The following is a guest about spending money. If interested in submitting a guest post please read my guest post policy and then contact me.
Are you worried about how you waste a large sum of your money whenever you go through your income and expense report?
It can be tough when it seems we can’t find exactly where our money is going to. Therefore I would love to show you eight little ways we waste our hard earned money so we can make amends and then save more money in order to create multiple streams of income. Alright, here are eight little known ways you are wasting your money and of course the solution to those deadly habits.
1.) Technology and its luxury
Technology has come with a lot of benefits but it also another way through which we waste our money that we may not know. A recent report in my country says that we used a whooping sum of 624 million for phone calls for 3 months.
Isn’t that mind-blowing?
Some expenses includes TV subscriptions, data connections, video games, mobile recharge cards the list is endless. When you buy a tech product you need money to update some services and apps which can drastically reduce your wealth if you don’t use them wisely. Does this means we should do away with them? No rather we should be more careful and considerate when we use our money. When you make calls if what you have to say to an individual isn’t necessary why not leave it for when you meet him or her instead of saying it over the phone.
Youtube is also another way we need to be careful. Whenever I watch videos there my data exhausts very fast because most YouTube videos are in Mp4 format. When you go to YouTube try reading the comments first to determine if the video is relevant, you can also download them in 3.gp format. Also ensure that you subscribe to worthy channels that’ll make you a better person.
You have to be more careful and cautious here refuse to allow technology and its luxury get the better of you.
2.) When we fail to negotiate
This is also another little way we waste our money carelessly. We all want to buy great and valuable products but it shouldn’t cost us a fortune. Recently, I wanted to purchase a software for my site and the only way I could was through another individual. I told him and he gave me a fixed rate. It was so high for me but I really don’t know why I gave in so easily may be due to my desperation. But they point here was that I wasted my money when I failed to negotiate for a much lower price.
Do you always give in to any price or bargain even when you know it is not reasonable?
If you do then you are wasting your money. Always ask can’t I not ask for a more reasonable price. But to do that you need to have a goal, I want to buy this stuff at 100$ at most 120$. It becomes much easier to negotiate when you have a definite goal.
You can negotiate anything, believe that statement and go for it if you want to stop wasting your money carelessly.
3.) Buying products for public use always
This is very tricky to discover. Whenever you are among your friends and a need not really something important comes up whom do they look up to provide the cash? If you are always the Good Samaritan when it comes to meeting trivial needs then you might be carelessly wasting your money.
Here is a vivid illustration.
Whenever your friends need video games to play and while away time, are you the one buying the software and programmes or the hardwares (the game pad) always?
Why shouldn’t others contribute too?
What about drinks and beer, or money to buy gas for the car you guys intend to go out with. You waste money through this way because your friends are taking advantage of your “generosity”. You are always the big brother while your friends do nothing.
So be wise whenever such needs arises and learn to say no when necessary.
4.) Buying what you had no knowledge about
Another way we waste money is when we make purchases with no due study and research.When we fail to make research before purchasing stuff there is a great tendency that we might buy what we had no need of.People who do this make this common statement, it was just catchy, and wow I just love the design. But does it fulfil a need in your life?
Before you go to the mall the next time, why not get to know more about that product you intend to buy by doing do some research about it.You can ask people who have bought them or you can also read product reviews online so you can be an informed customer.
Do this so you can stop wasting your money carelessly.
This a very personal issue, so I would like to be more cautious here. Do you always go out on a date with others? Are your female friends always asking for launch with you always?
If yes then you need to be more cautious.
There is nothing wrong in taking someone out for a launch but the problem could be how often and the motive of going out. If you do it every day then you are wasting lots of money, why not invite him or her to your home instead of that expensive restaurant.
Rich people know when to forgo MacDonald’s to eat cheese and butter likewise you need to do it too. Secondly, what was your motive? If you go out with someone who has no interest with you or is even interested in another guy so you can become love birds.
Then there is a “probability” that you are going to waste your money because she wasn’t interested and your goal (love birds) for asking her out was defeated. Although she can change her mind later, so keep trying but wisely.
The whole point here is that you need to be cautious and of course wise when it comes to always having a meal at expensive and luxurious places. Don’t try to live above your means it can be disastrous.
6. Snacks and fast food.
This is different from the dating issue. Do you always spend money on food when you are at work, school, when driving, watching a movie or even reading a book?
If yes then you might be wasting your money. No matter how little those dollars might seem why not save that money instead of going to the mall to get some chocolates, biscuits and some drinks.It then becomes a habit and bad habits are easy to develop but tough to do away with. So be disciplined.
Learn how to say no to the urge to buy stuffs when it is not necessary. You can do it because I recently disciplined myself to stop buying snacks and junks unnecessarily.
7.) The fashion trend
Everybody wants to look good but it shouldn’t cost you a fortune. You should be more focused on looking good and feeling comfortable at the same time.Don’t spend your money on clothes that won’t make you feel comfortable even if they are the latest fashion trend.
You’d only end up wasting your money on those clothes because they don’t meet the goals of good clothing. Look simple. Here is a picture below so you can get what I am talking about.
I hope you got the message?
8.) Cars and automobiles
In the U.S alone it has been estimated that people use 17.6% of their pay check on transportation and gasoline and motor oil gulps about of your 4.8% of transportation costs. (Source: lifehacker.) When you try to live above your means by buying cars that you can’t maintain then you would have wasted your money on that automobile and it can also lead to debt.
Buy cars that you can truly afford to maintain without going broke. Don’t be carried away by luxury and extravagance because in the long run they would do you no good. Here is an excellent resource that’d enable you save more money on automobiles at Christian PF.
Alright I do hope I have shown you eight little ways we waste money carelessly and how to go about them? So what other ways do you think we also waste money carelessly, feel free to express your opinions through your comments.
Author Bio: Uche nwokolo is a young guy who shows people how to create wealth (lots of passive income) by being responsible at managing their money at his blog. He has a free guide how to always win when people borrow money from you.