Do you know that most people today are poor not just because they are not hard workers, but rather due to lack of unnecessary wastes of money?
Most people spend their paycheck before they even receive it; they don’t pay attention to savings or investment. Do you think, is because they have much needs than everyone else in the world? Possible no, everyone want to drive the latest car, own a house, and to have much time to spend with family members and friends. Is just a lack of unnecessary wastes of money that cause most people to be poor and end up going for loan after spending their paycheck?
If you give these people all the money in this world and give them 10 years, they will still be poor, why because, they spend unwisely on things that they don’t really have to. But before I dig in, let me point this to you practically. So answer this…
Have you ever asked yourself if you could be spending your money more wisely?
Do you find that no matter how hard you try, at month’s end, you have next to no money to show for all the hard work you put in? What if I told you that, there were 10 things you could cut from your budget right now that would save you a significant amount of money every month, helping you reach your financial goals much sooner?
Table of Contents
10 Unnecessary Wastes of Money You Should Avoid
1. Banking Charges (slow wastes of money)
Have you ever looked at your bank balance and wondered where all these small charges came from? These charges are likely convenience. Fees and these types of fees are kind of like someone picking money out of your pocket on a monthly basis. These charges are usually costs for withdrawing, transferring or exchanging money and while a couple dollars here may seem harmless. Remember paying $5-10 dollars a month adds up overtime “Little Drops of Water makes A Mighty Ocean” besides whether you like it or not they even deduct it from your account before sending you notification.
How to Avoid Wastes of Money on Bank Charges
I don’t mean that you should rush to the bank and withdraw all your money since you heard me saying, bank charges are unnecessary wastes of money. Besides if you withdrew all your money where will you save it: under your bed? Or you will carry it in your pocket all the time? No not the best. There is a better way to do this and that is, Instead of you just saving your money at the bank, why don’t you invest it in the same bank by buying shares or stocks? This way, your money is invested and there won’t be any charges on it, you will rather be gaining high interest on it month after month.
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This is one secret all successful people do use to avoid being a tax on their money. So you have to act as a successful person to avoid being taxed on your monies at the bank, and also you have to stop…
2. Gambling (unnecessary wastes of money)
When I first hit the legal age to gamble, my favorite thing to do on Friday night was go to the casino. I would sit down at a slot machine, insert my money and pray that I would strike gold and win the jackpot. At that time, I had more money than brains which led me to loosed hundreds of dollars. Each and every visit which is money I can only wish to have it back. Sadly, I had absolutely no idea just how bad my odds of winning were.
In fact, the odds of winning the grand prize on a slot machine on average 1 is in 49,836,032 so my chances of retiring on a big casino win were minute at best.
Unfortunately, many people fall victim to the perils of gambling. Whether they play to win big or to just pass the time, gambling is never in the favor of the player which is why there’s the saying “the house always wins”. Once I learned my odds of winning, I promised myself that I would never spend money on gambling ever again!
How to avoid wastes of money on Gambling
Do I mean you should stop gambling at all? May be you should, but sometimes we do gamble for fun. In case you gamble for fun consider doing it with your spare money that you do not need. Whiles this is not beneficial if you don’t gamble for fun, remember I said “the house always wins” you will never achieve anything better in gambling so the best option is to quit at all, like how I did it ( is just a waste of money). And whiles you may think you are safe at the bank consider…
3. Credit Card Interest Charges
As of 2019, Americans are in over $1 trillion of credit card debt which is up from $850 billion just five short years ago. Besides having outrageous amounts of debt, collectively, these people are paying billions of dollars’ worth of interest each and every year. While credit cards can be a useful tool when used properly, many people fall victim to the vicious cycle of only paying the minimum balance.
You see, paying the minimum balance only gets you so far. Sure, it can help you avoid ruining your credit score but each dollar of debt that isn’t paid off will be subject to an interest charge (wastes of money), the average being 19.24%, meaning that your original purchase just got costlier.
For instance, if you have a $1,000 balance on your 18% interest credit card and you only pay the $100 minimum every month, it will take you 11 months to pay it off, of which almost $100 of it is just interest.
How to avoid wastes of money on Credit card interest Charges
In order to never pay credit card interest again, only charge your credit card an amount you know you have the money in the bank to repay.
Taking this one step further, set up automatic credit card bill payments, because even if you have the money on hand, failing to remember to pay your bill will cause that interest to start compounding.
Now, if you already have credit card debt and are paying exorbitant interest charges every month, there is hope. In order to avoid paying these high costs, inquire as to whether you can move your debt onto a lower interest line of credit which will instantly cut down the interest expense related to your debt so you can focus on paying the principle amount instead.
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When was the last time you actually watched a show at its intended time?
For most people, paying for cable simply isn’t worth it, making watching live television a thing of the past. As of 2018, more than 33 million Americans have canceled their cable subscriptions and have opted to spend this money on cheaper entertainment outlets. For instance, more than 150 million people are watching Netflix every single month, followed by 90 million on Amazon Prime and 55 million on Ds TV.
Using these streaming services is not only cheaper but often times they have better original content than most television stations making the switch to streaming a no-brainer.
But if you want to avoid wastes of money on your entertainment costs, then you’re in luck because I have another great suggestion and it’s the platform you have been watching funny movies there! YouTube has an endless supply of quality content that can keep you entertained for hours and help you build up that bank account at the same time.
How to avoid wastes of money on Cable
5. Expensive Gym Memberships
I’m sure you’ve seen it before. Someone gets excited as the New Year rolls around, signs up for a premium gym membership, hoping to make this upcoming year the year they get fit. Then, within a few months, they are back to their sedentary routine while their gym pass collects dust.
Statistics show that about 80% of people who sign up for a gym membership quit within the first 5 months and what’s worse is that many of them become too embarrassed to admit defeat and continue to pay for a service they’ll never use.
This issue is only compounded when those aspiring gym goers pamper themselves by signing up for expensive gyms, thinking it will push them to work out more regularly. Now, obviously a gym membership isn’t a waste for consistent gym goers but even these people need to ask themselves if they are paying for more than they really need. Nowadays, many expensive gyms mimic the feel of a spa and make sure to charge you as if they were one.
How to avoid wastes of money on expensive gym memberships
If you want to save money while getting or staying fit, ask yourself, what is the real reason I go to the gym and are there more budget friendly options I should consider?
If you still want to join gym membership you can cut off some of the cost by joining similar gym centers with low cost charges or you should consider…
6. Extended Warranties
You are seconds away from completing your transaction when the salesperson asks one final question, “Did you want to get the extended warranty?”
Being a cautious person, you opt to add in the extended warranty, increasing the total cost by almost 50%, but at least you’re covered right? If these sound like you, then don’t worry, you’re not alone. In a 2018 survey, about 30% of respondents said that they regularly opt-in for extended warranties on home electronics, major appliances, and cell phones and I too was once this person. However, over time I came to realize just how much of a rip off this really was.
I made a waste of money up to half the value of the product in the case that something would go wrong (which almost never happened).
How to avoid wastes of money on extended warranties
Personally, I have stopped buying extended warranties all together but if you still feel the need then before shelling out extra money ask yourself the following things: If this item breaks, can I afford to replace it without causing financial duress? Does the product already come with coverage from the manufacturer? And would buying a higher quality item outweigh the cost of adding an extended warranty to this purchase? If not remember that is just a waste of money so consider not buying it.
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7. Trying to impress people
Stemming from primitive times where tribe members would either be accepted by a group or die, humans have always had an inherent need to fit in. Over time, our ability to survive in our environment has become significantly easier however our need to be accepted hasn’t changed which has led to a culture of spending money to fit in.
As quoted in Fight Club, “we buy things we don’t need, with money we don’t have, to impress people we don’t like” and for most people, this statement has been or continues to be true. Whether it’s buying a new outfit to impress a girl at school or purchasing a larger home to show off to your friends, spending to impress is not advisable.
Sadly, I used to be someone who would buy all designer name clothes to show off to my classmates. However, as I’ve gotten older, I’ve luckily become much wiser, realizing that the people worth having around will like me for my personality and not for my wardrobe. But beyond making more genuine connections with people, there are actually many other benefits to avoiding this frivolous type of spending. For instance, when you don’t spend to impress, you end up saving more meaning that instead of just looking rich you can actually end up being rich.
How to avoid wastes by trying to impress people
Remember that, the real personality of a man is identified in his or her character. So instead of impressing others with things you don’t have to, consider impressing them with your attitude, and in this way, they will get to know the real you. You don’t have to buy fancy staff that cost a huge amount of money to show that you are rich, no.
So next time you put that item in your shopping cart, ask yourself, am I buying this for me or someone else?
8. Buying Liabilities
There is a difference between assets and liabilities. Whiles assets put money in your pocket, liabilities take money from your pocket. Most entrepreneurs and successful people focus on buying assets but the middle class and the poor always stays as a consumer. Successful people are passionate about acquiring income-generating assets that put money in their pockets all the time.
Two People were given $500,000 each. One having entrepreneur mindset bought 3 vending machine (asset) for business, which was putting money in his pocket month after month. The other person knew nothing about assets and with consuming mindset; he bought a private car (liability) with it. So guest what; whom of these guys do you think will become rich in the future? Their mindset surely explains itself, it surely the one who bought the vending machine that was putting money in his pocket month after month. Buying a car and not using it for business will not bring you a cent in a day but in the end you will buy fuel as well as repair service which will cost you unnecessary waste of money.
How to avoid unnecessary waste of money on buying liabilities
Focus on buying items (asset) that will put money in your pocket month after month instead of purchasing items that will take money from your pocket (liabilities)
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9. Petty Expenses
This is one factor most people don’t consider in life. There are small, petty expenses that you should get rid of in your life. An example includes: ordering for items on delivery and bearing transportation cost whiles the shop is just 5 steps away from your house, paying others for 3-minute jobs that you can do it yourself whiles there is time to do it, paying others to brush your teeth whiles you have the gut to do it yourself.
You see these are all unnecessary waste of money that you could sum them up to do something wealthy. But often is just about laziness, Others are so lazy that, them not being sick they will still pay others to brush their teeth, put a lipstick on their mouth and to comb their hair.
How to avoid waste of money on petty expenses
Avoid laziness, if there are stuffs you can get it done yourself whiles you have time to, better get it done instead of paying others to do it.
10. Renting whiles you have the money to own ownership of the product
Renting is the act of partially exchanging your money for a specific product to use it for a particular period of time and later return it. Whiles renting provides a lot of benefits with those who cannot afford the full cost a particular service, it also has a big downside (nothing is perfect). Imagine renting a house that costs $6000 a month and leaving in it for 20 years. Just do the analysis yourself; paying $6000 per month for 20 years which is 240 months, costing you $1,440,000 after the 20 years, the owner will come for the house. So tell me is it really wise to rent, whiles you have the money to pay for the product and own the ownership of it?
You be the judge.
How to avoid waste of money on unnecessary renting
If you have money to own ownership of the product, why don’t you go for it if is something that you will need it rest of your life. Don’t focus on renting for a long time, if you think is something wealthy that you surely need it go for it.
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And there you have it guys, 10 Unnecessary waste of money you should avoid, there is one special quote that can help you to avoid unnecessary waste of money and that is “Any Man Who Buys What He Does Not Need, Steels From Himself”
1. Banking fees, 2. Gambling, 3. Credit card interest charges, 4. Cable 5. Expensive gym membership 6. Extended warranties, 7. Trying to impress people, 8. Buying liabilities, 9. Petty expenses
10. Renting whiles you have the money to own ownership of the product
Thank you so much for reading this, I hope you learned something from it, and let’s chat in the comments section. What useless things do you waste your hard earned money on? Comment bellow so that we can also learn from you.