Categories: Savings

6 money-wasters and How I saved $18,000 by Swimming Against the Tide

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I’ve seen a lot of people who appear as if they have a lot of money when, in reality, they have nothing in their savings account. They don’t have much in the way of savings, and their long-term plans are unclear. They actually don’t have any cash on hand. They’re drowning in debt and payments. Here’s a list of six things individuals waste money on that eat away their savings, as well as how I saved $18,000 by swimming Against the Tide.

Purchasing “Items”

When people encounter particular items, they are prone to impulse purchases. Why do individuals waste so much money on worthless items? They don’t choose to tell themselves “no,” and they don’t choose to tell their children “no.” Most of the time, if you paused to consider each purchase, you’d find you’re probably wasting a significant amount of money each month.

Don’t be trapped by this game. Before you go shopping, ask yourself these questions: "Am I out shopping because I'm bored?" Is there anything I require?”

Your responses might surprise you. Many of us already have more than we require in our houses. Making and sticking to a budget was the key to paying off my largest loan debt in 24 months.

Paying for Memberships and Subscriptions that aren’t being Used

A streaming service or subscription box might be a convenient method to try out a new product or service without committing fully. A free trial is easy to sign up for, but it’s also simple to forget about, especially if you just utilize the new service for a few months.

As more people transition to working from home, now is a good moment to rethink your lifestyle and spending patterns. Make a list of the subscriptions or memberships you use on a regular basis and categorize them.

If you do decide to sign up for a free membership or subscription trial, set an alarm on your phone to remind you to cancel before the trial time expires.

TV Service for a Fee

This is a contentious issue. I’m aware. But before you start ranting, pay attention to what I’m saying.

Many folks, I’ve heard, have favourite shows that they watch every week.

Trying to persuade them that they can survive without so many channels is like to persuading them that they can live without food and water.

Paid television is not only a huge waste of money, but it is also a huge waste of time.

Why would you pay for television when an antenna can provide you with a LARGE number of channels?

We receive about 30 stations with a good antenna. That’s all we want/need.

Paying $1,000 a year for TV when you can receive lots of channels for free is a bad decision at any time, but it's especially bad if you have a rent, automobile payment, loan debt, or other financial obligations.

Cell phones and Services that are too Expensive

This one perplexes me a lot. People purchase high-priced cell phones and pay for them in monthly instalments. You can easily get a low-cost, high-quality smartphone and pay for it in full. However, many people believe that they must have the most recent model phone.

Cars that are brand new

This is a complete no-no.

A new car should never be purchased by somebody with good financial judgment. It's one of the most unwise investments you'll ever make.

Buying a good used car should be on your to-do list if you're serious about paying off debt and achieving financial security.

Treatments at the spa and salon

When you have debt to pay off or are attempting to save for the future, there is no reason to treat yourself to manicures, hair colours, pedicures, and so on. It's the equivalent of setting fire to your money.

Maybe every two weeks you get a manicure. If you spend $100 each month, you'll have spent $1,200 in a year. That money would be much better spent on savings or paying down debt. When you add in hair colouring, pedicures, and other services, well, you get the picture. It's a huge waste.

Example of a Savings Worksheet

Items	Cost Each Per Month - $	Total Cost per Year - $
Impulse Buying	$ 400	$ 4,800
Paid Memberships	$ 200	$ 1,200
Spa Services	$ 350	$ 4,200
Brand new cars	$ 480	$ 5,760
TV Fee	$100	$ 1,200