Are You Pouring Money Down the Drain?
Posted by P.B. | Posted in Budgeting, Personal Finance Tips | Posted on 06-10-2009
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I write this article today, as I am going through the process of determining if I am spending money that I really don’t need to. This is something I think we should all go through periodically. It helps us to see if things have crept into our spending that we could get rid of. It is like when you are looking for something and it is right under your nose, but you cannot see it.
The same thing is usually true with our money. Unless you are living on a budget it is very likely that you are spending money each month and you don’t even realize how much it is costing you. A while back I read an article at SmartMoney.com that lists 7 Things You’re Wasting Money On.
- Bottled Water
- Extended Warranties
- Gym Memberships
- Overdraft Fees
- Organic Produce
- Auto Insurance
- Music Downloads
At some time or another each of us has spent money on most if not all of these items. Some may seem like they are necessities, but with a little bit of work, you can still enjoy the benefits without wasting the money. For example, bottled water. You can try using a filtered pitcher such as Brita. Auto Insurance can often be found cheaper from another company, or maybe your current company will offer a discount. What about that gym membership? Do you really need to go to the gym to use their treadmill? Try a nice walk around the block.
The one that seems to be the most detrimental to your long-term financial plan is the overdraft fees. If you can convince yourself to start living on a budget, then you can eliminate overdraft fees from your life very easily. The solution is very simple; first, keep your checkbook balanced or monitor your account online at least once a week. Second, stop using your credit and and finally, don’t use your debit card on anything other than what you have budgeted.
It isn’t difficult but it does take some discipline.
