August 9, 2021
Eliminate These 13 Items to Stop Overspending
Living within your means offers many benefits. It gives you room to breathe when an emergency happens. Living below your paycheck also gives you money to save or to invest in creating passive income for you and your family. It also helps secure your future. If you are finding it challenging to live within your means, consider these 13 expenses that may be robbing your wallet.
1. Gym Memberships
Gyms know that most people will not keep coming, so they try to sell you an annual membership. Instead of paying the year-long fee, consider free options that may be available. There may be fitness paths at a nearby park, or you can work out at home using DVDs.
2. Mobile Phone Plans
You may be buying a larger mobile phone plan than you need. In particular, check the amount of data you are currently using, and compare it to plans available in your local market. You can keep the same number in many cases when you switch to a prepaid phone plan, and this move will save you lots of money.
3. Buying the Latest Gadgets
Companies are always trying to convince you that you need to upgrade your current item or buy their newest gadgets. Stop falling for this marketing. If your present article is fitting well into your lifestyle, there is no need to change.
4. Skipping Used Products
Try shopping at thrift stores and pawn shops for the latest gadgets a few months after they have come out; this simple move can often save you lots of money.
5. Leasing Autos
If you are thinking about leasing an automobile, be sure to read the fine print. When you turn in the car at the end of the lease, you may get a huge shock that you have to pay for every mile you have driven over a set amount. Additionally, you will always have to carry full-coverage insurance during the lease.
6. Buying New Cars
The average new car depreciates about 25% every year during its first five years. Choose to drive a used vehicle and cover it with liability insurance, and your wallet will become a lot heavier.
7. Paying Credit Card Late Fees
Not paying at least the minimum amount on your credit card monthly often costs you a monthly fee in addition to increased interest fees. If you have trouble remembering to pay this bill, set up an automatic draft out of your checking account to pay at least your average monthly minimum.
8. Buying and Not Watching Cable TV
Many people are home very few hours during the week, yet they pay exorbitant fees for cable TV. There are many streaming packages available for less much less money per month.
9. Not Meal Prepping
Meal prepping allows you to spend a couple of hours preparing meals for all week. Then, you will not be tempted to stop at a restaurant on the way home because you already know what is for dinner.
10. Buying Name Brand
Skip buying name-brand items. Often, store brands are produced in the same factory but with a different label put on the jar or can. Reviews can help you identify an unknown brand’s quality.
11. Choosing Subscription Services
Subscription services may seem like they will save you money in the long run. However, they may stop you from taking advantage of a great sale. Additionally, you may find that some have high cancellation fees.
12. Not Creating a Budget
Creating a budget allows you to know where you stand each month. If necessary, take out your paycheck in cash, and divide it out in envelopes. Then, when the money in each envelope is gone, you know you cannot spend any more money in the empty categories.
13. Overspending on Housing
Your housing should cost you no more than 30% of your income. If it is more, consider alternatives. Many people find it cheaper to live in campers or to rent an extra room in their homes as vacation rentals.
Eliminating these extra expenses will feel like you gave yourself a pay raise. Get started today, and watch your savings grow.