Six Ways You Might Be Wasting Money

Spending your money wisely seems like an easy thing to do. But even as careful as you are with your paychecks, you may be wasting money in ways that you do not even realize. Even the smartest people often spend their money on wasteful ambitions or things that they simply do not need to be spending money on. This is often the result of laziness, lack of information or just being too busy to notice. Here are six ways that many people are wasting their money on. Are you spending your money on one of these?

1.    Bank Fees.

When is the last time you had an overdraft on your checking account or savings account? Many Americans fail to keep accurate records of their checking account so they spend more than what is in there. As a result, they are slapped with significant fees for each transaction over the limit. Some banks charge up to $35 for each occurrence which can add up very quickly.

You may also be wasting a significant portion of your paycheck by paying ATM fees at banks other than your own. Every time you visit a bank ATM where you do not have an account, you could be paying three to four dollars just to withdraw money. It may not seem like a lot of money, but if you do this five times during the week, that’s $20 just to withdraw money. Wouldn’t that money be better spent as a half a tank of gas or something more productive?

2.    Late Fees.

We’ve all had a late fee in our lifetime. Whether it’s at the library, with our credit card payment or some other entity, late fees can really add up. It may not be so bad at the library where it’s a dime per day, but credit card companies often charge $35 or more for a late fee. Many times, these late fees can even be avoided. If you set up an automatic bill pay through your bank so the money is taken out a couple days before the payment is due, you could possibly save yourself hundreds of dollars in late fees in the course of a year. Also, you can set up a Google alert for your email or keep a calendar with the payment dates clearly marked so you always know when a due date is approaching. Taking a few minutes at the beginning of each month to budget your money will help avoid this problems from happening any more often than it needs to.

3.    Magazine and Newspaper Subscriptions.

Many people subscribe to a variety of magazines and periodicals but they never read them. Instead, thy have a stack of magazines and newspapers stacked in a corner of their office or bedroom that they intend to ready “some day.” Cancel these subscriptions and you could save yourself a lot of wasted money each year, not to mention the space you’ll save!

4.    Spoiled Food.

How often to you clean out your fridge and throw away a bunch of food that has gone bad? You may have thought you were going to use 30 pounds of potatoes before they went bad, but now they are moldy and squishy. When you go grocery shopping, create a menu for the upcoming weeks and then list the foods that you will need for those meals. Look for things you can freeze and buy dry goods in bulk. Also, keep produce to a minimum because it will go bad quickly. Plan to go to the store once or twice a week to restock your produce to keep it from going bad.

5.    Cable TV Packages.

Do you have one of the most elaborate and inclusive cable TV packages offered by your cable company? If so, how often do you watch anything besides the basic channels? You could be spending a lot of extra money paying for something that you rarely (if ever) use. Evaluate your TV needs and consider downsizing to a less expensive package with fewer channels. You probably won’t even miss the channels that you get rid of.

6.    Accruing Interest.

Do you have a large balance in your checking account that just sits there month after month? If so, congratulations! But you could also be missing out on letting your money work for you. Instead of letting that unused money sit in your checking account, transfer it to an interest-bearing savings account. Online institutions typically offer the best returns.

These are just six ways that you may be wasting money or missing out on opportunities to put more money back in your pocket. Take a step back and look at your lifestyle and you may be able to find several other ways you are just throwing money away as well.