The 15 Biggest Ways People Waste Money
CindyDo you want to keep more of your hard-earned cash in your pocket or do you want to waste money on unnecessary things? There are so many things that people spend money on that are poor financial choice. Here are the fifteen most common ways people waste money.
1. Insurance You Don't Need
Insurance is something you buy, hoping you'll never need. However, there's a fine line between being safe and being wasteful. Many people purchase insurance policies that they don't actually need. Some policies, like collision insurance, are worth less than your deductible. Always examine what your insurance policy entails before you agree to it.
2. Keeping Up With Celebrities
Have you ever felt like your life doesn't match the lives of those around you? People often compare their lifestyles to those of their neighbors, friends, or coworkers and try their best to outdo them. Whether through material possessions or luxury experiences, you should never try to compete with anyone else. Appearances are often deceiving. You should always focus on your own priorities rather than competing with what others present to the outside world.
3. Weddings
Weddings are often seen as a symbol of a couple's love and commitment. But they aren't a good indicator of a relationship's health. Weddings are a party, while marriage is a serious commitment. Many people enter into marriage with massive amounts of debt because they overspent on a wedding. They then regret not having saved that money for their lives together.
4. Storage Unit
Did you know some people haven't opened their storage units in several years? If you have a storage unit, it's time to take stock of your belongings. Storage units accrue monthly fees to store items you likely will never use again. Instead of wasting money on a storage unit, consider selling, donating, or throwing out unused items.
5. Collectibles
Collectibles often start as a fun hobby but quickly become a major money pit. Many items people consider to be collectibles are usually just really expensive garbage. The value of collectibles is often subjective, and there's no guarantee that they'll appreciate in value over time. Never spend too much on collectibles if you won't receive a return on your investment.
6. Going to the ER for Non-Emergencies
Emergency rooms should be for emergencies, but for some reason, many people end up there for minor issues. The cost of a visit to the ER can be astronomical, even when it's for non-life-threatening issues. Instead of visiting the emergency room, schedule a visit with your doctor, which will save you a lot of money in the long run.
7. Timeshares
Timeshares are one of the worst investments you can make and a major waste of money. In the beginning, it might seem like an excellent option for a vacation home. However, the cost of buying into a timeshare, the cost of maintenance, and the difficulties you'll face when trying to sell it make this a poor financial decision.
8. Luxury Apartments
Have you ever seen an ad for a luxury apartment? These often boast stainless steel appliances, granite countertops, and hardwood floors. While these features are definitely appealing, they're also extremely overpriced. Many people who buy into these modern, luxury apartments still face the same issues everyone faces, like hearing their neighbors through the walls.
9. Oversized Homes
Bigger isn't always better, especially when it comes to housing. Investing in an oversized home will result in high mortgage payments, property taxes, utility bills, and maintenance costs. When purchasing a home, remember that your new home should suit your budget and lifestyle, not the other way around.
10. Buying Cheap Instead of Quality
People are often tempted to buy the cheapest option available while shopping, but the truth is that this can actually cost more in the long run. Cheap items frequently break or become worn out quickly and require frequent replacements. When shopping, your aim should be on quality, not affordability.
11. Minimum Credit Card Payments
Many people may advise that you meet the minimum monthly payments on your credit card. However, as interest accumulates, you will pay much more than the original price. Always aim to pay off your balance in full every month to avoid additional charges.
12. Emotional Spending
Dealing with tough emotions can be challenging, and everyone must find a way to cope. However, emotional spending can lead you to waste so much money. While occasional treats are fine, habitual emotional spending can drain your bank account. You should look into healthier, more cost-effective ways to handle your emotions.
13. Unused Memberships
Have you ever signed up for a free trial or membership only to forget to cancel before the trial period ends? So many people get sucked into memberships and subscriptions but struggle to keep track of them and cancel the ones they aren't using.
14. Going Out to Clubs
Can you imagine some people go out to clubs weekly? That's a massive waste of money. While clubbing with friends can be fun and a great way to meet new people, it's incredibly costly. The cost of transportation to and from the club and entry fees can quickly add up. Including the exorbitant drink prices, clubbing can quickly drain your account.
15. Designer Baby Clothes
Babies grow so quickly that they tend to outgrow their clothes in a matter of months. While designer baby clothes might look cute and be a tempting purchase, they aren't a smart purchase. Babies constantly have accidents and spills, causing their clothes to be soiled. Their clothes should be comfortable and suitable for daily wear and tear.
She started her blog, The Money Dreamer, when she realized the 9-5 job was not the lifestyle she wanted anymore. After designing for a while, she wanted a more meaningful life, which was freedom, so she decided to venture out. She took action so that she can live her dream life and decided to help people to live theirs by helping them how to save, budget, and invest.
