Are you tired of money slipping away from your wallet too quickly? If you want to keep more cash in your wallet, it’s crucial to avoid some common mistakes that empty your wallet. Let’s delve into 18 common mistakes that empty your wallet.
1. Withdrawing money from ATMs
If you’re using ATMs several times a week, you might be spending a lot on banking fees. To cut down on these fees, take out a bit more money when you use the ATM or get cash back when you buy groceries. Also, try to stick to ATMs from your own bank to avoid extra charges. It’s an easy way to save on fees.
2. Banking In-Person at the Counter
Are you still going to the bank to pay your bills in person? You might be surprised to learn that you can save a lot of money, maybe tens of dollars every month, by paying your bills online or using your bank’s mobile app.
Online banking lets you do a bunch of transactions for free or at a low cost, all from the comfort of your own home. Give it a try and keep more money in your wallet.
3. Buying bottled water
Not only do disposable water bottles harm the environment, but they also hurt your wallet. Buying bottled water can cost you hundreds more than tap water. Surprisingly, some companies get their water from the same places as tap water. If you need to carry water, go for a reusable bottle instead. It’s better for the environment and your savings.
4. Eating out
Guess what? People between 35 and 44 years old spend a whopping $4,249 each year on eating out, according to the Bureau of Labor Statistics (USA). That’s a lot of money! Save going to restaurants for special times and go for leftovers at lunch. It’s a win-win – less food wasted and healthier choices for you.
5. Using name-brand medication
Picking generic drugs over name brands can save you a bunch of money, especially if you need medicine regularly. You could save tens or even hundreds of dollars every year. Just chat with your doctor or pharmacist before going for the generic option. It’s a smart move for your wallet.
6. Throwing away food
Wasting food hurts both the environment and your money. In developed countries, people throw away a whopping 222 million tonnes of food each year. On average, a household in Canada tosses out about CA$1,100 worth of uneaten food, and in the U.S., it’s around US$1,440. To cut down on food waste, try planning your meals better and make a shopping list. It’s a simple way to save both the planet and your wallet.
7. Paying for a monthly gym membership
If you don’t hit the gym multiple times a week, your membership might be a waste of money. A study found that 56.83% of new members would save more by paying each time they go instead of getting an annual membership. Consider your options and save some cash.
8. Choosing a plan with low data
Choosing the cheapest cell plan with the least amount of data may not be the smartest move, especially if you often use more than your limit. Companies charge a lot for going over your data limit. To avoid extra charges, turn on notifications, use Wi-Fi when possible, or go for an unlimited plan. It’s an easy way to keep your costs in check.
9. Using devices that suck electricity
Did you know that TVs, game consoles, and other electrical gadgets still use electricity even when turned off? Families pay about $200 a year for this “vampire load.” To fix it, grab a power strip with a button. You can press it to cut off the power when your gadgets aren’t in use. It’s an easy way to save some money.
10. Paying the minimum on your credit card
If your credit card is always full, you will be paying a lot of interest. Paying late is even worse. Let’s say you have a $1,000 balance – over 10 years, just paying the minimum every month would rack up $798.89 in interest alone. To keep those interest fees low, aim to clear your balance each month or go for a card with a lower interest rate. It’s a smart move to save some cash.
11. Letting your car engine idle
Leaving your car running while waiting in a drive-thru isn’t just bad for the environment, it’s also expensive. Surprisingly, after only 10 seconds, it’s financially smarter to turn off the engine and restart when you’re ready to move again. Save money and reduce emissions by giving your engine a break while waiting.
12. Buying a coffee every day
If you go to the coffee shop every morning before work, you’re spending lots of money. Save cash by making your coffee at home and bringing it in a reusable mug. Easy way to keep more money in your wallet.
13. Never using coupons
Forgetting to use coupons is like letting your money slip away. Nowadays, you’ve got lots of ways to save, not just with regular coupons but also through apps built to keep your money in check. Some people who get into it say they save as much as 84% on their grocery bills. Don’t miss out on these easy ways to keep more cash in your wallet.
14. Renting your modem
When you’re picking an internet plan, see if the cost includes renting a modem. Some companies add an extra $10 each month for modem rental. That adds up to $600 over five years, and you still don’t own the modem. A smarter choice is to buy your own modem, as many options are under $100. Save money in the long run by owning your equipment.
15. Buying everything new
Buying only new stuff can cost you a lot. You can save a bunch by getting things second-hand, like books, furniture, video games, and even your car. New cars lose 30% of their value in just the first year. Waiting a bit means you can find a recent model at a way lower price. Save money by choosing second-hand.
16. Dry-cleaning all your clothing
Getting your clothes dry-cleaned might be quicker, but it’s an expensive habit. Save dry-cleaning for clothes that say “dry-clean only.” You can even get dry-cleaning kits for about $10 and do it yourself. It’s an easy way to save some cash.
17. Playing the lottery
Playing the lottery each week doesn’t really increase your chances of winning the big prize. In fact, you might get a better return on your money by putting it in the stock market. For instance, if you spend $5 every week on lottery tickets and never win, that’s $5,200 over 20 years.
But, if you invest the same amount in the stock market at an average rate of 7.3% (which is how stocks have performed on average), you’d have $11,015 in your wallet after two decades.
18. Subscribing too many services
Subscriptions are great when you actually use them, but if you have so many (like magazines, apps, and more) that you can’t keep up, you might be throwing money away. A survey says 24% of people think they have too many video streaming services. If you’re not using a service much, cancel it. You can always sign up again later when you have more time. Save your money for what you really enjoy.
