Are you struggling to save money? Then you’re not alone; studies show that most Americans struggle to set aside as little as $1,000 for emergencies. However, there are small changes you can make in your daily life to start saving without making that much effort.
For example, there are plenty of things people spend money on unnecessarily without even realizing it. So you can start cutting these unnecessary expenses to spare a few bucks. Here are seven things people waste money on:
1) Shopping When Hungry
You probably already know that it is a big mistake to go to the supermarket on an empty stomach. You’ll probably be surprised to know this, but you are also more likely to spend more money if you’re hungry, even if you’re not shopping for food. In fact, a study showed that people who shop when hungry spent 64% more money compared to people who were less hungry.
2) Buying Brand Products
Most consumers believe that branded items are synonymous with quality, but that’s not always the case. That’s just a marketing tactic to make you pay more money for certain products and services. If you are persistent and patient, you are more likely to find similar or better quality products for a much lower price.
3) Bank and Credit Card Fees
If you have good credit, there is no reason why you should pay many banks and credit card fees. There are many services that offer free bank accounts or credit cards with no annual fees and advantages such as cash back and airline miles that can save you a lot of money.
4) Buying Coffee Every Day
Buying coffee every day might actually be keeping you from getting rich. A five-dollar coffee might not seem like much now, but it can add up to a couple of thousand dollars yearly. That amount of money could be put in a low-risk investment with compound interest, which could be more than doubled in 10 years.
5) Buying Extended Warranty
If you ever bought an electronic or an appliance of any sort, there is a big chance you’ve been offered an extended warranty. But most of the time, this product is a waste of money. Research shows that a five-year extended warranty can set you back up to 65% of the price of a home appliance, while there’s only a 12% chance of them needing repairs in the same period of time.
6) Buying Movie Theather Food
Did you know that movie theatres make the majority of their money through food sales? The reason why is because movie theatres have to pay concessions to show movies. So if you want to stop wasting money, you can always go to the supermarket before and sneak in some food for the film.
It goes without saying that gambling can be a huge waste of money. There are many reasons why. For example, gambling at casinos can be very addicting. Casinos simply don’t want you to win, so the odds are not in your favor. Some people also mix gambling with alcohol, and that can be a recipe for financial disaster.