24/7 Wall St. Insights
- Many Americans spend unnecessary money every day.
- There are easy ways to cut back on unnecessary spending.
- Saving money every month can go toward paying down bills.
- Also: 2 Dividend Legends to Hold Forever
One of personal finance’s biggest “must-haves” is having a strong monthly budget on paper. Regardless of what you spend, understanding how much money is coming in and how much is going out is fundamental to making sure you are spending appropriately. For those who are financially struggling, identifying potential money-wasters can be a huge help in getting back on track and digging out of any size hole.
11. Depreciating Assets
This is a tough one, but instead of buying a brand-new car whose value immediately drops, be a smart shopper and look at something used and in good condition. Buying a Toyota or a Honda instead of a Mercedes or Lexus can also save you hundreds ever month.
10. Lottery Tickets
The hard truth is that most people will never win the lottery in their lifetime. It’s not even most people; it’s more than that, as the odds are often considered 1 in 292 million. Instead of spending $20 weekly on lottery tickets, use that money to treat yourself to a meal.
9. Impulse Purchases
Anyone who has used TikTok lately knows it’s become a digital QVC, leading to impulse purchases. If you’re worried about your bills, skip the impulse purchase and only buy something when you have some free cash.
8. Starbucks Trips
We’re all big fans of store-bought coffee, but it can easily add up. If you spend roughly $5 a day, this is $100 a month and $1,200 per year. Instead, brew your coffee at home and spend far less.
7. Brand New Grocery Items
If you have ever been to a Walmart, Aldi, or Target, its store brands are far more cost-effective. The savings add up quickly; if you are financially struggling, every penny counts, especially on food.
6. Single Use Items
This one is right from the Dave Ramsey playbook in that you should minimize how many single-use items you buy. Instead of purchasing paper towels, buy hand towels, and the same goes for a reusable water bottle rather than a case of water.
5. Luxury Brands
Like the newest iPhone, everyone wants what’s popular and trending. The good news is that you don’t need luxury pants or shirts when clothes from places like Target or Kohl’s are just as good and one-third the price.
4. Gambling
Sure, entering your work’s fantasy leagues sounds like a great way to keep up with co-workers, but it can also be pricey. Gambling should be kept in check if you’re worried about paying your bills.
3. Electronics Upgrades
There’s something great about having the latest and greatest technology, but it’s not always necessary. You can skip out on the latest iPhone if you’re pinching pennies. So long as your existing electronics work, don’t waste your money.
2. Not Preparing Meals
One of Dave Ramsey’s biggest offenders for wasting money is eating lunch out. If you have $15 a day, five days a week, that’s $300 per month ($3,600 per year). Just think of all the more important bills you can instead pay with this money if you cook at home.
1. Unused Memberships/Subscriptions
One of the biggest ways to spend unnecessarily is to overspend on memberships or subscriptions you are not using. While cord-cutting has been a thing for a while, the prices of Netflix, Disney+, and MAX have increased as much as gym memberships. If you haven’t used it for a month, drop it.
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