There is no second-guessing that everyone loves money. They work 24*7 hours to make their living more convenient. Then, some people explore the world by working side by side, and the people are still stuck in the rat race. The list is endless. But the point is you need to work harder to earn money. You might even be ready to cross the oceans, rattle through the jungles, and jump onto the crossroads of fire. It is not worth wasting your hard-earned money without knowing how to handle it.
Long story short, it is important to eliminate the number of ways you are wasting money and handle money-throwing problems. After all, in the end, we all want more money. We all have things where we’d rather try to spend our money than throw it away, so making a few simple changes can make a huge difference.
So grab a bucket of popcorn and try to understand our mini financial planner to take control of your finances and achieve financial goals.
Here, you will study the eight examples of money-wasting.
Credit Manual Fees
Everyone loves a huge sign-on bonus for a credit card, right? Spending $4,000 in three months and travelling miles on a trip to Hawaii isn’t what we all need every year, yes, please!
But wait, there is a better time to hurry up! Here’s something to consider and make notes before you grab your credit card and shop.
Often looking like a golden ticket, the credit card gives you a good opportunity and comes with an annual fee.
Though the bank may waive the first-year fee, you should still decide whether or not it makes sense to keep the card open in year two. If the card also offers other perks, such as free checked bags, that you often take advantage of, you may require the fee plus some.
Make sure you do your maths and calculations before deciding if you’re benefitting or stuck in a money-throwing habit.
Paying Late Payment Fees
Ideally, there is nothing good when you have to pay your late payment fee, and if you’re managing your money, then there’s no excuse for it either.
So, get a separate bill account and put enough money in each paycheck to cover all of your bills, and make sure your bills are directly debited from this account.
This way, you never have to pay your bill late, and you never have to pay a late payment fee. You can also maintain an excellent CIBIL score and manage well if you take any future debt.
Have you ever been advised that you shouldn’t go to the grocery shop whenever you are hungry? Well, if you ever got it, then you shouldn’t. Going into the store and throwing things into your cart can be a chronic huge waste. No one likes those mouldy dry fruits, veggies, sour dairy products, and frozen snacks because they get shopped without intent and don’t get used at last.
Besides that, coffee is a much-needed essential you may want to buy daily. But buying coffee daily can set you back and cost you a thousand dollars. It may seem conservative to think that you can’t live without coffee. You may think you’ve lost your confidence and can’t stand firm to crack those deals you’ve always dreamed of, but let’s be honest, that’s not the reality we are living in.
Grabbing a cup of coffee on your way to the office may seem so easy and convenient, but if you think about it, you can save money by making it home. You must consider whether you are spending or just throwing money away.
Forgetting About The Free-Trial Period For A Subscription Fee
It’s simple, yes, to opt into a free trial period of a subscription service, but you also need to be smart while taking action. For example, just the other day, I upgraded my Spotify account for one month of free access, but at the same time, I set an alert on my phone to unsubscribe the day before I had to pay. So, you set a reminder for yourself if you do not want to subscribe but want to leverage the services for the first initial months.
So, if you want to play around with free trial periods, play, but stay alert too! Remember to opt out before any payment starts and do your financial planning strongly without throwing money away.
Buying Something Everytime You Go For Shopping
Are you a shopaholic, too? If you are just like me, raise your wand and look at the sky because we are gathered together where we struggle between our hearts and minds. Most days, whenever you go out to explore, you buy things you don’t need, but they catch your attention. It could be anything: clothes, accessories, footwear, bags, etc. The ideal way of dealing with money-throwing problems while taking care of yourself should be to refrain from buying something whenever you go out. Try to avoid shopping centres, malls, and markets. If you cannot avoid them, set yourself a challenge. And when the time comes, if you find yourself going on several trips without being a shopaholic, you may try to treat yourself the next time. In this way, you will be confident enough to control your urge to shop all the time and will do your financial planning well without dealing with money-throwing issues.
Not Tracking Your Expenses
How much money did you spend on last week? And when exactly did you spend it on? If you need clarification and have yet to learn what you are doing and where you are throwing away your money, then you need a pep talk!
Knowing your expenses, when your bills are due, and what you spend your money on can help you manage your money and determine exactly where you are throwing money! It can help you avoid additional charges and help you in your financial planning to reduce your spending in the areas where it is not needed much.
You can manage your finances if you start thinking like a business person and maintaining sheets at the end of the income and expenses.
These simple tips and tricks can help you manage your tweaks to approach your finances and make a difference in how much money you end up throwing away.
Paying For A Gym Membership, You Rarely Use
Paying for a gym membership you rarely use is one of the ways of throwing money. Though it might be true, you had good intentions. You were too sure that you would join a gym and were also disciplined in the past. But now, you need to work on your goals in the new year. You must build good habits and refrain from paying for something you do not use.
Instead of paying for a gym membership, you can also try these ways to manage your financial crisis and learn money-management skills like:
- You can ditch the gym entirely and work out at home.
- Find yourself a gym where you pay by the day.
- Join a free community gym.
Besides that, you can also use YouTube to watch workout videos. It will give you the experience of a fitness class and having a personal trainer simultaneously.
Failing To Negotiate
The biggest way of throwing money is not speaking and not electing to negotiate. You’re mistaken if you think you can only negotiate on flea markets.
You can negotiate loan rates, negotiable rents, cable, internet, and even cell phone plans. You can try your negotiating skills with cable/ internet providers; they can be simple to negotiate with, and there is scope, too, for you to stop your money-throwing patterns. With them, switching to a competitor and getting a first-time customer offer is easy. So, act now and use the fact for leverage!
Threatening to cancel service and move to their competitor and a different provider can help you sometimes. It can make the customer service representatives take you seriously. It may help you reduce your current rate back to the first-time customer status of the year. In short, it can assist you in handling your money-throwing habits and lead to better financial planning.
Also Read – Top 10 Financial Tips Everyone Should Know!
Poor records of where your money is going and needing to know how to make a budget can help many businesses, and here we are only talking about our finances. Having a great record of all your finances can help you understand where all your money is going, whether it is worth it or not. With the help of a record, you can see all the details in a split second on your smartphone.
Simple ways of making changes, adopting a new way of thinking, and taking matters into your own hands can greatly help you.
Be it your financial matters, money-throwing habits, or getting empty pockets at the end of each month. Knowing ways you can throw your hard-earned money and analysing how you can fix it can help you live your life more happily and stress-free.