Are you aware of how much money you are wasting?
Imagine being able to save money without impacting your lifestyle by getting control over the items that you waste money on. Before you start to slash your budget and cut out the fun, re-evaluate the ways that you spend without thinking. Here are 12 ways that you waste money and how you can change this spending.
Overdraft Fees.
Overdraft fees can be as high as $35 per transaction, so if you have 3 overdrafts per month then you end up spending $105 in fees. What could you do with the extra money? You can prevent this by maintaining a cushion in your checking account to reduce the risk of over drafting the account.
ATM Fees.
ATM fees are really harsh because the bank servicing the ATM and your bank both charge you fees to access your money. Planning in advance will help to reduce ATM fees. If you know that you will need cash, then plan in advance to get cash from your bank. Search the web to find ATMs owned by the bank where you have your checking account. Use those ATMs only. If you are in a situation where there are no bank-owned ATMs nearby, then go to a place like CVS were you can get cash back.
Late fees.
Late fees add up quickly. Just imagine paying a bill late every month and each late payment included a fee of $15. Over the year you would have paid $180. What could you have done with the extra money? Reevaluate how you structure your bills to ensure that you have adequate cash flow to pay your expenses on time. Also, consider setting up automatic payment to minimize the likelihood of paying bills late.
Unused subscriptions.
Look at your bank statements to identify subscription services or automatic monthly expenses that you don’t use. For example, if you have a gym membership that goes unused, then cancel it. If you have multiple streaming services that you don’t use, then cancel it. Don’t pay for things that you don’t use or need.
Clothes that sit in the closet.
Shopping used to be one of my biggest budget busters. I would by clothes because they were on sale or because I thought that I needed to have it to be in style. Inevitability, those clothes went unworn and wasted space in my closet because I didn’t have a plan for when I would wear them and if I really needed them.
Buying things because they on sale.
If you find an item on sale, evaluate whether you would buy the item if it was full-price. If the answer is no, then put it back.
Grocery shopping without a list or while hungry.
Have you ever grocery shopped while hungry? If so then you probably ended up with a ton of extra food in your cart, and you walk out of the store with way more stuff than you planned to buy and may even go to waste. Before you walk into the store, survey your cabinets and determine your meals for the week. After you do this, then create the list and stick to it.
Food waste.
According to a study by the National Resource Defense Council, the average American family wastes on about $2,200 of food per year. That’s literally throwing money away. To reduce food waste use a grocery list, buy less, keep track of when items expire, and also get creative about using all of the food before it goes to waste.
Buying items for convenience.
A bottle of water at the gas station can cost $1.50 versus about $.10 if you buy a bottle of water in bulk. The cost of water can be even less if you fill up a refillable cup. Try to minimize convenience purchases by planning in advance.
Dining out daily.
You can dine out, but be aware of how often you dine out and how much you spend. If you buy dinner 5 times a week and pay $15 each time then you will spend $3,900 over the course of a year. Even if you scaled back to 2 times per week then you will save $2,340/year. To reduce the cost of dining out, plan meals more, look for dining discounts, and try to take half of your meal home to cut the cost in half.
Not maintaining your health.
Medical costs are expensive and according to a study by Harvard University, they are also the number 1 cause of bankruptcy in the United States. To avoid high medical costs, focus on prevention by maintaining a healthy lifestyle and going to the doctor and dentist for regular check ups.
Cable bill
With all of the streaming service options, it makes a lot of sense to cancel your cable. You still have to determine internet, but if you cut the cable then you can reduce your monthly costs and only pay for the services that you use. PC Mag has a great story about what your tv options are if you cut the cord.
Now that you know where you may be wasting money and how to fix it. Look at these ideas and determine which area is costing you the most money and then start there. Once you fix that area, then move on to another. Good luck!
Originally appeared on EverydayPowerBlog.com by Aisha Taylor, a financial freedom expert who brings a modern and fresh twist to wealth consciousness. Prior to becoming a full time entrepreneur, Aisha spent 6 years in Corporate America in a Fortune 100 as a Senior Financial Analyst. Aisha now works full time in her company Frugal-n-Phenomenal (FNPhenomenal), and she is on a mission of to help women break the vicious cycle of making money but not keeping it, and to help women live frugally yet phenomenally.
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