It’s so easy to waste money without being aware of it. Some of us would be rich today if we only knew and did something about it. Many people live from paycheck to paycheck with little to no savings and investments!
Why? Because we think we don’t earn enough. The truth of the matter is, though, you may be financially illiterate! Many people just don’t know how to structure their finances so that they don’t waste their hard-earned cash.
A financial coach or advisor will not take up much of our time. Take the time to learn how to handle money so that you can enjoy a relaxing life when you decide to retire.
Continue reading as we highlight some common habits that are draining your money and possibly keeping you from financial freedom.
8. Those Morning Coffees
Those fancy lattes that cost anywhere between three and five dollars at your favorite coffee shop add up! Do a quick account of how much you spend per month if you do this every day.
It’s an astounding fortune by year’s end! The smart financial decision to make immediately is to invest in a coffee maker and get your fix at home for a miserly fraction of what you are spending now.
7. Wasting Food
How much food do you throw out each day? Take a minute to think of the expired food items that go in the garbage. Think about the excess you buy on your shopping spree without a shopping list to keep you in check.
Cooking at home is the greatest way to eat. However, portion size must come into account when doing your food prep. You are not cooking for the army!
According to a Forbes report, the Food and Agriculture Organization of the UN (FAO) says there is a whopping 30% of food wastage each year, totaling $1 trillion a year.
So, you’ll save a ton of money when you shop smarter and cook smarter. And don’t forget to clean every bite from your plate!
6. Upgrading Electronics at a Whim
This is for those who want to save toward that firm financial future! If your phone is still functioning perfectly fine, there’s really no reason to get a new one. Even if your friends are rushing to buy the latest and the greatest, try to hold firm.
Getting rid of good stuff isn’t a smart move, even when the economy is at its best. And now that we are in a pandemic, with job loss, lay-offs and lockdown, we are seeking out ways to save!
So, don’t be tempted by the glitz on TV inviting you to replace your highly functioning electronics. Update only when it’s necessary!
5. Your Favorite Bar
Just because everyone knows your name doesn’t mean your money isn’t disappearing as fast as those drinks. Going out to drink multiple times per week is one of those costly habits that can also lead to issues besides an empty wallet.
Consider how much your health and bank account can benefit from staying in that night. But don’t be afraid to treat yourself to a night out with friends every once in a while when the time is right.
4. Eating Out
Eating out at a nice restaurant once or twice per week can be a spirit raiser for some persons. And we all need that spirit lift—it’s essential for our mental health. But try to avoid those quick take-out meals you grab on-the-go. They hardly sustain you through the day and are costing you a pretty penny!
The U.S. Bureau of Statistics reveals that the average American household spends $3000 eating out each year. We suggest you use a fraction of that money to buy your ingredients of choice and cook delicious food at home. From that, you can take leftovers to work, fill your stomach and increase your bank account!
You already know that smoking is an expensive habit. WalletHub says that smoking costs the U.S. over $300 billion every year. This includes loss of productivity and medical care. The cost usually doesn’t cross a smoker’s mind when they are buying their cigarettes.
A smoker must get his/her smoke, or they’ll be cranky. If you want to see multiple zeros behind the figures in your bank account someday, or want to raise your standard of living, physically and financially, quit smoking! It will save you loads of money.
2. Not Making a Shopping List
You probably knew this was coming! Walking around at the grocery store without your list usually results in impulsive buying. Shop smarter when you go shopping for the week or the month by planning out meals and purchasing the needed ingredients.
Having a set-list puts a brake on temptations. Buying what you don’t need will come back to haunt you. We all have enough stress in our lives. You don’t want to add any to your pocket through indiscipline.
1. Being a Social Butterfly
Learning how to say “no” is a crucial life skill. You don’t need to make an appearance at every social gathering due to your fear of missing out. Choose wisely which events you attend to be kinder to your pocket and your energy!
You can kindly decline an invitation, especially when it involves spending exorbitant amounts of money. If you are a person who always says “yes,” people will take advantage of your giving disposition and run you dry. So, practice saying ‘no’ to financial depletion and enrich your life!
Saving money is easier said than done. But take the courageous initiative and start with small steps– tightening up on one situation at a time. If you work on these eight steps we highlighted, your mental and financial health will improve tremendously!