You work hard for your money. So why do you keep allowing yourself to lose it unnecessarily? Here are 10 ways you could be losing money, along with tips and suggestions on how you can keep your personal finances on track and reduce your chances of losing money the same way again.
1. Traffic and parking tickets
Few things drain your money faster than being cited for a moving violation or parking ticket. Both can be expensive and the worst part is, they’re almost always avoidable.
What you can do: Obeying posted speed limits along with the rules of the road is a great place to start. Also, make sure you read and obey parking signs. You will save money and also help create safer roadways.
2. Gambling (includes lotto tickets)
Making a bet on the chance you can turn a little money into a lot of it can be tempting, especially when lottery jackpots soar into the stratosphere. But chasing jackpots can get expensive very quickly.
What you can do: Remember that, in gambling, the odds are never in your favor, especially when it comes to the lottery. So never bet more than you can comfortably afford to lose. Or, better yet, don’t bet at all.
3. Paying ATM fees
Most banks, including CB&T, offer debit cards that allow you to withdraw money without any charge as long as you use their ATMs. But when you use ATMs elsewhere, at the supermarket and the gas station, the fees start to add up. And they can add up fast.
What you can do: The best way to avoid paying ATM fees is to plan ahead and only use your bank’s ATMs to withdraw the cash you’ll need. Also, many debit cards can be used like credit cards, so you can pay without using cash.
4. Unused subscriptions and memberships
No doubt your gym membership, or subscriptions to multiple streaming services, were purchased with the best of intentions. But, if you’re not using these memberships and subscriptions regularly, you’re losing money.
What you can do: Only pay for what you use. If you’re not going to the gym, or watching as much programming as much as you thought you would, consider cancelling or downgrading those memberships. You can always rejoin if you want to later.
5. Choosing the wrong smartphone plan
If you frequently use more data than your phone plan allows or, conversely, use significantly less, you’re either paying too much in data charges or not getting the full value from your unlimited data plan. Either way, you’re losing money.
What you can do: If your data usage and your current plan aren’t in sync, talk to your service provider about other plan options.
6. Forgetting about “free trial” offers
Many companies will let you try their product for free for a short time. The problem is, if you decide it’s not for you, you have to cancel the offer before the designated date or you will be charged.
What you can do: When you sign up for a free trial, enter its end date and instructions for canceling the offer, into your phone’s calendar program. Then set a reminder fortwo days before the expiration date and make your decision then.
7. Not maintaining your car
Neglecting to change the oil in your car and take care of its other maintenance needs on a regular basis to save money now will likely cost you a lot more down the road when you have to pay for a new engine or transmission.
What you can do: Pay attention to your car’s maintenance needs. Mechanics will often put a sticker on your windshield that lets you know at what mileage you should change your oil.
8. Wasting food
With food costs rising, buying more food than you need and letting it go to waste can cost you a substantial amount of money.
What you can do: The best way to reduce or eliminate food waste is to buy only what you and your family need, and to then prepare meals using what is in your pantry. That way, it will be easier to only shop when necessary.
9. Not using coupons
Coupons let you save money, sometimes over 50%, on things you would buy anyway. Ignoring their savings is literally leaving money on the table.
What you can do: Clip and use coupons for food and other items you normally buy. Don’t forget that restaurants often offer coupons worth significant savings.
10. Making late payments
When you don’t make your loan or credit card payments on time, lenders can, and usually will, charge you significant fees. Even worse, making just a few late payments within a set period can hurt your credit score.
What you can do: Create a budget that includes all of your payment obligations, including utilities. Then, do your best to stick to it. If you find you can’t make a payment on time, contact your lender and see if they’ll offer you an extension.