If there is one thing in life that I really don’t like, it’s wasting money. I don’t mind spending money on items or services that are worth the cost, and I don’t mind being wrong (every once in a while) but I really hate wasting money. Actually I hate wasting anything in life whether its food, money, or my time; but that is just because I like to be efficient and organized on a level that borders obsessive-compulsive.
Financial Awakenings recently published a blog post about all of the different ways that people waste their money on everything from travelling to investing. Most personal finance bloggers write about different ways that people can save money or different ways how to make money when investing. But not Financial Awakenings. Financial Awakenings tells us all of the ways that people are currently wasting their money. Hopefully we will learn from this list and stop wasting money.
You are currently wasting money on Travelling if you:
Buy premade vacation package deals, a timeshare unit, or stay at an all inclusive hotel if you don’t take advantage of all of the hotels amenities. Many of us may be guilty of wasting money while travelling and we tell ourselves its ok because I am on vacation. But the truth is that wasting money is still a waste of money regardless of where we are in the world. Eating at restaurants in hotels and using overpriced room service just for convenience are also ways that travellers waste their money.
You are currently wasting money on Major Purchases if you:
Purchased a hybrid car, purchased a new car, or if you pay full price for anything. When I was shopping around for my Honda Civic I definitely considered the option of purchasing a hybrid model, but it was just too expensive and the financing interest rate was a lot higher than the regular Honda Civic model. I loved having a new car for the low maintenance and the warranty, but we all know that it turned out to be the biggest financial mistake of my life.
You are currently wasting money on Investing if you:
Are not contributing to your employer plan if your employer contributes on your behalf. I personally couldn’t agree more. Employer contribution plans allow you to have an automatic rate of return in the form of your employer’s contributions, regardless of how your investment performs. You are also wasting money on investing if you purchase Mutual Funds, Stocks, ETFs, or other investments that charge commissions or fees.
You are currently wasting money in your Everyday Life if you:
Drive around searching for cheap gas, if you don’t wait for sales, if you buy bottled water, and if you pay ATM fees. I have said it before and I will say it again, I will walk for 10 blocks in the rain if it saves me a $3 ATM fee. I absolutely hate paying bank fees of any kind (and I work at a bank).
Photo by epsos