If you consistently find your money a little shorter than your month, there may be a few sneaky budget-eaters hiding in your spending habits that you’re spending money on. Nipping a few of these things in the bud can help keep your budget on track and make saving money a little easier.
Low Income Loans Australia has found a few commonly overlooked expenses that pop up more often than not when helping people budget and manage their finances. Are any of the below killing your budget that you’re spending money on?
7 Stupid Things You Are Spending Money On
Late fees: Pay your bills on time. Memberships, utilities, personal loans, car loans, credit cards etc. While some of these fees may be low, it is still cash out of your pocket.
If you are paying late fees on credit cards or loans, you could be adding upwards of $30 or more to your bill. Ouch! Set up automatic payments for your monthly bills and set reminders on your calendar so you return items on time.
Payment fees: Did you know that some companies charge you an extra $5 or more to pay a bill over the phone? Aside from being unnecessary, it is a waste of cash.
Pay online or send a check in the mail to save a hefty fee each month. Don’t forget surcharges for credit card payments, they can also add up.
Extended warranties: The only thing you should ever get an extended warranty on is your car and a computer. When you head out to the shops for holiday shopping just say no to “extended” warranty offers.
Stores will offer extended warranties on anything from DVDs to televisions and game consoles. Most of the time those warranties go unused. Most damage takes place within the first year, which is when most manufacture warranties expire. Just say no.
Smart phones: If you can afford the monthly payment, go for it. However, if you are living on a tight budget, nix the smart phone and opt for a flip phone.
Better yet, get a landline and relish in the freedom of not being connected to a cellular device all day long. You can easily save over $100 a month by adjusting your plan.
Eating out: Let’s be honest, if your bank account is bleeding money, odds are pretty good that at least some of that money is now lining the pocket of some fast food joint. If you spend $10 a day eating out lunch (instead of brown bagging it to work), that is about $50 a week, $200 a month and roughly $2400 a year! Cook at home more often and save some calories and cash. (The same thing applies to those coffee runs!)
Impulse buys: You head to the grocery store for a liter of milk and head home with the milk, three candy bars, a magazine and a new plant. What happened? Stop impulse buys by making a list and stick to it.
If you are tempted to make an impulse buy ask yourself two questions: Do I need it? (This should at least eliminate a few candy bars) and do I have somewhere for this? If you answered no to both, you should put the item back.
A new car: No. Just no. Buy used. That new car you buy depreciates as soon as you drive it off the lot. Purchasing a used car with a few thousand miles on it will save you thousands of dollars in interest.
Want to save money? Look at using coupons and checking out coupons sites before you make big purchases. Sears Canada online can save you a fortune when you are spending money on both large and small purchases.
What other budget killers that you are spending money on?