Previously I posted 80 Ways to Lose Money, that article talked about 80 different ways you can waste your hard earned money. This article talks about 5 of them in depth, that you can cut from your life. Caution, this is not to tell you to absolutely cut these out. I know for some of you having text messaging plans or unlimited data plan on your cell phone is important. In that case you may find some alternative that you can get rid of
Money wasters in life are great threats to your savings. They could even risk your riches and set you on a downward decline. You need to identify them and cut them completely from your life. Here are the five money wasters you can cut from you’re your life.
i) Using convenience stores
Convenience stores do not purchase items in high quantities like the groceries stores do. However, when you go to purchase from them, you pay some amount of premium for convenience.
The fact is the additional amount is not worth the stated convenience that you receive from them. For example, you will pay several dollars higher than what a coke costs in the grocery. Unless it is in an emergency, just go to a grocery or a hyper for your purchases.
ii) Plans offered on cell phones
Make sure to frequently check the amount you pay for your monthly phone bill, it might be higher than you need. If you find out that the numbers of minutes you use in the phone to be higher or lower than the plan you subscribe to, shift to the right plan.
Many mobile phones charges additional 30-50 cents for every minute exceeded beyond the plan you have bought. This could result to a lot of money if you use many additional minutes. This is a money waster you can avoid.
Remember to also do away with other mobile features that are charged nut you do not use. For example, many phones charge mobile internet, messaging and even tunes on a daily or monthly basis. Make sure to deactivate the features to avoid the additional costs.
iii) Soft drinks
Soft drinks are sneaky, money wasters. Ordering them raises the total amounts of expenses and give sellers very high markups. They therefore degenerate the overall value to your money.
If you save about 1.5$ by avoiding a soft drink, this could accumulate to hundreds and thousands of money in months and years respectively. This money can be put in a better plan such as retirement of even housing. When you go dining out, go for water and not soft drinks.
With all due respect to your choice, I often find soft drink is a life saver. Specially after a long and hectic excursion activity out door or after a round of tennis practice I do find drinks are very refreshing.
All I want to convey is too frequent soft drink consumption is a money waster. Same goes with smoking, which is almost always bad for your money and health.
iv) Unnecessary bank fees
Many are the people who are charged hidden fees by their banks. For example, some banks will charge you more if you use other banks ATMs or withdrawing from the counter. If you are unsure of the fees that you are subjected to, talk to your bank for full details.
You can avoid the additional withdrawal cost by adopting a 25% one time withdrawal plan for every $20. If you maintain an account that has fixed withdrawal times for every month, you may adopt a $10 monthly maintenance fee. Avoid the additional costing to get higher value for your money.
v) Annual credit card charges
If you have good credit history, you do not have to meet annual fees for your credit cards. There are many cards such as Visa, MasterCard and others that do not have the yearly fees. However, others continue paying as high as $ 100 because of associated privileges of using the card.
Talk to your credit card company to understand all the charges and shift to a better type of card with lower or no charges.
Be proactive and seek to understand where every single dollar goes to. This will help you to cut short most of the money wasters in your life.
Readers, I listed the 5 main items, according to me, where you can cut out to save money. Many of you may not agree to these list. But I am sure there are many items where you can cut back.
Do let us know where you observed maximum impact in terms of amount of money you saved by changing a few habits.