Ways That You Are Wasting Your Money

Most people think in ways to save money.  There are not many people out there who think in ways that they are wasting money.  To really save money, you need to realize where you are wasting money, not just where you can cut back, but where you are truly wasting money.  Sure you can cut coupons and turn off lights but there is more to it than that.  You need to start asking yourself where you are wasting money, not just where you can save money.

For example, buying name brand items at the store instead of the generic or store brand items wastes money, most people do not think about this they only look for coupons to cut the cost.  If you have a coupon for the name brand and it makes it cheaper fine, but if not, then you will still be wasting money.  Do not use the excuse it is just a few dollars or a few cents because that does add up over time and not having those few dollars and change that adds up could keep you from getting something you need later on.

Late fees are simply a waste of money; there is no way around it.  If you know you are not going to have enough money to pay a bill until you get paid, call the company.  Explain your situation and ask them if they will waive the late fee since you notified them in advance, and let them know when they can expect payment.  Some companies will be willing to do this for you once or twice, but do not make a habit of it or they will not and you will be wasting money on late fees.

Do you have a credit card?  Do you have a balance on it?  That is just a waste of money.  You are paying interest on the balance on your credit card.  Every credit card has its own interest rate so you will pay a different amount for each card and the amount you have on it, but no matter what the amount is, it is a waste of money to pay for it.  Do not carry a balance on your credit card; pay the balance off as soon as possible!

Leaving your money in a low interest account is a waste of money.  Why would you do this?  You want your money to earn as much interest as possible.  This way the amount in the account can grow faster, which means the amount of interest you earn will be more, which means the money in the account grows faster, and so on.  It is a cycle known as compound interest and it is like getting free money and you do want that.  So remember low interest accounts are a waste of money because you are not getting the money in interest that you should be getting.

Keeping unhealthy habits is yet another waste of money.  First you have to pay for the unhealthy habit, and then you have to pay for the negative health consequences of the habit. Having an unhealthy habit can cause you to waste a lot of money every year, so if you have any you should work on getting rid of them.

If you look at things in terms of where you are wasting money instead of where you can save money you may be more motivated to make changes in your financial life.  It may be negative but it also may scare you into making positive changes.  Think about where you are wasting money and make a change.