15 Habits You Might Not Know You Have That Waste Your Money
There's no way around it: if you want to meet financial goals and milestones in life, you have to learn how to budget properly. Living below your means is an important tool to learn. Simply put, this means that you must not spend more money than you earn.
Living below your means does not mean you can’t indulge in things you love. Rather, if you want to create a stable financial future for yourself while still enjoying that occasional weekend getaway, you should make conscious financial decisions, such as saving extra money, creating a budget, and cutting back on unnecessary expenses.
Some expenses are more obviously unnecessary than others. You're likely already aware that impulse shopping for expensive cream at Space NK is not quite a necessity. But what about other spending habits that you might be less aware of? Here are some common things we waste money on.
1. Paying for Services You Can Do Yourself
Sure, paying someone to clean your house or do your nails feels nice, but these services can also cost a lot of money. Scheduling in the time to do things yourself will undoubtedly save you significant sums. But if these allow you to work or just feel better, they are also a necessary expense!
2. Overdraft and Late Payment Fees
Whether it's credit card fees, overdrafts, or late financing payment fees, you need to make sure you stay on top these payments. Consider using mobile banking or money management apps to keep on top of your finances, and set reminders on your phone on when exactly you're due to pay said fees.
3. Eating Out, takeaway coffees and pubs
Post-lockdown, having dinner out with friends and going for a pint feels absolutely amazing. However, eating out costs very quickly add up. Law firm CMS conducted research that revealed that millennials spend 13% of their total income on eating out. That's a lot. We're not saying you should shun takeaway coffees and dinners forever — but do stay mindful of how much you spend on each per week. If you decide to track the spending (again, apps like Mint help greatly with this), you might be surprised just how much it's costing you.
4. Buying Brand Names
No, we're not necessarily talking Gucci and Louis Vuitton here. It can be as simple as household products, like Tesco brand loo roll vs. Andrex. Of course, longevity also matters, but there's virtually very little difference between certain branded products and other, non-branded ones. Do your research and opt for the less glam, marketed stuff from time to time.
5. throwing out food too early
UK households waste 4.5m tonnes of food each year. This amounts to £700 for an average family with children. Yep, you read that right. Making a meal plan and sticking to shopping lists, making the most of your freezer, storing your food correctly and embracing leftovers are just some ways that you can reduce food waste and save a pretty penny while doing it, too.
6. internet and phone bills
When is the last time you scrutinised your phone and broadband bills? Are you sure your package is the best deal you can get? We often forget about our direct debits, but having a ‘direct debit audit' and shopping around for better deals can save you loads.
7. Single use and disposable products
Bottled water is probably the single most wasteful product you can buy (and it ain't great for the planet, either), so why not invest in a reusable bottle you can simply top up at home? If you prefer sparkling water, a soda stream is worth the investment, and will save you money in the long run. Other disposable products you should avoid are plastic razors, plastic bags, paper towels, disposable pens, etc. Not only will you be saving, but you'll also be en-route to a zero-waste lifestyle. Win-win!
8. cabs
Technology can be a bit of a double-edged sword: it's great to have access to a myriad of information and services at the single click of a finger, but it can also make us think less about how much we spend. It's raining and cold, or perhaps the bus is running late, so the temptation of getting an Uber is oh so understandable. However, if this habit becomes frequent, it can very quickly become a super pricey one. The alternative? Cycling is the most cost-efficient way of getting around the city, and it keeps you healthy, too.
9. failing to shop around and wait for sales
Sometimes, when you see something you want, it may feel like you need it, and you need it now. Practicing delayed gratification not only helps you keep those impulses under control, but it also allows you to shop around for better deals, or to pin that wish list item and wait for it to go on sale.
10. Monthly Subscriptions
How many times have you looked at your iPhone app subscriptions, only to be surprised to find that you're paying for something you forgot you were on a free trial period for? Happens all the time. That's why it's so important to regularly check your outgoings, especially the ones that are automated on your devices. If you don't use the service regularly — unsubscribe, pronto.
11. Using unnecessary energy
It's incredibly common to spend eye-watering amounts on monthly energy bills, so here's how to reduce yours: turn off standby appliances, install a smart thermostat, choose energy-efficient appliances, and finally — consider switching energy suppliers.
12. Forgetting to return items
You've ordered the shoes, but they're not quite as great as you thought they would be. You've put them back in the box, they're sat in the corner of your room, and before you know it — the 28 day returns period expires. Oops. Forgetting to return unwanted items is a rookie mistake the best of us make, and it's mostly a time management issue. A good way to avoid this is to set reminders in your calendar so you don't miss the return window.
13. Off-licence shopping
They're also known as ‘convenience stores’ for a reason: they're around the corner, have all the essentials in stock and, are, well, pretty convenient. However, popping down to the off-licence on a regular basis can rake up significant bills. Where possible, try to do as much of your shopping at supermarkets.
14. Upgrading functioning tech
Your iPhone, television, laptop, etc. works just fine, so why upgrade to the latest, more expensive version? It's a waste, and it's also really bad for the planet.
15. Trying to keep up with the trends
Whether it's peer pressure from your friends, or influencers on social media, or the shiny and incredibly tempting e-mail marketing offers you receive in your inbox, it can be incredibly tough not to give into the temptation of keeping up with the latest trends. Admittedly, this takes quite a bit of practice and a lot of self-discipline. Consider purging your Instagram feed, or maybe you ought to have an honest conversation with your friends that your wallet really can't justify weekly brunches anymore. Whatever it is, you need to identify your triggers, and slowly learn to embrace a frugal, more minimalist life (…with the occasional treat, of course).