8 Ways You are Wasting Money (and How to Stop)

money management

Some money saving tips seem obvious, like cutting back on eating out and sticking to a realistic budget. But there may be some things you are wasting money on without even realizing it. Being a smart consumer means looking at all of your expenses critically—even the little things. These are some common ways people waste money without even realizing it:

 

  1. Shopping Brand Name

This goes for everything from designer clothes to grocery items to pharmaceuticals. If you insist on buying only brand name items, you’re definitely overspending. Instead, look at the quality, function, and value of an item. For groceries and pharmaceuticals especially, the generic item is likely to contain the same exact ingredients as the name brand, but will cost you a fraction of the price. Don’t get hung up on big names; it will make a huge difference in your wallet.

 

  1. Overpaying on Car Insurance

Car insurance is a necessity, but taking the time to shop around and compare rates once a year can save you big. When it comes to car insurance, you can’t assume any one company is the cheapest. Different people will pay different prices for the same coverage which is why you have to shop around to make sure you’re getting the best deal for you. Check for discounts you may qualify for and make sure you’re getting coverage that makes sense for your car.

 

  1. Paying for Cable

There are dozens of movie streaming services and non-cable TV options on the market today—and those services are always growing. Almost any streaming service is cheaper than cable or dish and you have the added bonus of paying for exactly what you want. You can build a package catered to your interests instead of having to pay for extra channels you never use.

 

  1. Keeping Electronics Plugged In

Saving money on energy goes beyond turning lights off when you leave a room. You would be shocked at how much energy waste you produce just from leaving devices plugged in. Some electronic devices, like computers, DVD players, and even microwaves will use power even when they’re not in use. You can calculate what these devices are costing you using this tool from Duke Energy. Keeping these devices unplugged can save you money on your electric bill.

 

  1. Piling on Credit Card Debt

If you use your credit card to pay for most things, it’s a lot easier to spend outside your budget unless you are vigilant. Credit card debt can add up quickly if you aren’t keeping up with your monthly payments. If you fall behind, you may find yourself spending so much money on interest that you can never catch up enough to pay off the actual balance. Don’t ignore potentially crushing interest rates. Be proactive by looking into consolidating or refinancing debt.

 

  1. Spending Too Much on Gas

Overpaying on gas can really hurt your everyday budget. Pay attention to changing prices and shop around for the cheapest gas station in your area instead of just going to the closest one. You can even go a step further by earning rebates on gas purchases. Some credit cards will net you 5% cash back when you buy gasoline. Shopping with certain stores can help you get gas discounts, too. Giant, for example, will help you save 10 cents per gallon for every 100 points you earn at Giant grocery stores.

 

  1. Overpaying Monthly Bills

Just like with car insurance, reviewing the amount you pay for your cable, internet, or cell phone provider is essential to making sure you’re getting the best deal. Some companies rope you in with discounts and monthly credits that expire after your first few months paying for the service. Don’t let that be the final word on your monthly payment. A lot of the time, if you call your provider to discuss a payment increase, they will work with you to keep your business.

 

  1. Not Earning Cash Back When You Shop

There are dozens of apps out there that give shoppers money back for their purchases. Some apps will pay you for scanning your receipts from specific stores while others will give you cash back on individual items. Ibotta and Fetch Rewards give you cash back for scanning your grocery and retail receipts. Ebates and Shopkick give you cash back on specific items from qualifying retailers. A lot of these apps have cash sign-up bonuses. Using cash-back apps is a great way to earn a little money back when you shop.

 

All of these little ways to save money can add up big time in the end. Taking advantage of new technology and competitive pricing will give you more financial power as a consumer. Use these tips and start saving today!

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