you want, wait 24 hours before buying it. This will give you time to think about whether you really need it.
Unused subscriptions and memberships
Many people forget about subscriptions and memberships that they no longer use. For example, you might have a subscription to a magazine that you never read, or a membership to a gym that you never go to.
It's important to review your subscriptions and memberships on a regular basis to cancel any that you're not using. You can do this by logging into your online accounts and checking your billing statements.
There are many unnecessary fees that people pay on a regular basis, such as bank fees, ATM fees, and late fees. These fees can add up over time, and they can eat into your savings.
There are a few things you can do to avoid unnecessary fees:
- Shop around for a bank that doesn't charge high fees.
- Pay your bills on time to avoid late fees.
- Research the T&Cs of your preferred payment platforms to understand what fees, if any, are incurred when you use them.
By following these tips, you can stop wasting your money on things you don't need or want. This will give you more money to save for your financial goals.