Having a budget isn’t entirely a safety net. Despite having this as a measure to control your funds, you’ll find a few loopholes.
Knowing how you’re wasting money is essential to monitor your spending habits. The first thing you can do to achieve this is to identify expenditures that aren’t worth it.
Luckily, we’ve done some dirty work identifying ways you may think are helping but are only pulling your money down the drain.
1. Opting For Cheap Items
It might seem wise to pick the least expensive item, mainly when it can serve the same purpose. Unfortunately, when you buy cheap, you pay less attention to quality. It could lead to frequent repairs, a replacement of the item, or even poor usage. If you pay close attention, you will notice how much this puts a dent in your pockets.
2. Personal Care And Beauty Products
To look good, you can get lots of skin care products. It isn’t bad, and it may be healthy to make such efforts. However, you probably get product recommendations from Instagram, TikTok, or YouTube influencers (guilty here). It could also be a friend using something you like that inspired you to get it.
At the end of the day, most of them end up useless as they harm your skin. But with proper recommendations, you can avoid purchasing unnecessary products. The right thing to do is visit a dermatologist.
3. Grocery Shopping And Food Purchase
These are essentials needed for your everyday life. You may wonder why this is on the list. Looking closely at your shopping habit, you will find just how much money might be going down black holes.
Take it from food enthusiasts; most single-use products and brandless items are major rip-offs you should watch out for.
Insurance tops the list of life’s necessities. Although, most people get it wrong sometimes. They insure things that may not deserve insurance. Insuring certain items may be playing safe — or throwing money away.
Cell phone insurance, identity theft insurance, and rental care insurance are a few you should closely consider before investing. You can start by asking yourself how often you’ve called the cell phone insurance regarding your phone.
5. Blindly Purchasing a Course
Sometimes you end up paying for a course you don’t need. It could be a spur-of-the-moment action, or the course was on a discount. Regardless, this can cause you to lose some money. It’s best to try out the free version and see if it’s something you’re genuinely interested in. This saves you from unnecessary expenses.
6. Extended Warranties And Subscription Services
Both might not seem much, but they definitely affect your finances. Extending warranties may be unnecessary, especially when you don’t need the extra features it comes with. It might entice, but you’ll find out you’re paying for something you don’t use.
The same thing applies to subscription services. You probably have multiple running simultaneously — even ones with similar features. The thing is, you can’t use them all at the same time. So it’s best to pick at least two that you frequently use.
7. Luxury Purchase For Status
Don’t we all love lavish living? Surely, as a kid, you saw a fancy ride and screamed, “that’s my car!”. Or you may love the five-star resort and the services they provide. It’s not wrong to desire all these and even get them yourself. Everyone wants to live the best life and have the best things — no matter what they cost.
But it becomes an issue when you’re doing it for status. You may think it builds your esteem, but it doesn’t. Instead, you’re only wasting hard-earned money.
8. Bank Fees And Debit Cards
Bank fees are a menace! You may be losing a lot of money without even knowing it. Some of these fees include ATM fees, overdraft fees, credit card fees, and a few others. Sometimes, it’s out of our control. Still, keep track of these fees to know when you’re being overcharged.
Then there are debit cards. Purchasing a debit card may be a loss on your part. It’s better to use a credit card where you earn 1.5% on your purchase.
Cloth shopping, accessory shopping, and even app purchases can sink your money faster than the Titanic iceberg. It’s easy to get carried away by wants instead of your needs. That’s why it’s important to distinguish both when shopping for anything. For example, getting a summer wardrobe change is optional — except if you’ve outgrown most of your summer clothing.
These can be an excellent way to save money, considering the item is going for a lesser price. Although, it can only be helpful when you need the item. Most people get carried away by the price slash. They end up buying what they don’t need.
It’s a dicey game!
In the end, to quote Jay-Z, life is for living, not living uptight. Sometimes, letting loose and spending money however you like feels good. Still, remember that there are good and bad ways to spend money, and consistently insisting on the latter might leave you in financial jeopardy.
This thread inspired this post.