Americans are huge consumers, and 70% of our economy depends on how much we spend on needs and wants. Many Americans need to stop wasting money on the wrong things. While most of the country uses their credit cards for daily expenses, most enjoy long credit lines, so it’s important to consume wisely. There are several ways you might be wasting money yourself. Examine these nine areas so you can have better money management.
1. Hiring Other People For Simple Tasks
While there are advantages to outsourcing daily household tasks, you need to make sure that the choice is beneficial and not just costly. Keep your laziness in check. Are you spending extra dollars on something you can easily do yourself? Stop wasting money on cleaning services; for example, you can do the task yourself if you only put a little more effort into planning your work. You might also want to consider cooking simpler meals instead of ordering pizza and take-out food all the time. It’s healthier, too, so you hit two goals with a little more effort.
2. Disregarding Coupons And Gift Cards
People often get gift cards and forget about them because they might think the amount is small anyway. They keep the code for a while and forget about them. Others get loyalty coupons from shopping at the same store for months and forget to use them. There’s a treasure trove waiting for you if you put all these coupons and gift cards together. Add them all up, and they can pay for at least 25% of your groceries if you know how to use them well. While they may look less glamorous, these coupons and gift cards have economic value and can pave the way to your next dream vacation. Every penny you save on daily expenses, like groceries, can go to a luxurious break somewhere in the Caribbean.
3. Stop Wasting Money On Food Waste
There is so much food waste in American households. You cook too much mac and cheese and end up having to throw it out the bin the moment the kids are tired of it. You purchase too many pancake mix boxes because there was a sale at your local grocery outlet, only to have the “savings” turn into losses as the pancake mixes expire before you remember to use them. While bulk shopping seems like a surefire way to save money, you need to do this wisely. Bulk shop only on items that can last at least six months, so be sure to use them. One of the keys to frugal living is having a consistent sense of follow-through. If you’re only religiously saving at the start and then forgetting about your efforts later on, then all your efforts and your extra groceries will go to waste.
4. Lost Items
Is your home cluttered? Then, there is a good chance that you have lost track of items you already have in stock. You probably buy too many things of the same kind because you lost them in that random heap of oblivion at home. Stop wasting money by purchasing “lost items.” This is when having hired help for cleaning might no longer be a waste of money. Roll up your sleeves and start organizing your home one cabinet and corner at a time. Group your clothes by color and season so you actually remember to wear them. Put all your essential tools like scissors and cutters in a single spot so you know where they are, and never shop for another one when you can’t find it.
5. Premium Air Travel
You don’t always need to travel in style, even with enough cash to spare. Consider the necessities instead. How long will you be staying in your destination? Short-term travel plans might not require you to check baggage in. You might be able to travel with just a big carry-on. Learn to pack lightly. Also, consider taking flights that are off-peak hours. The extra waiting time might be worth it if the airport has a nice lounge you can stay in and get some work done. Layaways can be productive. You might also want to rethink in-flight meals, especially if you’re not very hungry throughout the day. If the flight will take you to the airport at exactly lunchtime or just an hour past it, you could save plenty of money by skipping the meal inclusions in-flight.
6. Premium Land Travel
While hiring an Uber is convenient, it does not always come at a cheap price. If you can’t drive your car, consider hopping on the bus or the train if you need to get from point A to B. Uber should only be an option if you need to look extra presentable for a meeting or if you are in a hurry and you can’t afford delays in your travel. If you have time to spare, consider public transportation to work. If you can’t do that, consider carpooling with several workmates or friends in the same vicinity.
7. Tax Rebates
It is always a pity if you let your money go to just paying unnecessary taxes. Hiring an accountant to help you with your taxes might be a bang for the buck. Accountants are experts, so they can help you maneuver the tricky route of tax rebates and tax exemptions. You can save a lot of money if you know which tax rewards to apply for and how to qualify for them. Knowing how to use tax rebates is essential if you own a small business.
8. Poor Planning
The little things matter when you are trying to reduce spending, so forgetting something at the grocery store and having to spend for transportation for another shopping errand can be a “leak” in your budget. Plug up that leak and make sure you’re spending your money wisely. Stop spending money on extra mall trips or deliveries because you forgot to put something on your list. Making shopping lists and accounting for expenses may seem tedious at first, but you might find yourself living on a deficit if you don’t try to take control of your costs soon.
9. Fancy Kitchen Gadgets
You don’t need fancy kitchen gadgets to cook real food. They could be handy, but you need to assess if they are worth the investment or if a knife still does a better job. For example, you could invest in a breadmaker if bread is hard to come by in your area or if you have special dietary needs. However, if you can consume regular bakery bread without getting sick, then you don’t need that fancy bread maker that does everything for you. Consider your needs and your wants, especially in the kitchen, where there are so many kitchen gizmos on which you can spend your money. Consider the return on investment or ROI if you must spend a lot on a cook kitchen tool. Don’t just purchase it because your neighbors have it, and you don’t want to be left behind in the trend.
Stop Wasting Money on Wants
It all comes down to clearly identifying your wants and needs and being organized enough that you have full control of your money flow. Sometimes, we get lazy with these things, and before we know it, we forget to fix our financial leaks. Just remember how our forefathers learned to live with so much less and were able to save plenty of money. Instead of putting your money on the “latest” depreciating asset, consider investing it elsewhere, like in gold or stocks. This way, your wealth grows, and you will not just survive from one payday to the next.