How To Save Money On Things You Probably Don’t Need

LuxuryJuly 18, 2018

It is a common habit for many people to evaluate their finances annually to understand whether they are doing well. They even try to ascertain any expenditure which they should be cutting down. Going through this exercise, many people notice wasteful expenses that can be avoided. Surprisingly, they neither take any action nor make changes to their lifestyles. Rather than adopting this attitude, you should concentrate on the wasteful and avoidable to make savings for a rainy day.

“A good father believes that he does wisely to encourage enterprise, productive skill, prudent self-denial, and judicious expenditure on the part of his son.” —William Graham Sumner

Let us look at some of the wasteful and avoidable expenditures.

The Daily Coffee

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Many people visit outlets such as Starbucks for a coffee every day. In most cases, they are also accompanied by their spouses. A cup of coffee from Starbucks costs around $5. When a couple makes a purchase, the minimum they will spend is $10. The annual expenditure for coffee at Starbucks combines up to $3650, which can be used for other purposes. Coffee that is brewed at home will cost fewer, but will not take away the pleasure of having it.

Competing With Others

People commonly look to their neighbors and decide to have every item the neighbors own. They indulge in unnecessary expenditure just to complete with other people. What they fail to understand is that their envy and jealousy can never be satisfied. People would be better off if they tried to stop fooling themselves into believing that they would be happier with more stuff.

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Spending Money On Books You Will Never Read

If you are a fan of books, you may notice some phenomenal deals being offered on great books. It is advisable to rethink whether you are going to read every single book you purchase. Don’t waste money on books you will never read. The cost may be as low as $1.99, but if you are going to buy one every other day, rest assured he will have wasted a substantial amount by the end of the year.

Not Making Payments When They Are Due

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It is a popular habit for many people not to pay the full amount due on their credit cards. Instead, they prefer making a partial. What people don’t realize is that credit-card issuers are imposing extra charges on the unpaid dues. This habit has put countless numbers in trouble because the overdue payments keep attracting interest. It may even make the cardholder default in the payments altogether.

A better option would be to use the card discreetly in line with one’s financial capability. Also, complete any payments due without leaving a balance pending. Credit-card companies generally wait for you to begin overspending because it gives them an opportunity to make some additional revenue by charging exorbitant interest rates. This is a waste of money which you should avoid at all costs.

Stay Away From Extended Warranties

The salespeople at the store will offer you an extended warranty for any purchase you make. They will go ahead to give you a long list of reasons why you should be making the investment. This may tempt you to but the extended warranty, but be warned. It is a wasteful expenditure that can be avoided by buying quality products. Most importantly, a three-year warranty offered often overlaps the manufacturer’s warranty. Therefore, what you are purchasing is actually some additional time, which may not suit your needs.

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Plan Your Meals

If you have never considered planning your meals, you should begin doing so right away. You’d be surprised at the amount of food that is lying in your fridge or freezer. Typically, you may rush out for shopping even when you have a week full of leftovers in the refrigerator. By planning for meals, you can cut down on unwanted expenditure. You could even save plenty of money during the year.

“The gratification of wealth is not found in mere possession or lavish expenditure, but in its wise application.” — Miguel de Cervantes

Avoidable and wasteful expenditure also includes offers made without a request, particularly from cell phone companies. They are just additional services that are charged yet that could come at a discount. You need to use your imagination to understand how you can stay away from them.