It often feels good to spend money. We get a quick dopamine rush and a brand new toy to play with, but this type of spending can have a severe effect on our bank accounts, and it means that our finances aren’t as stable as they could be.
While the occasional treat is fine, there are also plenty of things that you need to stop wasting money on, and with so many things being pay-to-use nowadays, the money-wasting epidemic is worse than ever before. If you struggle to save no matter how hard you try, it’s time to take a look at your bank accounts, standing orders, and direct debits to cut out the amount of money (and time) you waste every year.
Cheap Essentials
We all have those essentials that we need in our everyday lives, but when faced with purchasing such essentials, people will often look for the cheapest option available.
While this might lessen the impact on your bank balance at first, it also means the quality is not as good as it could be. Because of this, you’ll need to invest in a replacement sooner rather than later.
Such essentials can include everything from work boots to eyeglasses, so you need to shop around and face up to the idea that making a significant investment now will save you spending more in the future, which will help keep your finances healthy.
Anything To Do With Gambling
Some people love to gamble, whereas others will not go within one hundred feet of a betting shop or casino. However, this isn’t the only type of gambling that you will come across, and things such as scratch cards or lottery tickets can also severely impact your finances, even if it doesn’t feel like a considerable investment at the time.
While people will claim that getting a return on the lottery is around 9 to 1 (which seems like good odds), this is for any prize, and could only give you £10 back on your investment. For the Jackpot, which is what everyone is playing for, the odds of winning are astronomical. So, even if you feel lucky, you are unlikely to be that lucky, and the money for your weekly lottery ticket is better spent elsewhere.
Your Morning Coffee
It’s a tired point that many people have made before, but it still rings true. Your £5 morning coffee from Starbucks might help you feel more like a person every day, but this adds up. If you spend £5 each day at least on coffee (and maybe a quick bagel or muffin for breakfast), you can end up spending £25 a week, £100 a month, and around £1200 a year.
This amount of money could be enough to pay for a holiday, car repairs, a new TV, or two months rent. When you consider it like this, you realise just how much money you waste every day, and that’s even before you take grabbing lunch or a takeaway on the way home into account.
Bad Habits
No matter who you are, you’re sure to have one bad habit that can impact your saving and spending. Usually, it’s something like cigarettes to cap off a stressful day, or fast food because you are too exhausted to cook.
You don’t need reminding that cigarettes are a waste of money, and fast food is okay in moderation (once a week at the most). However, there are also health risks associated with both of them, so it is better to cut them out completely. Of course, such an addiction, whether to nicotine or sodium, can be hard to kick.
Rather than accept this as a way of life, you can think of ways to replace your bad habits, such as meditation, exercise, or natural but equally filling foods that will boost your energy levels and make you happier and healthier along the way.
The Latest Phone
Many people will spend their entire phone contract waiting for the day where they can upgrade, but how many of you notice the difference when you upgrade to the latest iPhone or Samsung? The answer to this is, likely, not many. There may be some changes, such as a more sophisticated phone and perhaps larger memory, but this is about it.
Often, you’ll need to pay to upgrade as well, so not only are you locked into a contract for 12 to 36 months, you’ve also got to pay for the privilege of owning a phone. When you work out how much the phone might cost brand new, you may be paying over the odds for the model.
Look at it this way; if you can’t afford the cost right now in full, then you can’t afford it over the next few years. Unless your current model falls apart or gets crushed by a car, you should stick with it for as long as possible.
A Gym Membership
When you get your first gym membership, you feel like a healthy person who will change their life, beef themselves up, and get into shape. However, 12% of gym memberships go unused each year, and there is likely a higher percentage that will use the membership rarely, such as once a month.
There are plenty of reasons to have a gym membership, but there are also plenty of reasons to cancel. You can get a decent workout at home without paying upwards of £40 every month, so consider alternatives such as street running, bodyweight exercises, or investing in your own weights and workout equipment.
High-quality equipment can also be pricey, but as it’s a one-off payment, you can feel confident that you can use them whenever you like. If you can’t afford proper equipment now, you can always get creative with blocks of wood.
Burning Cash
If you aren’t careful with your finances, you may as well be burning your cash, throwing it out the window, or burying it deep beneath the ground (and then forgetting where you put it). In order to ensure your finances are stable, it’s crucial to consider what you are spending money on and whether there are any habits or impulses that you should avoid from now on.
